NI act / BR act Legal Aspects Quiz

Which of the following is not a main function of the Reserve Bank of India?

• Issuance of currency

• Banker to bank

• Banker to Govt

• Controlling share market

Which section of the RBI Act gives the sole right to issue currency notes?

• Section 28

• Section 22

• Section 45

• Section 17

What does a promissory note contain according to the Negotiable Instruments Act, 1881?

• Order to pay a certain sum of money

• Cheque payable on demand

• Bill of exchange

• Unconditional undertaking to pay a certain sum of money

What is meant by scheduled Bank?

• The Bank under BR Act 1949

• A Bank included in 2nd schedule of RBI Act

• The bank under Banking Company Act,1956

• All commercial banks operating in India

What is the maximum punishment under section 138 of NI Act?

• 2 Year imprisonment.

• 2 Year imprisonment or twice the amount of cheque.

• 2 Year imprisonment or twice the amount of cheque or both.

• Twice the amount of cheque.

In case of usance bills how many days grace period is allowed under sec 22 of NI Act.

• 2 days

• 3 days

• 1 days

• 4 days

A Bill of Exchange is defined u/s _____ of NI Act.

• Section 5

• Section 6

• Section 7

• Section 13

Validity period of cheque is defined in _______.

• RBI Act,1934

• SARFAESI Act

• BR ACT,1949

• NI Act,1881

Under which section of RBI Act, RBI has sole sight to issue bank notes.

• 20

• 21

• 22

• 23

Under which Act & Section RBI can give direction and do inspection of banks

• RBI Act, Section 35

• BR Act, Section 35

• RBI Act, Section 35A

• BR Act, Section 35A