A bank has failed to meet its obligation on account of a payment on due date. What kind of risk it is:
credit risk
liquidity risk
settlement risk
payment risk
Your branch has sanctioned working capital limit of Rs.9 lac to a partnership firm which submits stock report with stocks worth Rs.28 lac and sundry creditors of Rs.18 lac. The margin in the account is only 20% , the unit being an SSI unit. What is the maximum amount up to which the limit can be allowed to be availed by the party?
Rs.6 lac
Rs.8 lac
Rs. 9 lac
Rs.4.60 lac
Bank Universal Limited receives a letter of credit of $ 20000 in favour of M/s Diamond Exports Pvt Ltd for exports to Germany. After verification of the genuineness of the credit, it is forwarded to the beneficiary through registered letter. Unfortunately, due to postal strike, by the time the letter of credit is delivered, its validity period expires. The exporter threatens legal action against the bank:
bank is liable as bank has not handed over the credit in time to the beneficiary
postal department is liable for the loss and exporter has to take up the matter with the postal department
bank is not liable as it does not assume any liability for the consequences arising out of delay in transit due to actions beyond its control
bank could persuade the opening bank to extend the validity date so that it is not put to loss
Your branch has received a garnishee order in the name of your customer having saving bank account, with following transactions. Which among these is not subject matter of the garnishee order:
an advice ready for despatch to another branch after debit to the account in payment of cheque
an advice received for a cheque which was sent in collection, from another branch but not credited to the account so far
a cheque sent in clearing, the amount of which has been credited to the account
an amount of Rs.4000 relating to his wife’s account credited by mistake to the account of the customer
To pass a cheque issued by the customer in favour of electricity department, bank allowed a small amount of overdraft to one of its saving bank account holder, without his request. The customer is not ready to pay the amount of overdraft:
bank can recover the amount
bank cannot recover the amount
bank cannot recover the amount as this has been given without consent of the customer
bank can recover the amount but no interest can be charged.
In terms of financing of working capital requirement of micro units under the Nayak Committee method, the current ratio works out to be:
1.33:1
1.25:1
1.20:1
1.17:1
If the ATM has not dispensed the cash but account has been debited, the dispute regarding such transactions is to be resolved by the banks within ?
one week
10 days
12 days
15 days
Mr. D Singh and Mr. K Singh are maintaining a current account in `former and survivor’ operations. Mr. K Singh (illiterate) issues a notice to the bank that the operations in the account should be stopped as there is some dispute between both of them. He also mentions that money in the account belongs to him but for operational convenience, the power to operate the account was given in favour of D Singh. What would you do with the cheque (signed by Mr. D Singh for Rs.670 favouring LIC of India) which has been presented through clearing, for payment from this account?
the cheque is of small amount and shall be paid.
the cheque is in favour of LIC of India and shall be paid
cheque will be returned due to receipt of information about dispute
cheque will be paid as K Singh’s instruction cannot be accepted so long as Mr. D Singh is alive
Your branch is having a fixed deposit receipt of Rs.2 lac in the name of B, which is to mature after one year. B defaults in payment of loan. The right of set-off can be exercised for a loan against fixed deposit receipt:
On maturity
Even before maturity
by giving 30 days notice, it can be exercised
any of the above
For the purpose of change in classification of an advances from standard to sub-standard category due to non-payment of the loan, in case of crop based agriculture advances, which of the following is taken:
two harvest seasons
two crop seasons
one crop season
two crop seasons for short duration crop and one crop season for long duration crop
An exporter has received repayment of certain bills he had sent for collection and now wants to retain the same in foreign currency:
he can open current account as EEFC account
he can open fixed deposit account as EEFC account
he can open saving bank account as EEFC account
he can open any of the above provided no interest is paid
Mr N issued cheque for Rs 8000/- and left some blank space after the amount in words and figures and gave it to his clerk. His clerk added one zero after amount written in figures and Y in the amount written in words, making it as eighty and 80000/-. The account is debited for 80000/-. Who is responsible?
there is material alteration and bank is negligent. Hence bank liable.
there is forgery due to which the bank is liable
customer is negligent in writing the cheque due to which the alteration has taken place, hence customer is liable for the loss.
since bank has paid the amount of an altered cheque and customer was negligent, the loss to be borne by both of them equally.
A loan of Rs.4 lac was sanctioned during April 2007 and it started showing irregularity in the month of Oct 2007. This account will be classified as ____ as on Mar 31, 2009:
special mention account
sub-standard account
doubtful up to one year
doubtful above 1 year but up to 3 year
RBI is required to furnish Annual Information Return to Income Tax Department where:
RBI receives an aggregates amount of Rs.2 lac or more in a year for bonds issued by RBI
RBI receives an aggregates amount of Rs.3 lac or more in a year for bonds issued by RBI
RBI receives an aggregates amount of Rs.5 lac or more in a year for bonds issued by RBI
RBI receives an aggregates amount of Rs.10 lac or more in a year for bonds issued by RBI
For service oriented micro enterprises, the investment ceiling in equipment excluding land and building is:
Rs.20 lac
Rs.3 lac
Rs.5 lac
Rs.10 lac
What is the maximum time available to a customer for lodging complaint to Ombudsman:
1 month from date of complaint made to bank and no reply received
1 month from date of complaint, reply received but customer not satisfied
1 year from date of receipt of reply from the bank but customer is not satisfied
1 year from date of lodgement of complaint with the bank + 1 month, where reply has not been received.
3 or 4
The responsibility to file particulars of charge with Registrar of Companies, for getting the charge registered is of the:
company, u/s 125 of Companies Act
bank, u/s 125 of Companies Act
bank, u/s 134 of Companies Act
company, u/s 134 of Companies Act
For door-step banking by banks, RBI has issued directives under which of the following Acts:
RBI Act
Negotiable Instrument Act
Banking Regulation Act
Shops and Establishment Act
A bank can purchase NPA from another bank, if in the books of selling bank, the account was NPA for ____:
2 years
3 years
4 years
5 years
In the group approach system of lending, the following norms have been prescribed by RBI relating to ceiling on exposure of banks:
15% of capital fund for individual borrower
40% of capital fund for borrowing group
5% for infrastructure projects
1 and 2