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    Question

    According to the IFSCA (Payment Services) Regulations,

    2024, what is the primary duty of a Payment Service Provider in relation to client funds?
    A To invest client funds in government securities Correct Answer Incorrect Answer
    B To protect applicable funds and comply with AML and KYC guidelines Correct Answer Incorrect Answer
    C To lend out client funds at a regulated interest rate Correct Answer Incorrect Answer
    D To maintain a fixed deposit of client funds with IFSCA Correct Answer Incorrect Answer
    E To segregate client funds in international accounts Correct Answer Incorrect Answer

    Solution

    A Payment Service Provider (PSP) is required to  protect applicable funds  and comply with  Anti-Money Laundering (AML), Counter-Terrorist Financing (CTF),  and  Know Your Customer (KYC)  guidelines as outlined by IFSCA.

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