BANKING LAW AND PRACTICE QUIZ

The Banking Regulation Act came into force w.e.f.

• 1st April, 1934
• 1st July 1956
• 16th March 1949
• 26th March 1950

As per Section 17 of Banking Regulation Act, 1949, every banking company incorporated in India is required to create a reserve fund and to transfer to it at least.

• 50% of profit after dividend
• 20% of profit before dividend
• 15% of total profits
• 20% of total profits

Under which section of Banking Regulation Act 1949 a banking company is prohibited to grant a loan or an advance against security of its own shares :

• 17 (2)
• 24
• 19 (2)
• 20 (1)

Section 24 of Banking Regulation Act, 1949, belongs to.....

• Statutory liquidity Ratio
• Cash Reserve Ratio
• Licence
• Deposit

As per Section 23 (1) of Banking Regulation Act 1949, a banking company is exempted from obtaining prior permission from RBI for :

• Change of premises within the same city, town or village
• Opening of an extension counter
• Providing temporary banking facilities in any institution
• Cash Reserve Ratio

Holder in due course is defined u/s…..of NI Act

• 10
• 9
• 18
• 8

The holder of a negotiable instrument is holder in due course if

(i) He receives the instrument in good faith and without negligence

(ii) He receives the instrument for lawful consideration <br

(iii) He receives the instrument before its maturity.

Which of these is correct?

• (i) and (ii) only
• (ii) and (iii) only
• (i) and (iii) only
• (i), (ii) and (iii)all

Which of the following is essential condition for constituting a person as holder of a negotiable instrument?

• A.   He could not be payee of the instrument
• A.   He could be an endorsee of the instrument
• A.   He should have received the instrument not for consideration
• A.   He has the right to get the possession of the instrument where the instrument is not in his possession

Governor of RBI is appointed by :

• Board of RBI Directors
• Chairman & Managing Directors of Nationalised Banks
• World Bank
• NABARD

Which of the following statements is incorrect?

• A bill of exchange is an instrument in writing
• A bill of exchange may be drawn conditionally
• A bill of exchange directs a certain person to pay certain amount of money
• A.   A bill of exchange is payable to the order of a certain person or to the bearer of the instrument as per NI Act