Full Form of CDD

What is CDD?

Customer Due Diligence (CDD) is a process mandated by the Reserve Bank of India (RBI) under Know Your Customer (KYC) norms for all financial institutions. It involves verifying the identity, address, and financial profile of customers to assess risk and prevent money laundering, terrorism financing, and fraud. CDD is performed at account opening, during periodic updates, and when high-value transactions occur. In India, CDD is governed by the Prevention of Money Laundering Act (PMLA) and RBI circulars, requiring banks, non-banking financial companies (NBFCs), and other regulated entities to collect documents like Aadhaar, PAN, and proof of address. Simplified CDD applies to low-risk accounts (e.g., small savings), while enhanced CDD is required for politically exposed persons or high-risk customers. CDD is a core topic in banking exams like IBPS, SBI PO, and RBI Grade B, where questions cover its objectives, documentation, and regulatory framework. Understanding CDD helps students and professionals grasp compliance requirements essential for India’s financial system integrity.

CDD का फुल फॉर्म

Example

Before opening a new savings account, the bank must complete CDD to comply with RBI’s KYC guidelines.

CDD — frequently asked questions

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