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

A. He could be an endorsee of the instrument

A. He could not be payee 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 :

Chairman & Managing Directors of Nationalised Banks

Which of the following statements is incorrect?

A bill of exchange may be drawn conditionally

A bill of exchange is an instrument in writing

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

Which of the following statement matches its answer.

After a blank endorsement on an order cheque, the cheque can be negotiated further with delivery only

Bearer cheque can be negotiated with endorsement and delivery only

Order cheque can be negotiated with endorsement only

Endorsement on a bearer cheque makes it an order instrument

Legal amount in a cheque stands for

Amount in words or figures, whichever is less

Amount in words or figures, whichever is more

Who among the following is not a competent to endorse a cheque

An insolvent person on behalf of the other competent person who has given him a mandate

An illiterate person who cannot sign

Income recognition and asset classification

Income realisation and asset classification

Income recognition and asset consolidation

Interest realisation and asset classification

Interest realisation and asset consolidation

Banking codes and standards Board of India

Banking company and standards Board of India

Banking codes and strategy Board of India

Banking company and strategy Board of India

A scheduled commercial bank is one

Which is included in the Second Schedule of the RBI Act 1934

Which is included in the Banking Regulation Act, 1949

Which is registered under NI Act 1981

Payment of forged instruments is not a valid discharge for the bank of its liability because

The instrument is not a mandate of the drawer

Forgery should be detected by the bank in any case

Bank has signatures of the customer and it cannot deny his liability

If forgery is allowed, no one will be accountable for the loss

In case of collection of cheques and bills, the relationship of the banker with the customer is that of...

Bank as agent and customer principal

Bank as agent and customer trustee

Bank as trustee and customer debtor

Banker as debtor and customer creditor

Mutual funds are regulated by

Securities and Exchange Board of India (SEBI)

Association of Mutual Funds of India (AMFI)

Competition Commission of India

Insurance Business is regulated by

Insurance Regulatory and Development Authority

Securities and Exchange Board of India (SEBI)

Competition Commission of India

The Reserve Bank of India Act,1934 does not deal with

Financial supervision of banks/financial institutions

management of forex/ forex reserves

capital management and business of banks

Banking Regulation Act,1949 was enacted to regulate

cooperative land development banks

primary agricultural credit societies

Which is not the function of RBI

Opens and maintains SB accounts

Regulates Banking activities in India

Decides Bank rate, CRR and SLR from time to time

Acts as a banker to the Government

A current account customer of your branch deposits with you on September 30, 2020 a cheque dated June 22, 2020 issued by Government of India, Ministry of Rural Development for collection. The cheque can be collected as

Cannot be collected as its validity is limited to 3 months

A customer of your branch Raju deposits a cheque which he steals from another person named Raju. Your branch collects this cheque (on which the customer is having a defective title) without being aware about the defect

Collecting bank will get protection if it has complied with the requirement u/s 131

Collecting bank is responsible for conversion

Collecting bank is negligent but will get protection

Collecting bank is negligent but will not get protection

BANKING LAW AND PRACTICES QUESTIONS

Authored by BA Rajkot

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102 questions

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

1st April, 1934

1st July 1956

16th March 1949

26th March 1950

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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)

19 (2)

20 (1)

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

Statutory liquidity Ratio

Cash Reserve Ratio

Licence

Deposit

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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 (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

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