__________ is the purpose of the new rules (by May 2023 ) requiring income proof for investments of Rs 10 lakh or more in small savings schemes ?

(a) To encourage more people to invest in small savings schemes.

(b) Preventing money laundering and terrorist financing activities.

(c) To increase the interest rates offered by small savings schemes.

(d) Simplifying the KYC process for investors.

Ans.(b)

Sol. In an effort to prevent money laundering and terrorist financing activities, the Indian government has implemented new regulations requiring individuals investing Rs 10 lakh or more in these schemes to provide income proof.