Certified Regulatory Compliance Manager (CRCM) — Question 159

The Reserve Bank may recover by charging any account on its books maintained by the sender if:

Answer options

• A. The Reserve Bank makes written demand to sender to assume defense of the proceeding
• B. Any action by the Reserve Bank within is the scope of its authority in handling the item
• C. The sender has not made any other payment arrangement acceptable to the Reserve Bank
• D. There is any warranty made by the Reserve Bank

Correct answer: A, C

Explanation

Option A is correct because it directly states that the Reserve Bank can charge the sender's account upon a written demand for defense. Option C is also correct as it indicates that the sender's failure to arrange an acceptable payment method allows the Reserve Bank to recover funds. Options B and D are incorrect because they do not fulfill the specific conditions under which the Reserve Bank can charge the sender's account.