Certified Regulatory Compliance Manager (CRCM) — Question 176
Payment to a beneficiary is made at the earlier of the time when:
Answer options
- A. The payment order is credited to the beneficiary's account or when notice of the credit is sent to the beneficiary
- B. The amount is credited to the receiving bank's account at the Reserve Bank or when the payment order is sent to the receiving bank
- C. The amount is debited to the receiving bank's account at the Reserve Bank or when the payment order is sent to the receiving bank
- D. The payment order is debited to the beneficiary's account or when notice of the credit is sent to the beneficiary
Correct answer: A
Explanation
The correct answer is A because payment to a beneficiary is officially recognized when either the payment order is credited to their account or they receive notice of such credit. Options B and C incorrectly focus on the receiving bank's account at the Reserve Bank, which is not directly related to the beneficiary's payment timing. Option D misrepresents the process by stating the payment order is debited instead of credited.