Legal & Regulatory Aspects of Banking

1. Acceptance of deposits is regulated by Central Govt. under Companies (Acceptance of Deposit) Rules 1975 in respect of:

2. Which of the following definition as per Sales of Goods Act is not correctly stated:

3. No company other than a banking company can use the word ‘bank’ as part of its name. which of the following is exempted from this requirement (a) a govt. company (b) subsidiary of a bank (c) primary credit society:

4. As per Limitation Act 1963, if a suit is filed after the expiry period of limitation it shall be:

5. The Banking Laws (Application to Cooperative Societies) Act 1965, extends certain provisions of (a) Companies Act 1956 (b) banking Regulation Act (c) Act, to cooperative banking sector.

7. If the court, where the suit is field is closed on the date of expiry of limitation, the suit:

8. Under the provisions of Section 22 of RBI Act:

9. Which of the following statements is not correct:

10. As per Sale of Goods Act, if there is breach of warranty, which of the following would be true:

11. Section 6 (1) (o) of Banking Regulation Act deals with which of the following aspects:

12. The company matters of a bank regulated by (a) SEBI (b) RBI (c) Ministry of Corporate Affairs (d) Authorities under Companies Act

13. The period of limitation can be got extended by the creditor, in which of the following situations (which one is more appropriate):

14. X had purchased a 2nd hand car from Z and made the payment. The car is taken in possession by the police as it was stolen one. As per Sale of Goods Act, this amount to:

15. The banking companies that are allowed to operate in a very limited geographical area, are known as:

16. Where licence of a banking company is cancelled, it can make an appeal to:

17. In which of the following cases, the limitation period is 30 years:

18. For action under SARFAESI Act, the account should be NPA:

19. With a view to ensure that the controlling interest in a banking company does not change hands without the knowledge and approval of RBI:

20. Bank has to file a suit on the basis of a promissory note dated Sept 22,2006. Bank made the demand for payment on Nov 10,2006. The suit can be filed latest by:

21. When a security interest is created in favour of a bank, it requires registration with _____, under provisions of SARFAESI Act:

22. If an official of a bank is removed from office by RBI, he is:

23. Every person whose total income in a previous year exceeds the maximum amount which is not liable to tax, is required to file his return by due date u/s _______ of Income Tax:

24. When RBI makes borrowing costly for certain purposes or stipulated higher margins for certain type of advances, this is part of:

25. Which of the following is a function of a securitization company, under provisions of SARFAESI Act:

26. Where a bank has been charging interest rate from a borrower at rate prescribed by RBI, such rates of interest cannot be questions in a court of law under the provisions of which of the following:

27. The benefits provided by an employer to its employees attract payment of tax, which is called:

28. The provisions of SARFAESI Act are not applicable in case of a loan account in which the amount due is ______ of _______:

29. Name if a bank can be included in the 2nd schedule of RBI Act to make it a scheduled bank if (a) it is state coop bank (b) company defined u/s 3 of Companies Act (c) an institution notified by the Central Govt. in this behalf (d) company incorporated outside India under the foreign law.

30. To fulfill its SLR requirement, a bank , among others, can invest in approved securities, which means the securities:

31. The Lok Adalt is constituted under provisions of which of the following Act:

32. In which of the following cases, the SARFAESI Act provisions are applicable:

33. Which among the following statement is not correct with regard to publication of accounts and balance sheet of a bank:

34. Who performs the functions and exercises the powers of supervision and inspection of banks under RBI Act and B R Act:

35. Action under provisions of SARFAESI Act cannot be initiated by which of the following:

36. Which among the following statement is not correct:

37. Majority of share capital in RBI is held by:

38. Where a bank is wound up, the holder of a cheque (issued by the customer of bank having sufficient funds), becomes:

39. Which of the following is not correct regarding FEMA 1999:

40. Which of the following is not correct in the context of protection to paying bank:

41. A bank makes payment of a cheque bearing forged endorsement of the payee. Later on it is found that bank has made payment to a wrong person on the basis of forgery:

42. Which of the following Act, is not related to registration of certain charges or transactions:

43. Universal Bank made payment of a cheque of large amount which was later on found to be materially altered. The alteration was not visible. But when the cheque was put before ultra-violet lamp, the alteration was visible. The drawee claimed that the bank was negligent for not examining the cheque before the ultra-violet lamp.

44. A person to be treated as resident should be residing in India for _____, during the preceding financial year, in addition to fulfillment of other conditions:

45. X deposited a cheque of Rs.1000 with his bank for collection from another bank. The account is being conducted satisfactorily for 10 months. At the time of deposit of cheque with the collecting bank it was an uncrossed cheque. The collecting bank, by putting its own stamp, collected the cheque. Later on it turned out to be a case of conversion (collection of cheque for a wrong customer). What will be the liability of the bank.

46. A signs a contract in which he assures B that if B suffers loss on account of legal action initiated by C in a court against B, A will make good the loss.

47. In a contract of indemnity, the person who makes the promise to save a person from loss is called ______ and the person who is entitled to be compensated is called _____:

48. Under provisions of Companies Act 1956, it is mandatory to add the word ‘limited’ of ‘Private limited’ with the name of a company. Which company is exempted from use of these words and with whose permission:

49. Under FEMA 1999, which of the following is not a person:

50. A bank guarantee was issued and the validity period of the guarantee has expired . Bank did not get any claim from the beneficiary within a period of one month, given to the beneficiary, for loading claim. Later on, after a year, the beneficiary makes a demand on the bank against the guarantee as cause of action had arisen during the validity period:

51. Which of the following authority has the jurisdiction for incorporation of Limiter Liability Partnership:

52. ______ bank only forwards the letter of credit to the beneficiary and has no obligation to make payment against the documents presented by the beneficiary:

53. A bank which is appointed by the opening bank to make payment on behalf of the opening to the negotiating bank when documents are presented on due date, is called:

54. Which of the following is not correct regarding to Right to Information Act 2005:

55. In _______ LC, the beneficiary transfer his rights in the letter of credit to 3rd parties:

56. The term money laundering has been defined in which of the following Act:

57. The document, in an LC, that gives details of the sale is called _______:

58. When supplier of machinery is ready to supply the machinery to the buyer on long payment basis, on the payment guarantee from the bank, such bank guarantee is called:

59. Under RTI Act 2005, the information does not include, which of the following:

60. Which of the following is not true in the context of bills of exchange:

61. A bill of exchange is payable after sight, its due date shall be calculated with reference to:

62. Under provisions of information Technology Act, which of the following is the authority is to exercise supervision over the activities of certifying authorities issuing Digital signature:

63. An evidence in writing as a proof of possession or control of goods authorizing to receive the goods is called:

64. A bank releases document of title to the goods to the borrower without payment. To cover such transaction, the bank obtain:

65. The definition of money laundering is given in:

66. The mortgage property is transferred in the name of the bank with the condition that it will be re-transferred on repayment of the loan, in case of ______ mortgage:

67. Which of the mortgage is negatively defined out of the following:

68. Which of the following Act has been repealed by the Right to Information Act:

69. Which of the following statement is not true with regard to a partnership firm:

70. Banks are to maintain records of all series of cash transactions integrally connected to each other which have been valued below Rs.10 lac where such series of transactions have taken place _____, as per Prevention of Money Laundering Act 2002:

71. Which among the following statements do not match:

72. Under Right to Information Act, the responsibility to give information is that of the public Information Officer designed by:

73. Which of the following is not correct in connection with a Muslim Trust:

74. A temporary overdraft is allowed by the bank to a partnership firm for quite some time. The cheques issued by the firm are paid to the debit of this overdraft occasionally. A cheque is returned by the bank stating arrangement exceed although there was no debit balance in the overdraft account at the time of returning of the cheque. The bank has not given any prior notice to the customer for not allowing such facility any more. The firm claims damages from the bank

75. Cyber laws in India are contained in which of the following:

76. Which of the following statement is not correct regarding assignment of actionable claim:

77. A charge on the assets of a company that is not fastened/attached to specific assets is called:

78. Section 134 of Companies Act 1956 deals with which of the following aspects:

79. Which of the following are the objectives of Information technology Act:

80. Under provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security interest Act, transactions of creation of security interest are required to be registered with:

81. If public company is having paid up capital of Rs.5 cr or more, as per Companies Act 1956, it must have:

82. A right, title or interest of any kind created by a borrower in a security in favour of the secured creditor under provisions of SARFAESI Act is called:

83. Under provisions of SARFAESI Act, where the borrower wants to approach DRT against the bank to stop the bank from taking possession of the charged asset it can do so within:

84. A 60 days’ notice is given to the owner of assets under SARFAESI Act before taking over the possession:

85. A private key and its mathematically related public kay which are so related that the public kay can verify a digital signature created by the private key, is called:

86. where an asset is sold under provision of SARFAESI Act, the sale certificate issued by the bank is: (a) conveyance of immovable property (b) it requires payment of stamp duty (c) it is only an agreement to sell

87. In which of the following loans, the eligible security can be sold under provisions of SARFAESI Act:

88. A company wants to appoint X,Y and Z as the directors in the same meeting. How resolutions are required to be passed?

89. Under provisions of right to Information Act, when information is sought by way of inspection of records, the charges are:

90. Which of the following statement is not correct in the context of DRTs:

91. Which of the following committee is not associated with corporate governance, directly or indirectly:

92. Which of the following is not within the authority of Recovery Office of DRT:

93. Which of the following persons can be appointed director of a company:

94. Which of the following is correct in the context of consumer Protection Act:

95. If the no. of small shareholders is _______ they can effect a director from small shareholders:

96. Under Sale of Goods Act, there is an implied condition that the goods shall correspond with the description, if:

97. An agreement in which a party to the agreement has the option to treat the agreement illegal is called:

98. A contract to perform the promise or discharge the liability of a 3rd party, if the 3rd party defaults, is called, a contract of _____:

99. Loan account of Mr. X had running irregular and Y agrees to guarantee the loan under the impression that account is being conducted satisfactorily, Bank did no provide correct information to Y when Y asked the bank about the status of account:

100. Mortgage can be created to secure (which one is wrong):