IIBF & NISM Adda

Monday, 29 July 2019

RECOLLECTED JULY 2019 IIBF ALL EXMS

In today's microfinance exam questions from,

1. Chikola group

2. Rrb bank established in the year

3. Rbi act, rrb act,

4. Bank rakyat Indonesia

5. Malegam committee recommendation

6. Shg bank linkage program

7. Sewa bank

8. Break even analysis also named as

9. As 2 deals with

10. Examples of cash flow like travel expenses interest expenses

11. 2 numericals from break even anaysis

12.average case load formula

13. Question from relationship risk

12.

Recollected Questions 21.07.2019 IT security recollected on 21.07.2019

ROBO backup

Skimmer and shimmer

RFID and Barcode shortcomings

ISO 27001

After Jillani committee 1996

What IT act took place

Downstream liability

Routers

A/B testing

VoiP eavesdropping

User level controls

PCI DSS

HIPAA

Defence in Depth

Green servers

Blade servers

E -wastes

Scavenging

ATM jitter

Mobile banking

TCP IP

VLAN

Cyptography

Steganography

IDS DNS

CLOUD computing

Threats

Vulnerability

SQL Injection

Cyber terrorism

Viruses worms

Malware

Stuxnet

Fault tolerence

Business continuity and Disaster recovery

DTP

Many case studies were there - calculations of duration,MD,convexity, mclr related problem, cal of market, credit risk weighted assets,

CTP

Certified treasurey professional questions dated 14.7.19

Friends to be honest paper was easy compared with the one dated 27.4.19

The following are the questions given

Numerical related to

FRA

Commercial paper numericals around 6-7 and also individual questions related to cp and cd such has issuers and maximum limit and minim limit and

Questions related to various measures of options : delta , gamma,rho,

Numericals on bond prices

Numericals of auctions

Dutch auction

French auction

Novation definition

Liquidity related questions

Direct quote

Reinvestment risk

Futures

Qustions related to bond yield

Transfer pricing

ECB

Option coupon bond

Zero coupon bond

The questions were mostly numericals so pleae go through the reference book

All d best friends

ISB

information System Banker Recollected questions

CyAT

CAA

Digital Signature

BCP

Digital forensics

Normalisation

Internal audit

DBA responsibility

Telecommunications system audit

Power off switches

Cyber terbunal judge or magistrate

DS reissuance

Central depository of DS

Audit trail significance

Bottom up methodology

Audit plan

BCP

IDS

Virtual keyboard

IFMS full from

EFT

RBIA

Inherent risk

Insider threat

IS Audit policy

Information security officer role

DBA responsibility

Stress testing

BCNF

Critical applications

Poor architecture system

SDLC

Prototyping model

RTO application

IT Act 2000

Punishment for copyright as per IT Act

Controller of Certifying Authorities operates the National Repository of Digital Signatures (NRDC)

Function of modem, which is not an OOP Lang. C C++ Java C#, questns abt DRP, Trojan horse, sniffing, spoofing, availability, integrity, DBMS, preventive, corrective, detective controls, BCP

DDL DML DCL TCL commands, CA CCA-Digital certificates

Digital signature complete

Cyber apellate tribunal presiding officer

System testing

Compliance testing

Substantive testing

Telecom control

Db forms

Db commands

Risk based audit

It audit

Dba roles n resp

Prototyping model

Sdlc full

Interface testing

Rbeit ltd reg it subsidiary of rbi

Non repudiation

Bot stroke worms

Certified information System Banker

13.01.2019 3 PM Batch

Moderate Difficulty

Passing Mark 60

Each question carries 1 mark ( 100 questions )

Scored 55 marks

Recollected questions

DR centre location

Data warehouse

Audit charter/policy

Is audit 5 -10 questions

RAM and cache memory

Static RAM

Metadata

Which DB model used in CBS

Characteristics of a table

Many to Many relationship in DB

Simple ,self,outer join

Adaptive maintenance

Multiplexing

Packet switching

Full Duplex method

Bridge,router,switch,gateway

Diff between router and switch

Function of osi model layers 5 questions

Which protocol used in banking http,smtp,tcp/ip

Real time processing

Emergency response

Mirror site and reciprocal agreement

Trojan horse

E money

INFINET

CFMS

SFMS

Spoofing, piggybagging

Pervasive principle in GASSP

Classification of control

Boundary sub system

Audit trail

Attenuation

Types of noise (cross talk)

False positive and negative

Firewall

Intrusion detection systems and tuning

In what circumstances user ID and password will be given to user(emergency access)

Remote Access

OS tasks

Travelling virus procedure

Public and private key encryption

ISB Recollected Questions and Exam Tips june18::::

Function of modem, which is not an OOP Lang.

C C++ Java C#, questns abt DRP,

Trojan horse, sniffing, spoofing, availability, integrity, DBMS, preventive, corrective, detective controls, BCP

International trade finance today's recollected

Its all about Limits on various transaction, FEMA Schedule:I, II, III, LRS, JV/WOS, different FC A/c and their purpose. Reading Macmillan BOOK thoroughly is sufficient to clear the Exam.

[08/07, 07:28] Ara: Vostro account

[08/07, 07:28] Ara: ECB is a form of bank loan, suppliers credit, buyer credit

[08/07, 07:28] Ara: Standby letter of credit is under ucp600 or ucp600 ,isp

[08/07, 07:28] Ara: Bill of Ladding 2 questions, export bill crystallization, guarantee maximum period, exim Bank duties 2mark, Duration of bill realisation, PCFC value above export order, deemed exporter, if domestic price increases above export price...

[08/07, 07:28] Ara: Deemed export 2 ques

[08/07, 07:28] Ara: Bank guarantee under

[08/07, 07:28] Ara: Lrs scheme available to individuals upto USD 250000 not to corporate, partnership, huf, trust

[08/07, 07:28] Ara: Buyer credit linked to Libor/ mibor

[08/07, 07:28] Ara: Documents should be presented within 21 days from

[08/07, 07:30] Ara: If the maturity date is a holiday then it should be presented before the date or after holiday

[08/07, 07:38] Ara: Merchant trade should be completed within 9 months

[08/07, 07:41] Ara: What is clean payment

[08/07, 07:41] Ara: High sea sale

[08/07, 07:42] Ara: Trade blog 1 que

[08/07, 07:43] Ara: Normal transist period is from the port to destination port or from manufacturing to destination port

[08/07, 07:47] Ara: India export rice in exchange of petrol, Diesel this is theory of comparative advantage , heckscher ohlin theory, theory of absolute advantage

[08/07, 07:50] Ara: In trade within country which is common as international trade. Dap ,Daa LC

[08/07, 08:00] Ara: Factoring forfeiting 4 questions

[08/07, 08:06] Ara: Transfer LC

[08/07, 08:11] Ara: Foreign exchange governed by dgft RBI, exim bank,

[08/07, 08:14] Ara: Lc is given on Fob value

[08/07, 08:20] Ara: If ABC company is having bank guarantee with x bank and they are entering to contract with y to supply goods and if ABC company fails what bank will do a) pay to y on the value of entered or b) pay a guarantee amount

[08/07, 08:21] Ara: Pre shipment 360 days

[08/07, 08:21] Ara: Preshipment interest is given upto 180 days

[08/07, 08:27] Ara: Bank guarantee should not be issued more than 10 yrs

[08/07, 08:29] Ara: Status holder are classified from one to five star

[08/07, 08:29] Ara: Softex is used for software export

[08/07, 08:36] Ara: Advance remittance up to usd200000

[08/07, 08:39] Ara: ABC company is dealing with goods and banking with x � bank , it buys goods from y and for y company x bank willing to finance is it a) vendor finance b) channel finance

[08/07, 08:49] Ara: Three , four star export house

[08/07, 08:54] Ara: Export of goods freely upto RS 500000

[08/07, 08:57] Ara: Project contractors after completion of project abroad may import without an authorisation good including capital goods used in project provided they have been used for atleast 1 yrs

[08/07, 08:58] Ara: Duty exemption scheme

[08/07, 08:59] Ara: Duty drawback scheme

[08/07, 09:03] Ara: Arbitration

[08/07, 09:03] Ara: Speculation

[08/07, 09:05] Ara: If on Oct 3 transaction is settled on Oct 5 assuming Oct 3,4,5 is working day this is a) spot b) forward c ) future d) ready

International Trade Finance exam yesterday.

Bill of Ladding 2 questions, export bill crystallization, guarantee maximum period, exim Bank duties 2mark, Duration of bill realisation,PCFC value above export order, deemed exporter, if domestic price increases above export price... Some more questions which I recollected.

Thanks

Trade Finance Recollected Questions: Preshipment, Post shipment Finance, PCFC, Forfaiting, EXIM Bank, FTP, Trade Blocs, ECGC Confirmation, DEPB Scheme, EPCG, Limitation Clause, ECNOS full form, Combined Transport Document, Gift Exports limit, Adv payment limit on Import, Bonafide Baggage period, Drawback, Merchanting TradeTrade, Domestic Trade types.

digital banking recollected

Jackpotting

Emv and non emv

Abps and aeps

Financial exclusion concept

10 questions on cards

Frauds like skimming etc

Risk based 5 questions

Mpin based 3 questions

Card dimension

8 straight forward questions from book

Confusing ones as all questions have 2 anwers type...be carefull before marking answers

Digital banking todays recollected questions

Otp full from

Pharming attack on internet website's

Mom and pop means

Technology solution in India which is not part of FI

Cyber mugging

X2x service code

Pos terminals related questions

Dimensions of plastic card

Difference between gprs pos and pstn pos

First pos mc developer in india

Chargeback related questions

Jackpotting in atm means

Meltdown and spectre means

Nfs managed by npci situated at

In Forex settlement the rupee leg is settled through

If I recollect I will append pls

Ccp-

Questions were conceptual. Really difficult questions from LG and LC. Questions from Syndication and MBA -5. LC - no numericals only conceptual case study 5 no. Syndication and Consortium -5 . EPS -5, IBC -5 , and questions covering the whole book. Interesting fact - none of this answer was the right answer nearly 15 -20 questions. Very confusioning

· Cleared CCP today.. Questions were from msme service n manufacturing sector, Npv and irr difference, eps calculation, calculation of tnw-1, minor question-2,case study on huf , bcsbi -2 questions, case study on lc and asked to select type of lc, max period of BG, deferred payment guarantee, cersai is done under, cersai is used for, break even point calculation-1,standard deviation on investment,time value for money etc...

· Forex operations review and Recollected exam

· Usance Period

· sanction of fresh/enhanced export credit limits should be made within 45

· Limit for export under OPGSP

· Schedule III of FEMA

· Remittance exceeding USD10Mio per project consultancy service in respect of Infra Projects

· commission to an agents abroad for sale of residential flats-USD25000 or 5% of inward remittance

· reimbursement of pre-incorporation expenses

· Donation - 1% or USD 5Mio

· Pan mandatory for all LRS remittance

· LRS reporting - Daily Basis

· LRS not applicable to HUF,Partnership form, Trust

· 2 new Incoterms incorporated in 2010

· export realisation period

· collectin bill

· rate application from transfer from NRE to FCNR

· who issue SOFTEX form

· fedai last meetings

· advance remittances toward imports of services are permitter without any limit

· question on accruals in the account should be converted into rupees into rupee on last day of succeeding

· month

· who can open SNRR account

· How much INR can be taken outside Inida

· Export of gift articles not exceeding 5 lacs

· NRO account Foreign nationals should not exceed more than 6 months

· Vostro account is funded through which Form1/2/3/4

· when we sent MT707

· Travellers proceedings to which countries not exceeding USD 300 per visit

· Target of FTP2015-20 export target of $900 billion by 2019-20

· Article 13 of UCP 600

· Green clause credit

· Commercial invoice should be signed and dated

· 10-12 questions on ECB,FDI,ODI

· 3-4 questions on FTP

· Questions asked from UCP 600, LOC, LRS, FTP 2015- 2020, ECGC, PTA, ECB, etc.

· Cleard Foreign Exchange Operations Exam today..paper was little bit tricky..no numericals, no case studies..just theoretical but concept based questions..ECB,FTP,LC,LRS,ECGC,EXIM, pre & post shipment are the some areas which covers more than half of the question paper.

· forex operation question 27.10.2018

· fro nre to fcnr which rate apply

· as per latest what is mandatory for lrs "pan"

· how much invest in jv - 400%

· coprporate donate what amount - 1% of forex earning or $5 m which ever is less

· one from high seas sale

· marine insurance policy indemnity se related

· fedai rate declare which rate in month end

· one is ralated to var and fbil

· if forward is more than spot then what - interest on base less than counter

· regarding lou and loc - ans is both are dicontinued

· one is if there is no loc and lou then what is the option for importer

· one forfaiting

· what is requirement to be an exporter

· if account is standard then in which case there is no need to report ecgc before disbursement

· ek bpo se related

· one is from eefc

· one is for tt buying

· ftp target for 2020

· advane under import of services without guarntee - $ 5 lakh

· condition for granting loan against nri deposit

· lc amendment- mt707

· one from urbdg 758

· urr 722

· one from demand guarantee

· standby lc

· one is lc term prevail against sanction ye ans h question i forget

· if lc not require transport , invoice then what - option given not remember

· incoter added in 2010 - dap dat

· one is if in lc there is no presentation date only expiry given then what will be presentation date

· for what we can not issue lc

· if lc is in fob then import licence what we endorse option - cif exw fob

· who issue softex forms

· one is edi port - sdf

· if some mistake in shippong bill then what will appraising officer do - mark and point to commisioner

· ~forex operation question 27.10.2018

· fro nre to fcnr which rate apply

· as per latest what is mandatory for lrs "pan"

· how much invest in jv - 400%

· coprporate donate what amount - 1% of forex earning or $5 m which ever is less

· one from high seas sale

· marine insurance policy indemnity se related

· fedai rate declare which rate in month end

· one is ralated to var and fbil

· if forward is more than spot then what - interest on base less than counter

· regarding lou and loc - ans is both are dicontinued

· one is if there is no loc and lou then what is the option for importer

· one forfaiting

· what is requirement to be an exporter

· if account is standard then in which case there is no need to report ecgc before disbursement

· ek bpo se related

· one is from eefc

· one is for tt buying

· ftp target for 2020

· advane under import of services without guarntee - $ 5 lakh

· condition for granting loan against nri deposit

· lc amendment- mt707

· one from urbdg 758

· urr 722

· one from demand guarantee

· standby lc

· one is lc term prevail against sanction ye ans h question i forget

· if lc not require transport , invoice then what - option given not remember

· incoter added in 2010 - dap dat

· one is if in lc there is no presentation date only expiry given then what will be presentation date

· for what we can not issue lc

· if lc is in fob then import licence what we endorse option - cif exw fob

· who issue softex forms

· one is edi port - sdf

· if some mistake in shippong bill then what will appraising officer do - mark and point to commisioner

· Foreign Exchange Operations Recollected question (27/10/18)-

· 1. LRS scheme availble to?

· 2. question abt Gift/donation.

· 3. one abt medical treatment?

· 4. PAN mandatory in LRS?

· 5. travellers limit 3000USD per visit or per annum?

· 6. foreign currency not permissible to- Nepal

· 7. forward contract limit- USD 1 million

· 8. question on RFC ac.

· 9. direct question on PIO.

· 10. whi can open SNRR ac

· 11. question abt prohibited investment.

· 12. what is green clause lc.

· 13. question on tolerance limit in Lc.

· 14. question abt advising bank.

· 15. question abt MT707.

· 16. 3-4 question abt bill of lading.

· 17. 2 new INCOTERMS.

· 18. SOFTEX form.

· 19. export to warehouse question.

· 20. 5-7 indirect question abt pre and post shipment.

· 21. question on forfaiting.

· 22. question on bill of entry.

· 23. 2-3 question on trade credit.

· 24. 1 question abt nature of transaction and rate applied.

· 25. 1 abt ECIB(WTPC)

· 26. 1 question on standby credit.

· 27. LRS statement submission.

· 28. normal transit period

· 29. ECB cost ceiling.

Sunday, 28 July 2019

CCP mcqs

Certified credit Professionals 60 MCQs

01. Statutory corporations are controlled by which act for credit management.

a) Indian contract act

b) Company act

c) Act that created them

d) Indian partnership act

e) Indian trust act and public act

Ans: c

02. Which one of the following is not a non fund base credit?

a) Letter of credit

b) Bill discounting

c) Co-acceptance of bills

d) Forward contract

e) Derivatives

Ans: b

03. Mr. Shyam has a house in a rural village, very near to Agra. His house is very old and

required some repairing work. So, Mr. Shyam visited Agra main branch for a loan, how much

amount of loan he can avail from bank under housing finance.

a) 1 lakh

b) 2 Lakh

c) 5 Lakh

d) 10 Lakh

e) 20 Lakh

Ans: a

04. Small enterprises advance and export credit does not financed by both public sector and

PSU (export does not comes under priority sector advance) what percentage of small

enterprises advance and export credit is supposed to be given ___ and ___ respectively.

a) 40 and 32 %

b) 18 and 10%

c) 10 and 12%

d) No target and 12%

e) 10% and no target

Ans: c

05. RBI to free the landing rates of scheduled commercial banks for credit limit over ___.

a) 01 Lakh

b) 02 Lakh

c) 05 lakh

d) 10 Lakh

e) 20 Lakh

Ans: b

06. BPLR system of lending rates replaced by base rate system it was effected from ____.

a) 01 Jun 2010

b) 01 Jul 2011

c) 01 Jan 2010

d) 01 Jul 2010

e) 01 Jul 2003

Ans: d

07. No penal interest should be charged with effect from 10 Oct 2000 to borrower�s loan

under priority sector up to Rs _____.

a) 10000

b) 20000

c) 25000

d) 50000

Ans: c

08. No collateral security is required loan under MSME both manufacturing and production and

providing or rendering of services up to Rs ___.

a) 1 lakh

b) 2 lakh

c) 5 lakh

d) 10 lakh

e) 20 lakh

Ans: C

09. Which accounting standard makes it mandatory for some enterprises to prepare cash Flow

Statement for the accounting period?

a) AS-1

b) AS-3

c) AS-9

d) AS-17

Ans: b

10. Industries & business enterprises whose turnover for the accounting period exceeds Rs.

50 crore has to submit segment-wise reporting as per _____.

a) AS-3

b) AS-7

c) AS-17

d) AS-21

e) AS-22

ANS: C

11. MR. Rohit want to invest some money in XYZ co., he want to purchase some stocks of this

co. How Mr. Rohit can assess to financial statement of the XYZ co.

a) By balance sheet

b) By EPS

c) By financial statement

d) all

Ans: d (EPS- earning per Share)

12. Basic concept used in preparing of financial statements is given below pick up the odd

one.

a) Entity concept

b) Money market concept

c) Going concern concept

d) Dual aspect concept

e) Accrual concept

ANS: b

13. As per company act the maximum period of financial period is 15 months, MR Charles is

GM of ABC co. due to some contingency he is unable to prepare his Financial statement so he

want to extend his financial to another 03 months i.e. 18 months maximum period of financial

statement so MR Charles has to approach to whom for such extension.

a) Income Tex office

b) Reserve bank of India

c) Accountant general of region

d) Registrar of company

Ans: d

14. The companies Act classifies liabilities which shown on the left side of the horizontal form

pick up the odd one.

a) Share capital

b) Reserve & surplus

c) Miscellaneous expenditure

d) Secured & unsecured loans

e) Current liability & provisions

Ans: c

15. Revenue reserve represents accumulated retained earnings from the profits of normal

business operations. These are held in various forms that are given below pick up odd one

___.

a) General reserve

b) Investment allowance reserve

c) Advance payment received

d) Capital redemption reserve

e) Dividend equalization reserve

Ans: c

16. 17. Current liabilities and provisions as per classification under the co. act consist of the

following except one given below.

a) Advance payments received

b) Accrued expenses

c) Pre-paid expenses

d) Unclaimed dividend & dividends

e) Provisions for taxes

f) Gratuity and pensions

Ans: c

17. Which committee has prescribed inventory norms for various industries?

a) Narasimham committee

b) Raghawan committee

c) Tandon committee

d) Chakraborty committee

Ans: c

18. ____ % of small enterprises advances should go to micro enterprises in case of foreign

banks.

a) 20

b) 40

c) 60

d) 80

Ans: c

19. In order to avoid the problem in delay in realization of bills, bank may take advantage of

improved computer/communication network ___.

a) GUI

b) SFMS

c) ETF

d) SWIFT

ANS: b

20. Bank guarantee should normally have a maturity of more than ___.

a) 5 years

b) 10 years

c) 15 years

d) 20 years

e) 25 years

Ans: b

21. The conduct of LC business is governed by��..

a) RBI

b) IRDA

c) UCPDC 600

d) AMFA

e) GOI

Ans: c

22. What should bank do if the owner of the collateral security is someone other than the

borrower?

a) Reject the loan

b) Transfer security to the name of borrower

c) He should become first guarantor of the loan and create charge over the security

d) Security should be hypothecated to the banker

Ans: c

23. What bank should do to avoid asset-liability maturity mismatch that may arise out

extending long tenor to infrastructure projects.

a) Return on investment

b) break- even analysis

c) Liquidity support from IDFC

d) Take-out financing arrangement

e) Sensitivity analysis

Ans: d

24. Frequency of review should vary depending on the magnitude of risk for the average risk

account.

a) 01 month

b) 03 months

c) 06 Months

d) 12 Months

Ans: c

25. In case of company, the charge should be registered with ROC within ___ days from the

date of execution of documents.

a) 15 days

b) 30 days

c) 45 days

d) 2 m

Ans: b

26. What is Priority sector target of Direct & Indirect Agriculture for Domestic banks?

a) 13.5% of ANBC or Off Balance Sheet Items whichever is higher. 4.5% for Indirect Agri.

b) 10% of anbc or 6% for indirect agri

c) 12% of anbc or 4.5% for indirect agri

d) No target

Ans: a (it is 18% in total 13.5 % is direct Ans 4.5% is indirect agric)

27. What are targets and sub-targets of DRI advances?

a) 1% of total outstanding advances of previous year

b) Out of which 40% should go to SC/St

c) 2/3rd must route though Rural and Semi Urban branches

d) All of these

ANS: d

28. What are prudential norms for individuals and Groups as per RBI guidelines? Pick up odd

one.

a) Individuals Groups General 15% of Capital Funds

b) 40% of Capital Funds of borrower group

c) Infrastructure 20% of Capital Funds single borrower

d) 50% of Capital Fund to gp infrastructure project

e) Oil Companies 25% of Capital Funds

f) All correct

ANS: f

29. Monetary and Credit policy is issued by RBI how many times in a year?

a) Monetary Policy is issued annually

b) With quarterly review

c) Credit Policy twice a year

d) All of these

Ans: d

30. RBI has restricted bank to finance against/to _______________.

a) Bank�s own shares

b) Relatives of Directors and Senior Officers

c) Sensitive commodities under selective control measures

d) FDRs of other banks, CDs, Companies for buy back of shares and Industries consuming

Ozone Depleting Substance (ODS)

e) All of these

Ans: e

31. Explain Delivery of credit for WC limits of 10 crore and above.

a) CC component -20% & WCTL component-80%

b) WCTL component-80% & CC Components-20%

c) WCTL components-50% & CC Components-50%

d) CC Components-15% & WCTL components-85%

ANS: a- The proportion is not fixed but is flexible according to requirement of borrower.

32. What are provisioning norms for Standard Assets? Pick up odd one.

a) Direct SME and Direct Agriculture 0.25%

b) Others 0.40%

c) Commercial Real Estate 1%

d) Teaser Housing Loans 2%

e) None of these

Ans: e (It is Classification Rate of provision)

33. In how many years, Foreign banks with 20 branches and above in India need to achieve

PS target of 40%?

a) 2 years

b) 3 years

c) 4 years

d) 5 years

e) 7 years

Ans: d -starting from 1.4.2013 up to 1.4.2018.

34. What is ANBC?

a) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + Investment

in Non-SLR bonds under HTM category + other investments eligible to be treated as PS

b) Bank Credit in India + Investment in Non-SLR bonds under HTM category + other

investments eligible to be treated as PS

c) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + Investment

in Non-SLR bonds under HTM category

d) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + other

investments eligible to be treated as PS.

Ans: b

(Now amended) as per http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7460&Mode=0

35. Base Rate is determined in each bank by ___.

a) ALCO

b) BPLR

c) ALM

d) DSCR

e) SFMS

Ans: a (Asset Liability Management Committee)

36. The target given for advances to weaker sections in percentage of ANBC is ___.

a) 10% for domestic banks

b) 12% for foreign banks

c) No target for domestic banks

d) 10% for foreign banks

Ans: a

37. Mark the incorrect statement.

a) No target is given to domestic banks for small enterprise advances

b) No target is given for agriculture advances in for foreign banks

c) Export credit does not form a part of priority sector for domestic banks

d) Export credit does not form a part of priority sector for foreign banks

Ans: d

38. Gain on revaluation of asset is a ____.

a) General reserve

b) Investment allowance reserve

c) Capital reserve

d) Revenue reserve

Ans: c

39. Banks can file a civil suit for recovery of their dues in civil courts. This option is used for

dues ____.

a) Up to 5 lacs

b) Up to 10 lacs

c) Above 10 lacs only

d) Above 20 lacs only

Ans: c

40. What are provisioning norms for NPAs? Classification of assets Provision on Secured

Provision on Unsecured

a) Sub-Standard 15% 25%

b) Doubtful (D1) 25% 100%

c) Doubtful (D2) 40% 100%

d) Doubtful (D3) 100% 100%

e) Loss Assets 100% 100%

f) All correct

Ans: f

41. You are a loan in charge of ABC one of your a/c of personal loan in the name of Mr.

subhash is not paying his dues in time lots of reminder have been send by you for recovery ,

you have approached him for rehabilitation, he has agreed for that. What will be next step?

a) Rescheduling/restructuring

b) Legal action

c) Exit from the account

d) Compromise

e) Write off

Ans: d

42. Lok adalat (peoples� court) at present resoling issue of NPAs, the enhanced limit from

Aug 2004 is ___.

a) 5 lakh

b) 10 lakh

c) 20 lakh

d) 25 lakh

e) 25 lakh above

Ans: 20

43. Banks and FIs for expediting the recovery cases to DRTs (Debt Recovery Tribunals) for

NPAs value in excess of ___.

a) 05 lakh

b) 10 lakh

c) 20 lakh

d) 25 lakh

e) 25 lakh above

Ans: b

44. SARFAESI Act 2002 has been extended to cover co-operative banks by notitification dated

___.

a) 21 June 2002

b) 21 Jul 2002

c) 21 Jul 2010

d) 28 Jan 2003

e) 01 Jan 2003

Ans: d

45. CDR is a ____ mechanism.

a) Statutory

b) Non-statutory

c) Core

d) None of these

Ans: b (Corporate Debt Restructuring)

46. Define Small Business on the basis of annual Turnover?

Ans. Whose Annual turnover is less than 50 crore.

47. How will you define Retail Customers?

Ans. Borrowers with exposure of more than 5.00 crore

48. What is Priority sector target of Direct & Indirect Agriculture for Domestic banks?

Ans. 13.5% of ANBC or Off Balance Sheet Items whichever is higher. 4.5% for Indirect Agri.

49. What are targets and sub-targets of DRI advances?

Ans. 1% of total outstanding advances of previous year. Out of which 40% should go to SC/St

and 2/3rd must route though Rural and Semi Urban branches.

50. Priority Sector Target For Housing Loan

Ans. Housing Loan ----Rs. 25 lac for Metro stations having population 10.00 lac and above. Rs.

15 Lac for other cities.

For Repair-----------up to 2.00 (Rural and SU) and Rs. 5.00 lac (Urban and Metro)

51. Define Small and Marginal farmer.

Ans. Farmers having land up to 1 hector are Marginal Farmers and others having land up to 2

Hector are Small Farmers.

52. Define Micro, Small and medium for manufacturing and service units.

Ans. Investment in Plant and Machinery for Manufacturing Units

Investment in Equipment For Service Units

Micro Up To Rs. 25 lac Up To Rs. 10 lac

Small Up To Rs. 5.00 crore Up to Rs. 2.00 crore

Medium Up To Rs. 10.00 crore Up To Rs. 5.00 crore

53. What are provisioning norms for NPAs?

Classification of assets Provision on Secured Provision on Unsecured

Sub-Standard 15% 25%

Doubtful (D1) 25% 100%

Doubtful (D2) 40% 100%

Doubtful (D3) 100% 100%

Loss Assets 100% 100%

54. What are Prudential norms for individuals and Groups as per RBI guidelines?

Ans. Individuals Groups

General 15% of Capital Funds 40% of Capital Funds

Infrastructure 20% of Capital Funds 50% of Capital Funds

Oil Companies 25% of Capital Funds

55. How much amount of loan can be sanctioned to Agriculture and SME without Collateral?

Ans. Agriculture --------------1.00 lac

SME----------------------10.00 lac

56. Monetary and Credit policy is issued by RBI how many times in a year?

Ans. Monetary Policy is issued annually with quarterly review and credit Policy twice a year.

57. RBI has restricted bank to finance against/to _______________?

Ans.

1. Bank�s own shares

2. Relatives of Directors and Senior Officers.

3. Sensitive commodities under selective contro measures.

4. FDRs of other banks, CDs, Companies for buy back of shares and Industries consuming

Ozone Depleting Substance (ODS)

58. Explain Delivery of credit for WC limits of 10 crore and above.

Ans. CC component --------20%

WCTL component-----80%

The proportion is not fixed but is flexible according to requirement of borrower.

59. What are provisioning norms for Standard Assets?

Ans. Classification Rate of provision

Direct SME and Direct Agriculture 0.25%

Others 0.40%

Commercial Real Estate 1%

Teaser Housing Loans 2%

60. What are PS targets for Micro and Small Enterprises?

Ans. All MSE loans will be treated as PS. But sub-targets within overall MSE loans are as

under:

40% 20% 40%

Manufacturing units

having Investment in Plant and Machinery

Up to Rs. 5.00 lac

Above 5.00 up Rs. 25.00 lac

Above 25.00 lac

Service Units having Investment in Equipment

Up to Rs. 2.00 lac

Above Rs. 10.00 lac

Above Rs. 10.00 lac

61. What are PS targets for Foreign Banks having less than 20 branches in India?

Ans. Total Priority Sector 32% of ANBC or Off Balance Sheet Items (Higher)

Agriculture No specific target but forms part of Total PS

MSE units No specific target but forms part of Total PS

Export No specific target but forms part of Total PS

Weaker sector No specific target but forms part of Total PS

62. In how many years, Foreign banks with 20 branches and above in India need to achieve

PS target of 40%?

Ans. 5 years starting from 1.4.2013 up to 1.4.2018.

63. What are PS targets of weaker sector for Domestic banks and Foreign banks having 20

and above branches in India?

Ans. 10% of ANBC or Off Balance Sheet Items whichever is higher.

64. What is ANBC?

Ans. Bank Credit in India + Bills Rediscounted with RBI/other approved institutions +

Investment in non-SLR bonds under HTM category + other investments eligible to be treated

as PS.

65. Base Rate is determined in each bank by ____.

Ans. Asset Liability Management Committee (ALCO)Top of Form

Preparation strategy for jaiib /caiib

DEAR JAIIB/CAIIB ASPIRANTS.
Preparation Strategy & Study Plan for JAIIB/CAIIB Exam..

JAIIB/CAIIB Exam needs some dedicated preparation to crack the exam (Especially for the Non-Commerce Graduates). Many young bankers prepare for they exam only during the Last Week. Then they write 1Paper after getting Low Marks, they simply give up the attempt. Some take 2days leave before the Exam & Prepare for it eventually they fail because of shortage of 4-5 Marks. These strategies may work for 5 talent Bankers but not for all. After your busy working hours daily you've to spend some time for preparation of the exam. Since most of you are very new to the Banking Industry & Its concepts. You need regular revisions to familiarise with the concept. So all it needs a self disciplined & determined mind to prepare for the Exam.

-Allocation of Study Time: Daily You need to spend at least 1-2 hours a day for preparation of the Exam. Cramming before the Exam Night or before 2days won't help for understanding the information. It may help for 5 direct questions but it won't be useful for complex questions. Also You wont have enough time to complete the syllabus & will lead to anxiety & stress. Sacrificing your sleep before the exam night will also make you counterproductive so it better to study every day.
- Importance of Studying Daily: Studying daily & revising regularly helps to familiarise with concepts. It also helps to understand the info. Having a study routine is not only helpful for exam but also improves your reading habit which every Banker needs, as your industry is very dynamic. In hectic banking hours finding time for continuously 2 hours a daily is very hard. But having small sessions of 30-40 mins thrice in a day is easy to find. In the era of smart phones, you can study anything at anywhere so when you find a spare time please use it.
- Study Material: For Preparation, I strictly recommend the 3 comprehensive courseware developed by IIBF, published by MacMillan for each

How to clear Jaiib

How To Clear JAIIB Exam
Let us talk about JAIIB passing marks criteria, passing marks, jaiib study materials and how to pass jaiib exam easily.

JAIIB & CAIIB are 2 flagship Course of Indian Institute of Banking and Finance commonly known as IIBF, an Institute for professional excellence in the field of banking and finance. JAIIB/CAIIB Exam is conducted twice in a year. The course is based on various acts, latest circular and current practices followed by banks. JAIIB aims at providing maximum level of basic knowledge in banking and financial systems, banking technology, customer relations, basic accountancy and legal aspects necessary for carrying out day to day banking operations whereas CAIIB aims at providing advanced knowledge necessary for better decision making covering risk, financial and general bank manageme
How to clear JAIIB Exam
Cracking these exams without preparation is tough task and it is fact that bankers do not get enough time to prepare for such exam that too serving duty for 10 hrs. Hence most of the candidates appear in such examinations with last minute preparation with fire fighting situation. However with a proper planning of study on routine basis such exam can easily be cracked.

Passing marks for JAIIB are 50% aggregate and 45% in each subject.

Simple steps to prepare for the JAIIB exam

1. Get the right Books

2. Know your syllabus

3. Make a strategy for studying

4. Practice and attempt some mock tests for JAIIB

Subject Wise Tips:

Principles and practices of banking

Concentrate on Module A and Module D which can be easily understood.
Module A will give you 20 marks approximately, simply go through my blog in which i covered the topics in a very lucid manner keeping in mind both JAIIB and CAIIB.
In module A cover banking regulation, Retail Banking, Wholesale banking Mutual Funds–AMFI, CapitalMarkets–SEBI, insurance-IRDAI, Factoring&Forfaiting Services, Basel Norms for Banking
In Module B read key concepts keeping in mind the important headings like Payment and Collection of Cheques, Bankers Rights, Banker Customer Relationship
Accounting and Finance

Don’t read McMillan book line by line, just go through summary and MCQ’s.
It is the toughest of the three and hence need special attention and more time should be devoted for this paper.

Learn to use calculator to solve complex problems with 9 to the power 60, soon I will update some techniques, keep following me.
Trick here is to prepare numericals because they are mostly of 2 marks as you might be knowing that Jaiib includes 0.5 marks, 1 marks and 2 marks questions.

Start by numericals of Foreign Exchange topic as they are easier and direct. Ratio analysis, Double Entry system, Bond valuation are important topics.
Follow youtube for each and every topic and prepare notes for every topic for ready reference.
Be through with the formulas like present value, future value, NPV, bond valuation, sinking fund, current ratio, quick ratio, depreciation, annuities & EMI which I will be covering in my blog in near future.
Legal and Regulatory Aspects of Banking

It is of medium difficulty level but is very lengthy and purely theoretical subject. Don’t read McMillan book line by line, just go through summary and MCQ’s.
Module A is easy when compared to remaining – Min 10 marks from this module.
Module C and D deals with various acts, simple to understand and important acts are partnership act, consumer protection act, banking ombudsman, SARFESI Act.
Finally, take up the exam seriously have a daily routine of spending 1 hour per day. you can clear the exam with ease

Saturday, 27 July 2019

CMA data from s CCP exam

CMA DATA FORMS

What reports are covered ?

It covers following statements:

1. Details of existing and proposed fund limit: In this report, details about your current financial condition, borrowed fund and proposed fund are covered.If the business is new, proposed data is required to be given.

2. Operating statement: You are required to show past 2 years and future 3 years ( Proposed) operating statements. There may be some changes as per loan needed and business nature.The profit and loss account should be presented here.

3. Analysis of balance sheet: Details about your balance sheets of past years are required to show. It is also required to show proposed balance sheet data to show a picture of your future business plan. Details about current assets, fixed assets, current and long-term liabilities are presented in this statement.

4. Comparative statements of current assets and liabilities: This statement describes the viability of your working capital cycle.

5. Calculation of MPBF: Calculation of maximum permissible bank finance. This statement shows the capacity of the borrower to borrow money. It depends on two methods which are dependent on working capital.

6. Fund flow statements: This statement shows the fund flow statements for current and future years. It shows the fund utilisation and sources of funds.The statement is important because it highlights the utilization of fund. To make sure the bank that you are using the fund for the purpose you have borrowed.

7. Ratio analysis: This is also one of the long and important statements of CMA data.It covers key ratios. Some ratios are the current ratio, MPBF, Net worth ratio, quick ratios, turnover ratios, debt-equity ratios, DSCR etc.

No same report for all businesses:

There are different business types and according to their business nature and size, CMA report is prepared. It is not similar for all businesses. Similarly, CMA report is prepared as per nature of the borrowed funds. The data is different for the working capital loan or for CC or for CMA data for the bank guarantee.

What is the benefit of submitting CMA report?

By submitting CMA data report with right ratios and proper presentation of usage of funds, your chances of getting the loan has been increased. Provided you follow other procedures and requirements of banks.

CMA ( Credit Monitoring arrangement) data preparation does not mean only filling data but it requires deep knowledge of finance

Wednesday, 24 July 2019

Certified credit professionals numericals

Assets
Net Fixed Assets - 800
Inventories - 300
Preliminary Expenses - 100
Receivables - 150
Investment In Govt. Secu - 50
Total Assets - 1400
Liabilities
Equity Capital - 200
Preference Capital - 100
Term Loan - 600
Bank C/C - 400
Sundry Creditors - 100
Total Liabilities – 1400
1. Debt Equity Ratio = ?
a. 1:1
b. 1:2
c. 2:1
d. 2:3
Ans - c
Explanation :
600 / (200+100) = 2 : 1
2. Tangible Net Worth = ?
a. 100
b. 200
c. 300
d. 400
Ans - b
Explanation :
Only equity Capital i.e. = 200
3. Total Liabilities to Tangible Net Worth Ratio = ?
a. 7:2
b. 11:2
c. 13:2
d. 15:2
Ans - b
Explanation :
Total Outside Liabilities / Total Tangible Net Worth : (600+400+100) / 200 = 11 : 2
4. Current Ratio = ?
a. 1:1
b. 1:2
c. 2:1
d. 3:1
Ans - a

Explanation :
(300 + 150 + 50 ) / (400 + 100 ) = 1 : 1

Q.2

Assets

Net Fixed Assets - 265

Cash - 1

Receivables - 125

Stocks - 128

Prepaid Expenses - 1

Intangible Assets - 30

Total - 550

Liabilities

Capital + Reserves - 355

P & L Credit Balance - 7

Loan From S F C - 100

Bank Overdraft - 38

Creditors - 26

Provision of Tax - 9

Proposed Dividend - 15

Total - 550

1. Current Ratio = ?

= (1+125 +128+1) / (38+26+9+15)

= 255/88

= 2.89 : 1

2. Quick Ratio = ?

(125+1)/88

= 1.43 : 11

3. Debt Equity Ratio = ?

= LTL / Tangible NW

= 100 / (362 – 30)

= 100 / 332

= 0.30 : 1

4. Proprietary Ratio = ?

= (T NW / Tangible Assets) x 100

= [(362 - 30 ) / (550 – 30)] x 100

= (332 / 520) x 100

= 64%

5. Net Working Capital = ?

= CA - CL

= 255 - 88

= 167

6. If Net Sales is Rs.15 Lac, then What would be the Stock Turnover Ratio in Times ?

= Net Sales / Average Inventories/Stock

= 1500 / 128

= 12 times approximately

7. What is the Debtors Velocity Ratio if the sales are Rs. 15 Lac?

= (Average Debtors / Net Sales) x 12

= (125 / 1500) x 12

= 1 month

8. What is the Creditors Velocity Ratio if Purchases are Rs.10.5 Lac?

= (Average Creditors / Purchases ) x 12

= (26 / 1050) x 12

= 0.3 months

.............................................

Q.3 Current Ratio of a firm is 1 : 1. What will be the Net Working Capital ?

a. 0

b. 1

c. 100

d. 200

Ans - a

Explanation :

It suggest that the Current Assets is equal to Current Liabilities hence the NWC would be

0

(since NWC = C.A - C.L)

.............................................

Q.4 Suppose Current Ratio is 4 : 1. NWC is Rs.30,000/-. What is the amount of Current

Assets ?

a. 10000

b. 30000

c. 40000

d. 50000

Ans - c

Explanation :

Let Current Liabilities = a

4a - 1a = 30,000

a = 10,000 i.e. Current Liabilities is Rs.10,000

Hence Current Assets would be

4a = 4 x 10,000 = Rs.40,000/-

.............................................

Q.5 The amount of Term Loan installment is Rs.10000/ per month, monthly average interest

on TL is Rs.5000/-. If the amount of Depreciation is Rs.30,000/- p.a. and PAT is

Rs.2,70,000/-. What would be the DSCR ?

a. 1

b. 1.5

c. 2

d. 2.5

Ans - C

Explanation :

DSCR = (PAT + Depr + Annual Intt.) / Annual Intt + Annual Installment

= (270000 + 30000 + 60000 ) / 60000 + 12000

= 360000 / 180000

= 2

.............................................

Q. 6 A Company has Net Worth of Rs.5 Lac, Term Liabilities of Rs.10 Lac. Fixed Assets worth

RS.16 Lac and Current Assets are Rs.25 Lac. There is no intangible Assets or other Non

Current Assets. Calculate its Net Working Capital.

a. 1 lac

b. 2 lac

c. - 1 lac

d. - 2 lac

Ans - c

Explanation :

Total Assets = 16 + 25 = Rs. 41 Lac

Total Liabilities = NW + LTL + CL = 5 + 10 + CL = 41 Lac

Current Liabilities = 41 – 15 = 26 Lac

Therefore Net Working Capital = CA – CL = 25 – 26 = (-) 1 Lac

.............................................

Q. 7 Merchandise costs - Rs. 250000, Gross Profit - Rs. 23000, Net Profit - Rs. 15000. Find

the amount of sales.

a. 227000

b. 235000

c. 265000

d. 273000

Ans - d

Explanation :

Amount of sales = Merchandise costs + Gross Profit

= 250000 + 23000

= 273000

.............................................

Q.8 Total Liabilities of a firm is Rs.100 Lac and Current Ratio is 1.5 : 1. If Fixed Assets and

Other Non Current Assets are to the tune of Rs. 70 Lac and Debt Equity Ratio being 3 :

1. What would be the Long Term Liabilities?

a. 40 Lacs

b. 60 Lacs

c. 80 Lacs

d. 100 Lacs

Ans - b

Explanation :

Total Assets = Total Liabilities = 100 Lac

Current Asset = Total Assets - Non Current Assets

= Rs. 100 L - Rs. 70 L

= Rs. 30 L

If the Current Ratio is 1.5 : 1

then Current Liabilities works out to be Rs. 20 Lac.

That means, Net Worth + Long Term Liabilities = Rs. 80 Lacs.

If the Debt Equity Ratio is 3 : 1,

then Debt works out to be Rs. 60 Lacs and equity Rs. 20 Lacs.

Therefore the Long Term Liabilities would be Rs.60 Lac.

.............................................

Q.9 Current Ratio = 1.2 : 1.

Total of balance sheet being Rs.22 Lac.

The amount of Fixed Assets + Non Current Assets is Rs. 10 Lac.

What would be the Current Liabilities?

a. 10 Lacs

b. b. 12 Lacs

c. 16 Lacs

d. 22 Lacs

Ans - a

Explanation :

Total Assets is Rs.22 Lac.

Fixed Assets + Non Current Assets is Rs. 10 Lac

Then Current Assets = 22 – 10 = Rs. 12 Lac.

Current Ratio = 1.2 : 1

Current Liabilities = Rs. 10 Lac

.............................................

Q.10 M/s Raj&co's balance sheet included the following accounts:

Cash: 10,000

Accounts Receivable: 5,000

Inventory: 5,000

Stock Investments: 1,000

Prepaid taxes: 500

Current Liabilities: 15,000

Find the Quick Ratio

Quick Ratio = Cash + Cash Equivalents + Short Term Investments + Marketable

Securities + Accounts Receivable) / Current Liabilities

= (10000+5000+1000) / 15000

= 16000 / 15000

= 1.07

.................................

Q.11 M/s Raj&co's balance sheet included the following accounts:

Inventory : 5,000

Prepaid taxes : 500

Total Current Assets : 21,500

Current Liabilities : 15,000

Find the Quick Ratio

Quick Ratio = (Current assets – Inventory - Advances - Prepayments Current Liabilities) /

Current Liabilities

= (21500 - 5000 - 500) / 15000

= 16000 / 15000

= 1.07

.................................

Q.12 XYZ Pvt Ltd has the following assets and liabilities as on 31st March 2015 (in Lakhs) :

Non Current Assets

Goodwill 75

Fixed Assets 75

Current Assets

Cash in hand 25

Cash in bank 50

Short term investments 45

Inventory 25

Receivable 100

Current Liabilities

Trade payables 100

Income tax payables 60

Non Current Liabilities

Bank Loan 50

Deferred tax payable 25

Find the Quick Ratio

Quick Ratio = (Cash in hand + Cash at Bank + Receivables + Marketable Securities) /

Current Liabilities

= (25+50+45+100) / 160

= 220 / 160

= 1.375

.................................

Q.14 GHI Ltd. manufacturers two products :Product G and Product H. The Variable cost of the manufacture is as

follows:

Product G Product H

Direct Material 3 10

Direct Labour (Rs.6 per hour) 18 12

Variable Overhead 4 4

Types of endorsements

Types of Endorsements:-

1) Blank Endorsements: section 16(1) it means endorser only signs his name with adding any words or directions this endorsement makes the instrument payable to bearer.

2) Endorsement in Full: - The endorser added the name of endorsee specifically.

3) Conditional Endorsement: Here the endorser puts some conditions for endorsee Here the binding of conditions is between endorsee and endorser only.

4) San recourse Endorsement: - Endorser added the words without recourse to me.

5) Facultative Endorsement: - Where an endorser waives the condition of notice of dishonour.

6) Endorsement on Bearer Cheque: - The endorsement on bearer cheque is meaning less as the cheque once bearer is always bear.

Crossing:-

General Crossing (Sec.123): Two parallel transverse lines on the face of instruments with or without word ‘Not negotiable’. It is direction to the paying bank that do not pay the cheque across the counter.

Special Crossing (Sec.124): In addition of general crossing the cheque bears the name of collecting bank either with or without the words ‘Not negotiable’.

Collection of cheques:-

Section 131: a banker who has in good faith and without negligence received payment for a customer of a cheque (not available for B/E and P/N) crossed generally or specially. The present section gives protection provided following conditions are fulfilled…

a) The bank must have acted in good faith and without negligence.

b) Bank has received the payment as an agent for collection.

c) Bank has collected the cheque in the duly introduced account of customer only.

d) The cheque collected must be crossed.

Payment of cheques:-

Liability of drawee (paying banker): It is obligation of the banker to honour the cheques of a customer provided there is sufficient balance and the cheque is otherwise in order. Section 31 of NI act provides that “The Drawee of a cheque:

a) Must have sufficient funds in the account.

b) Properly applicable to the payment of such cheque.

c) Must pay the cheque when duly required to do so.

d) In default of such payment, must compensate the drawer for any loss or damage.

Protection for paying banker in case of cheque:-

Regularity of endorsement Section 85(1): Paying banker’s liability is to ensure the regularity of the endorsement and is not concerned with genuineness of endorsement. The genuineness of endorsement is the liability of collecting banker. Therefore, protection is available to the paying banker in case of forged endorsements.

Payment in due course (Section-10):-

a) In accordance with the apparent tenor of the instrument.

b) In good faith and without negligence.

c) To the person in possession of the instrument.

d) Under the circumstances which do not afford a reasonable ground for believing that he is not entitled to receive the payment of the amount mentioned therein.

When bank should not pay:-

a) The death of the drawer in case of individual’s account terminates the contractual relationship.

b) Insane customers: in case of insanity.

c) Insolvent drawers: The bank should stop the operation of such account as if drawer adjudged insolvent and balance in the account vested with official receiver/assignee.

d) Countermanded by drawer: on receipt of valid stop payment instruction by the drawer.

e) Others: when a cheque is post dated, with insufficient balance in the account, cheque is of doubtful legality, or cheque is irregular, ambiguous, materially altered or stale etc.

Dishonour of cheques (Sec. 138-147):-

The payee or holder in due course should give notice to drawer within 30 days of return of cheque with the reason “Insufficient balance” and demanding payment within 15 days of his receiving information of dishonour. Drawee can make payment within 15 days of the receipt of notice and only if he fails to do so prosecution could take place. The complaint is to be made with in one month of the cause of action arising that is expiry of the notice period.

Punishments:

a) Summary proceedings: fine up to Rs. 5000/- and imprisonment up to one year or both.

b) Regular proceedings: fine up to the double the amount of cheque or imprisonment up to 2 years or both.