UPSC Prelims Practice Questions — MCA replaces Annual KYC requirements under the Companies Act, 2013 with abridged KYC requirements once in three years

Question 1

With reference to the Ministry of Corporate Affairs' December 2025 reform of Director KYC, match List I with List II and select the correct answer using the code given below the Lists:

Accepted Answer

A-2, B-1, C-3, D-4

Answer

A-1, B-2, C-4, D-3

Answer

A-2, B-1, C-4, D-3

Answer

A-1, B-2, C-3, D-4

Question 2

The replacement of annual Director KYC with a once-in-three-years abridged KYC intimation under Rule 12A in December 2025 was primarily based on the recommendation of which one of the following bodies?

Accepted Answer

High Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR)

Answer

Company Law Committee (CLC) chaired by the Secretary, MCA

Answer

Injeti Srinivas Committee on Corporate Social Responsibility

Answer

Bibek Debroy Committee on Decriminalisation of Economic Offences

Question 3

With reference to the DIR-3 KYC framework under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, consider the following statements:

Accepted Answer

1 and 3 only

Answer

2 and 4 only

Answer

1, 2 and 3

Answer

1, 3 and 4

Question 4

Under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, what is the fee payable by a Director Identification Number (DIN) holder for filing Form DIR-3 KYC after the due date, when the DIN stands deactivated for non-filing of KYC?

Accepted Answer

Rs. 5,000

Answer

Rs. 1,000

Answer

Rs. 10,000

Answer

Rs. 25,000

Question 5

Under Section 154 of the Companies Act, 2013, within what maximum period from the receipt of an application under Section 153 is the Central Government required to allot a Director Identification Number (DIN)?

Accepted Answer

One month

Answer

15 days

Answer

60 days

Answer

90 days

Question 6

Under the Companies Act, 2013, which of the following authorities is empowered to allot the Director Identification Number (DIN) to an applicant?

Accepted Answer

Central Government (Ministry of Corporate Affairs)

Answer

Registrar of Companies of the State concerned

Answer

Securities and Exchange Board of India

Answer

National Financial Reporting Authority

Question 7

Match List I (Section of the Companies Act, 2013) with List II (Subject matter) and select the correct answer using the code given below:

Accepted Answer

A-3, B-2, C-1, D-4

Answer

A-2, B-3, C-4, D-1

Answer

A-3, B-1, C-2, D-4

Answer

A-4, B-2, C-1, D-3

Question 8

Which one of the following is the flagship e-Governance project of the Ministry of Corporate Affairs that serves as the single online portal for all statutory filings under the Companies Act, 2013?

Accepted Answer

MCA21

Answer

SPICe+

Answer

CHAMPIONS Portal

Answer

AGILE-PRO-S

Question 9

In which year was the MCA21 e-Governance project, the flagship online platform of the Ministry of Corporate Affairs, originally launched?

Accepted Answer

2006

Answer

2002

Answer

2013

Answer

2021

Question 10

With reference to MCA21 Version 3.0, rolled out by the Ministry of Corporate Affairs from fiscal 2021-22, which one of the following is a new functionality introduced under this version?

Accepted Answer

e-adjudication and compliance management system for corporates

Answer

Goods and Services Tax e-invoicing for B2B transactions

Answer

Aadhaar-based e-KYC authentication for income-tax filers

Answer

UPI-linked merchant onboarding for small businesses

Question 11

Which one of the following is the nodal department of the Government of India that steers the Jan Vishwas (Amendment of Provisions) reform aimed at decriminalising minor offences across Central Acts?

Accepted Answer

Department for Promotion of Industry and Internal Trade (DPIIT)

Answer

Ministry of Corporate Affairs

Answer

Department of Legal Affairs, Ministry of Law and Justice

Answer

NITI Aayog

Question 12

In the context of the decriminalisation drive under the Companies Act, 2013 and the Jan Vishwas (Amendment of Provisions) Act, 2023, the term 'compounding of offences' most precisely refers to:

Accepted Answer

A mechanism whereby an offender settles a specified offence by paying a prescribed sum or penalty in lieu of facing criminal prosecution

Answer

The clubbing together of multiple similar offences committed by the same person into a single consolidated charge for trial

Answer

The cumulative escalation of fines on a repeat offender for the same statutory default

Answer

The transfer of jurisdiction over an offence from a criminal court to the National Company Law Tribunal for adjudication

Question 13

With reference to the amendment to Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014 notified on 31 December 2025 and effective from 31 March 2026, consider the following statements:
1. The annual KYC filing requirement for DIN holders has been replaced with a KYC intimation to be filed once in every three years.
2. The revised simpler KYC form can also be used for updation of mobile number, email address and residential address, and for re-activation of DIN.
3. Verification by the DIN holder and certification by a professional is mandatory in every case where the revised simpler KYC form is submitted, irrespective of the purpose.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 3 only

Answer

1, 2 and 3

Question 14

With reference to the amendment to Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014 notified by the Ministry of Corporate Affairs in December 2025, which one of the following statements is correct?

Accepted Answer

It replaces the annual director KYC filing with a once-in-three-years intimation requirement

Answer

It abolishes the Director Identification Number (DIN) regime

Answer

It transfers the director KYC function from the Ministry of Corporate Affairs to the Registrar of Companies

Answer

It makes director KYC applicable only to directors of listed companies

UPSC Prelims Practice Questions — MCA replaces Annual KYC requirements under the Companies Act, 2013 with abridged KYC requirements once in three years

Q1. With reference to the Ministry of Corporate Affairs' December 2025 reform of Director KYC, match List I with List II and select the correct answer using the code given below the Lists:

Q2. The replacement of annual Director KYC with a once-in-three-years abridged KYC intimation under Rule 12A in December 2025 was primarily based on the recommendation of which one of the following bodies?

Q3. With reference to the DIR-3 KYC framework under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, consider the following statements:

Q4. Under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, what is the fee payable by a Director Identification Number (DIN) holder for filing Form DIR-3 KYC after the due date, when the DIN stands deactivated for non-filing of KYC?

Q5. Under Section 154 of the Companies Act, 2013, within what maximum period from the receipt of an application under Section 153 is the Central Government required to allot a Director Identification Number (DIN)?

Q6. Under the Companies Act, 2013, which of the following authorities is empowered to allot the Director Identification Number (DIN) to an applicant?

Q7. Match List I (Section of the Companies Act, 2013) with List II (Subject matter) and select the correct answer using the code given below:

Q8. Which one of the following is the flagship e-Governance project of the Ministry of Corporate Affairs that serves as the single online portal for all statutory filings under the Companies Act, 2013?

Q9. In which year was the MCA21 e-Governance project, the flagship online platform of the Ministry of Corporate Affairs, originally launched?

Q10. With reference to MCA21 Version 3.0, rolled out by the Ministry of Corporate Affairs from fiscal 2021-22, which one of the following is a new functionality introduced under this version?

Q11. Which one of the following is the nodal department of the Government of India that steers the Jan Vishwas (Amendment of Provisions) reform aimed at decriminalising minor offences across Central Acts?

Q12. In the context of the decriminalisation drive under the Companies Act, 2013 and the Jan Vishwas (Amendment of Provisions) Act, 2023, the term 'compounding of offences' most precisely refers to:

Q14. With reference to the amendment to Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014 notified by the Ministry of Corporate Affairs in December 2025, which one of the following statements is correct?