01. A saving bank customer of Modern Bank issues a chaque of Rs.1500 in favour of M/s swastic Enterprises or order. The cheque is paid by the bank on presentation through clearing with endorsement from the payee as ‘Svastika Enterprises’. The endorsement is also confirmed by the collecting bank. The drawer claims that the payment has not been made in due course and claims refund of the amount

a. This is a payment on the guarantee by the collecting bank due to which paying bank’s position is safe

b. The cheque is of a small amount,. Hence the bank should refund the money

c. If customer is valuable, the customer’s request should be accepted

d. Endorsement is irregular due to which the paying bank is not protected under the provisions of Section 85 of NI Act

e. All the above

02. A banking company fails to produce books, accounts and documents which it is bound to furnish under the provisions of RBI Act, what is the penalty as per Banking Law Amendment Act 2012

a. It can be fined up to Rs.200000

b. It can be fined up to Rs.5000

c. If offence continues additional fine could be Rs.50000

d. A and c

e. B and c

03. When a chairman of managing director is removed from his post, he ceases to be a director and cannot be appointed as director during the next ______years

a. 2 years

b. 3 years

c. 4 years

d. 5 years

e. 8 years

04. What %age of directors in a bank should have specialized knowledge

a. 10%

b. 24%

c. 40%

d. 51%

e. 75%

05. Your customer issues a cheque for Rs.10000 in discharge of his liability towards Mr. Shayam Prasad or order, who endorses the same in favour of Mr. Sita Ram In blank. This cheque

a. Cannot be endorsed further as the blank endorsement restricts further negotiation

b. Can be negotiated by Mr. Sita Ram without endorsement by him and by the mere delivery

c. Can be negotiated further by Mr. Sita ram full endorsement by him followed be delivery

d. Can be endorsed by him in blank only

e. None of the above

06. A is holder of a cheque who endorses sans recourse to B and B to c and C to D who endorses it to E. cheque is dishonored

a. E can claim from B,C and D

b. E cannot claim from any one

c. E can claim from all

d. E can claim from A

e. A And c

07. Where a bank is prohibited to accept the deposit despite prohibition for not accepting the depositing the deposits, what is the punishment

a. Fine to extent of 20% of the amount of deposit, so accepted

b. Fine to extent of 50% of the amount of deposit, so accepted

c. Fine to extent of 100% of the amount of deposit, so accepted

d. Fine to extent of 200% of the amount of deposit, so accepted

e. Deposit has to be returned back

08. What is the requirement u/s 25 of b R Act, to be fulfilled by the banks in India

a. Banks are to maintain 75% of the demand and time liabilities as assets in India

b. These assets would be there as on last Friday of each quarter

c. If such Friday is holiday, the preceding working day would be deemed to the relevant day

d. Quarter for the above purpose is of 3 months

e. All the above

09. A cheque of Rs.10000 issued by Ram Chander, one of your account holders, in favour of Shivaji is stolen by one Radhey Shyam who forges Shivaji’s signatures and endorses it in favour of Ganeshi lal, who obtain the payment from the bank. In this situation what would be bank’s position

a. Bank will be liable for the forgery

b. Bank will be liable only if the drawer proves that the instrument is forged

c. Bank will not be liable if Ganeshi Lal agrees to refund the amount

d. Bank will get protection available to it under Section 85(1) NI Act and will not be liable for the payment made

10. Which of the following is not a correct statement ?

a. Only scheduled banks are to maintain cash reserve u/s 42 of RBI Act

b. Non- scheduled banks are to maintain cash reserve u/s 18 or B R Act

c. Additional cash reserve can be prescribed to be kept by Central Govt.

d. Interest is required to paid by RBI on cash balances maintained with it u/s 24 of B R Act

e. Banking companies are required to maintain reserve fund u/s 17 of B R Act