BANKING LAW AND PRACTICES QUESTIONS

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 (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