As per definition u/s 5 (b) of Banking Regulation Act 1934, which of the following is not correct in the context banking business:
accepting deposits and investing such deposits
banks cannot refuse to accept deposits whosoever offers
deposits are accepted from public
accepting deposits and giving loans out of such deposits
RBI has the authority under Section 22 of Reserve Bank of India Act to issue bank notes with a denomination of:
minimum Rs. 2 and maximum Rs.10000
minimum Re 1 and maximum Rs.10000
minimum Rs 2 and maximum Rs.1000
minimum Re 1 and maximum Rs.1000
The Companies Act applies to the banking companies:
all the above
in relation to their registration and winding up
insofar as the provisions are consistent with the provisions of Banking Regulation Act
irrespective whether the provisions of the Banking Regulation Act
Every banking company has to maintain in India, certain amount of assets u/s 25 of Banking Regulation Act as at:
as at the close of business on the last Friday of each quarter
as at the close of business on the last Friday of each half year
as at the close of business on the last Friday of each year
close of each half year
U/s 38 of Banking Regulation Act, who can apply to High Court for winding up of a banking company:
Registrar of companies.
Security & Exchange Board of India
Reserve Bank of India
The banking company is required to submit to RBI 3 copies of its audited balance sheet within ___ and this period can be extended by RBI for ____.
3 months, 3 months
2 months, 2 months
2 months, 1 month
3 months, 2 month
The major portion of shares of Regional Rural Banks is held by:
The authorised share capital of a nationalized bank can be maximum:
To treat a payment as a ‘payment in due course’ which of the following conditions need not be satisfied:
payment to the person in possession of the instrument
payment must be made to a customer
in good faith and without negligence
payment as per apparent tenor of the cheque
In a joint account of X and Y, a cheque is presented in clearing and paid. Later on it is found that signatures of X are genuine but that of Y are forged.
the bank is not liable if the forgery is done in connivance with the drawer
the bank is liable for forgery, even if the payment of the cheque has not been made
the bank cannot debit the account but if the forgery is in the knowledge of the customer, bank is not liable
the bank cannot debit the account of the customer. Hence the bank is liable
X appointed Y his agent and authorised Y that he can get cheques in X’s name collocted through account of Y. Later on Y misappropriated the amount of certain cheques:
despite express authority from customer, the bank is liable for conversion.
bank is not liable, as there was express authority from the customer
the bank did not take adequate precaution due to which bank is liable
the bank was negligent in accepting such instruction. Hence bank is liable
In which of the following situations, the collecting bank shall not be held liable for conversion:
cheque in the name of a proprietorship firm, which were deposited by the proprietor in his individual account
cheque in the name of partnership firm, deposited by one partner in his personal account
cheque of a large amount deposited by Y in his account although bank was aware about the poor financial position of Y
cheque deposited by X in his personal account while it was drawn in his name in his official capacity
Before making payment of a bank guarantee, the bank is to ensure that the invocation is properly made. Which of the following may not be an important element for treating the invocation as proper:
the invocation is within the claim period given in the guarantee
the amount is within the amount limit of the guarantee
the cause of action arose during the validity period
the invocation has been made by the person competent to make the invocation
Bank is required to make payment against DPG, if:
the entire amount has become due but partly paid by the borrower
the entire amount has become due for payment and not paid by the applicant (buyer)
the major portion has become due for payment and not paid by the applicant (buyer)
if one or more instalments have become due and not paid by the applicant (buyer)
In case of which of the following loan facilities, the bank becomes a guarantor:
Which of the following securities will be more preferable by a bank from cost of creating charge and maintenance of the security :
book debts of reputed companies
goods and merchandise
shares and debentures
land and building
Against which of the following types of fixed deposit receipt, the loan can be allowed by the bank to a person called X:
the FDR in the name of X kept by him as his client’s money.
the FDR issued by the bank in the name of X jointly with his wife which is discharged by both of them
the FDR issued by the bank in name of minor child of X
the FDR issued by another bank in the name of X
In which of the following types of goods, the charge pledge can be created by the borrower:
all the above type of goods
also the goods that the borrower is likely to get into his possession subsequently
the future goods also that are to be in his possession
the goods that are in possession of the borrower
Bank-B sanctioned a term loan to XYZ limited within the condition that if the borrower failed to pay 2 instalments, the entire amount of the loan will become payable immediately. If the borrower defaults in making the repayment of 2 instalments, in such case:
the bank can recover the amount of due instalments only.
such agreements are void i.e. illegal and cannot be enforced.
such agreement is against law of natural justice due to which bank cannot do so
the bank can treat the entire amount due for payment and can demand payment
After amendment to Section 17 (2) of SARFAESI Act, what new provision has been made:
borrower can approach DRT without depositing any amount but to approach DRAT against decision of DRT he has to deposit 50% of the due amount which can be reduced to NIL.
borrower can approach DRT without depositing any amount but to approach DRAT against decision of DRT he has to deposit 75% of the due amount which can be reduced to NIL.
borrower can approach DRT without depositing any amount but to approach DRAT against decision of DRT he has to deposit 50% of the due amount.
borrower can approach DRT without depositing any amount but to approach DRAT against decision of DRT he has to deposit 75% of the due amount.