Current affairs on 12.04.2020

Today's Headlines from www:

*Economic Times*

📝 Commerce ministry lists steps to support exporters as industry expresses fears of huge job losses

📝 Apple, Google to create contact tracing technology to fight coronavirus spread

📝 Government requests social media platforms to promote Aarogya Setu

📝 Fino Payments Bank logs 80 per cent plunge in domestic remittances

📝 Railways converts 5000 coaches into isolation wards for Covid-19 patients, awaits govt direction on deployment

📝 Lenders invoke shares of Essel group firms Dish TV, Siti Cable, Zee Learn

*Business Standard*

📝 PM hints at lockdown extension till Apr 30; industrial activity may begin

📝 States want up to Rs 10-trn package from Centre, deficit financing from RBI

📝 RBI should start buying corporate bonds to provide liquidity: Deepak Parekh

📝 Plea in SC challenging RBI circular on 3-month moratorium on loan repayment

📝 586 hospitals to treat coronavirus patients, over 11000 ICU beds: Govt

📝 China reports rise in coronavirus cases, most from foreign travellers

📝 LIC gives 30-days extension for premiums due in March, April amid Covid-19

📝 TRAI recommends making interoperability of set top boxes mandatory

📝 Centre likely to lower tariff for discoms to ensure uninterrupted supply

📝 Govt sets up control room to address worker issues during Covid-19 lockdown

*Financial Express*

📝 India gets ready to send aid to 13 countries including neighbourhood

📝 TRAI issues recommendations on reserve price for auction of FM radio channels

📝 Cooking oil production down 40 per cent amid Coronavirus pandemic: Adani Wilmar

📝 Banks offer no relief, NBFC might be unable to service ballooning debt of Rs 1.75 lakh crore

📝 Garment firms begin to make masks, gloves, other PPEs

📝 30 crore poor gets Rs 28,256 crore financial assistance under Pradhan Mantri Garib Kalyan Yojana

📝 India Posts extends insurance premium payment deadline till June 30

*Mint*

📝 Talks to cut the world’s oil production drag on for a third day

📝 In grim milestone, US logs world's highest coronavirus death toll

📝 Covid-19: Govt allows PPF account holders to pay FY20 deposits till 30 June

📝 MHA asks states, UTs to comply with SC order on health workers' security

📝 Rs28,256 cr released for financially distressed under Garib Kalyan Yojana: Govt

📝 Shipment of hydroxychloroquine to US likely to start next week: IPA

📝 Without lockdown, India's Covid-19 cases would have been 8 lakh by 15 Apr: Govt.

NI Act

NEGOTIABLE INSTRUMENTS ACT

1. What is the Section which contains the provisions relating to bouncing of cheques? Sec 138 to

147 of NI Act

2. What is the characteristic of a negotiable instrument? It must be transferable by delivery. & b) It

must enable the holder to sue in his own name

3. Who is the holder in the context of the negotiable instruments? Holder is the person who is

entitled to the possession of the instrument and to receive the amount of the instrument in his own

name

4. A cheque dated 3rd Jan 2005 bears the striking of the pre-printed year 19., can be passed? YES.

Striking need not be authenticated and cheque can be passed.

5. Whether protection is available to the paying banker in case of a cheque where drawer‘s signature

is forged? No.

6. When a post dated cheque purchased by a bank is returned unpaid on the ostensible due date,

what the banker can do? Can sue all the prior parties

7. How will you treat the bill which has been lost before it is overdue? The holder may ask the drawer

for another bill of same tenor against indemnity.

8. With whom, liability primarily rests with in respect of a cheque? Drawer only.

9. ― Endorsement in blank means: Endorsement by the drawer of the instrument signing by the

payee or holder of the instrument without adding any words to it.

10.An order instrument can be negotiated by: Endorsement and delivery.

11. Restrictive endorsement restricts: Negotiability of the instrument

12.A promissory note cannot be issued payable to The bearer on demand. As per Section 31 of

RBI Act: Only RBI can issue Bonds/Promissory Notes payable to Bearer on Demand [Tantamounts to

Currency]

13.A promissory note must contain what? An unconditional undertaking to pay

14.A Bank draft is a cheque. False.

15. Other than cheque, whether a bill of exchange can be drawn on Bank? YES.

16. When a bill of exchange payable on demand should be paid? On presentment

17. Mr. Kamath draws a bill on Mr. Suri payable three months after date. Mr. Kamath dies in a road

accident before the bill is accepted by Suri. Under such circumstances, Suri can accept the bill even if

he is aware of Kamath’s death.

18. When a bill is payable in 3 installments, whether a grace period of 3 days will be allowed on

every installment? True.

19. The term ―Accommodation Bill refers to Which a person signs as a drawer, acceptor or endorser

without receiving value therefore & for the purpose of lending his name to some other persons

20. When the bill is payable at a specified period after sight the period begins from the date of - The

presentment for acceptance.

21. Kite Flying ― is the term used to denote To drawing/accepting of bills just to accommodate the

other party without backing of any genuine trade transactions.

22. A bill of exchange drawn on a partnership firm may be accepted by Any partner.

23. A bill is drawn in Calcutta on a trader in Travancore but accepted payable in Singapore. The bill

shall be called as Inland Bill.

24. A bill is drawn in Calcutta on a merchant in Hyderabad and endorsed in Hongkong. Such a bill is

termed as Inland Bill.

25. A bill drawn in Bangkok on a party in Coimbatore and accepted payable in Delhi is Foreign Bill.

26. Which of the following presentment is improper? Presentment at a place other than the specified

one

27. Who should accept the bill if it is addressed to two or more drawees that are not partners All the

drawees

28. When the bill of exchange does not contain specific place of payment, the bill must be presented

to whom? At the residence (place) of maker/ drawee/ acceptor

29. If the bill is not presented to the drawee within the reasonable time, The drawee is discharged

from his liability

30. In the case of dishonour of a foreign bill protest is Compulsory when required under the laws of

the place where it is drawn

31. When an inland promissory note or bill is dishonoured noting - Is not compulsory

32. The meaning of noting is Record of dishonour of bill by Notary Public

33. When the bill contains the name of a drawee in case of need the bill will be considered as

dishonoured if it is dishonoured by the drawee in case of need or dishonoured by the drawee

34. When a cheque issued by a Limited Company is returned for want of funds, the liability for the

dishonour is with Only the Company and the authorised signatories of the cheque excluding Govt

nominated directors

35. Whether the term―protest refers to a formal certificate of dishonour of bill based upon ― noting

issued by notary public? YES

36. Promissory notes are to be witnessed-For the purpose of identification of the borrower at a later

date

37. Under Section 138 of NI Act, 1881, the drawer of a cheque is liable for prosecution if the cheque

is returned for any reason? FALSE (for Inadequate funds – see question below elsewhere)

38. Punishment under Section 138 of NI Act is applicable only to an individual. FALSE

39. Criminal action against the drawer under Section 138 of NI Act can be initiated by the payee only

when the cheque is returned for the reason - Inadequate funds

40. Punishment under Section 138 of NI Act is Imprisonment upto 2 year/or fine upto twice the

amount of cheque or both

41. Who can file a criminal case against the drawer of a dishonoured cheque The payee/the holder in

due course

42. The competent court for trying offences under Section 138 of NI Act is Metropolitan Magistrate or

I class judicial Magistrate

43. Section 138 of NI Act can be activated only when The cheque should have been presented within

6 months or validity period of cheque whichever is earlier/the payee/holder should give notice

demanding payment within 30 days of notice of information about dishonor of cheque due to

insufficiency of funds and the drawer has failed to make such payment within 15 days of receipt of

such notice/the cheque should have been issued in discharge of full or part of liability/debt.

44. Whether the limit for taking action under Section 138 of NI Act is 60 days from the date of

receipt of dishonour of the cheque by the drawer? NO

45. Whether the complaint for taking action under Section 138 of NI Act can be oral. NO

46. Whether drawee bank‘s liability for damages on account of wrongful dishonour of cheque arises

only if the payee suffers any loss ? NO

47. To a paying banker protection is not available for - Payment of order cheques with irregular

endorsement

48. Whether payment after business hours is payment in due course? NO

49. In a promissory note, the words ―or order ― are Necessary to insert

50. A bearer cheque contains two endorsements. The second endorsement is irregular. The cheque

in question can be Paid in spite of irregular endorsement (once a bearer, always a bearer)

51. Whether alteration from general crossing to special crossing is a material Alteration? NO

52. A travelers cheque is valid for a period of —months from the date of issue. No such period

53. A cheque payable to A or B or order should be endorsed by - No such cheque can be issued.

54. A bearer cheque specially crossed to ― P requires - Any endorsement on such cheques can be

ignored since it is a bearer cheque.

55. The validity period of endorsement on a cheque is - No such restriction.

56. Holder of a post dated cheque will have a valid course of action against drawer - Any time after

the date mentioned

57. Inadvertently a cheque has been paid on 29 November 2003 which is dated 29, November 2004.

Subsequently the drawer stops its payment on 15 December 2003. In such a case Bank is liable for

damages due to negligence on its part.

58. In the case of wrongful dishonour of cheque by the bank due to genuine mistake whether the

bank is liable to the customer YES, the banker is liable for damages

59. Under Section 26 of N.I. Act, if date of maturity of usance bill falls on a public holiday it is

deemed to be due - On the next working day

60. While collecting the cheques for customers, the collecting banker may be held liable for

conversion. Conversion means Interfering with the rights of the true owner

61. Whether action under section 138 of N I Act bars the normal civil remedy No

62. An unstamped pronote can be set right by Payment of required stamp duty with penalty as

required by law

63. A cheque is crossed ―not negotiable; then the effect is that: Transferee will not get a better title

than the transferor

64. A cheque bearing date 30 2 04 is presented for payment on 28.2.04. As per IBA guidelines: The

cheque can be honoured

65. What kind of payments are covered under Section 138 of N I Act Payment in discharge of whole

or part of a debt.

66. A bearer cheque was paid across the counter. Later, the signature of the drawer is found to be

forged, even though signature apparently tallied with the specimen. Bank loses protection and is

liable to the drawer

67. Post dated cheques are Valid instruments

68. In case of endorsed cheque, protection is available if Payment of the cheque has been made in

due course and it is ensured that endorsements on the cheque are regular.

69. Banker should not pay a post dated cheque because

a. It is not payment in due course hence bank loses protection under N I Act. Or

b. Drawer may stop the payment of the cheque or

c. Garnishee order may be served

70. A cheque is valid if it has maximum endorsements upto -There is no stipulation, on the number

of endorsements a cheque can have.

71. A bill dated 12 5 04, payable 3 months after date, is due for payment on: 16 8 2004

72. Protection under Section 89 will be available to a banker if - The cheque has been paid in due

course and the alteration was not apparently visible, at the time of making payment.

73. A bearer cheque has been paid to the holder disregarding the endorsements on it - It is a

payment in due course and Banker is protected under Section 85(2) of the Negotiable Instrument

Act, 1881

74. Protection to a paying banker has been given by law, for Bearer cheques (Section 85)/crossed

cheques (Section 128)/endorsed cheques (Section 85)

75. It is not necessary to write consideration while endorsing an instrument because it is Presumed

under N I Act

76. Whether every cheque is a bill of exchange? YES

77. A bill payable 30 days after sight is presented for sight on 1 3 04. It fell due on: 03 04 04

78. A Negotiable instrument is rendered void by any material alteration If it is not done to carryout

common intention of the party AND as against any party who does not consent the instrument

79. Following type of crossing is not recognized under the provisions of the Negotiable Instrument

Act “ Account Payee” crossing

80. Not Negotiable crossing is considered as General crossing

81. Who can do crossing of a cheque? Any holder or drawer of the cheque

82. Account Payee crossing on a cheque is indicative that - The paying banker should pay the cheque

to the payee only

83. Crossing on a cheque can be cancelled by Drawer

84. When a cheque already crossed ― not negotiable is negotiated the transferee - Cannot be a

holder in due course

85. Payment of following cheque is prohibited under Section 127 of the NI Act 1881 A cheque

crossed specially to more than one banker except where the other bank is collecting it for the first

bank

86. The marking of a cheque signifies Paying banker’s certificate that it is good for payment

87. When the bank marks a cheque it undertakes - To set aside funds for payment of marked cheque

88. Cheques should be collected for - The customers of the bank

89. In the event of conversion of a cheque, the right to sue can be exercised by - The drawer

90. Protection to a collecting bank is afforded by the Negotiable Instrument Act, in respect of

Conversion

91. Collecting banker is not protected for collection of - Uncrossed cheques

92. Ms. Smarty opened a SB Account at your branch and gave satisfactory introduction. One day she

tendered a cheque which had ―Account Payee crossing and was drawn favouring one ―Mr. Genuine

or bearer on another local bank. You collected the cheque and the amount was credited in her

account. The very next day she withdrew the money. Subsequently, the drawer demanded refund of

the amount of cheque stating that the cheque was stolen and has been collected by you for a person

who is not payee of the cheque The bank will get statutory protection as the cheque was collected in

a properly introduced account

93. For becoming a holder in due course of a bearer cheque, the bank must be - Its possessor

94. With a view to become holder in due course of an order cheque, the bank must be It’ s payee or

endorsee

95. When a collecting banker allows the customer to draw against its cheques under collection, the

position of the collecting banker will be - He will be holder for value of cheques

96. Who bears the loss when a cheque with forged signature of drawer is paid? Paying banker

97. The cheque with forged signature of drawer has been paid by the bank Statutory protection will

not be available to the banker/payment is treated as without authority of the customer/customer’s

account can not be debited. (Forged cheque is not a mandate at all)

98. When a cheque with forged signature is paid the burden of proving that the signature was

forged, lies on the Customer

99. If the forgery occurs due to careless handling of cheque book and carelessness on the part of the

customer still Bank is liable

100. Banker‘s cheques and payment order are classified as Not negotiable instruments

101. In the case of bearer cheque Identification of the presenter is not required

102. A cheque received in clearing has been paid. The cheque has drawer‘s signatures which are

forged but the forgery was done so cleverly that it was difficult to detect it in normal course. In this

situation how will the liability of the banker be determined? The bank is liable to the customer

103. When a banker dishonours a cheque wrongfully He is liable to the drawer

104. If drawer of the cheque becomes insane or insolvent - the cheque should Not be paid

105. Payment in due course refers to Payment in accordance with the apparent tenor to the

possessor of instrument in good faith and without negligence under the conditions of no Suspicion

106. As per requirement of crossing, a banker has paid a crossed cheque in due course. If title of the

holder turns out to be defective, whether paying banker is liable or protected? Banker is protected

under Section 128 of the Negotiable Instrument Act, 1881

107. A paying banker can avail protection in respect of cheques Crossed/Without any

alteration/Drawn payable to order and purported to have been endorsed

108. The Negotiable Instrument Act provides protection to the paying banker against Forged

endorsement. (But not forged drawer’s signature)

109. Section 131 of the NI Act, collecting banker gets protection in the case of Forgery of drawer’s

signature

110. Holder of a current account has authorised a person to operate the account. A cheque drawn by

this person is wrongly dishonoured by the bank. This person claims damages on his own behalf -

Only the account holder can initiate action against the banker

111. Before introduction of Section 138, in the Negotiable Instruments Act for dishonour of cheques

due to insufficiency of funds the drawer was Subject to civil liability only

112. Mr. Raman, in settlement of a debt, received a cheque for Rs.20,000 from Mr. Krishnan. The

cheque, on presentation, was dishonoured for insufficient funds. On contacting, Mr. Krishnan

requests Mr. Raman to present the cheque again for payment. However, in the meantime, Mr.

Krishnan stops the payment of the cheque and the cheque is returned unpaid with the remark ―

payment stopped by the drawer. Can criminal prosecution against Mr. Krishnan be initiated? YES

113. Demand draft belong to the category of Negotiable instruments

114. Protection to the banker is available for Both payment and collection of drafts

Prevention of cyber crime recollected on 28 .12.2019

Cyber crime and fraud management recollected on 28.12.2019


Recollected questions:
Cyber crimes are handled by which orgnanisation in india
Type 1 crime
Preventive control
Detective control
Detterant control
Logical control
Sections and their fine with imprisonment in years
Committes of it security ,it governance, it controls
Netra by which organisation
Fast flux
Stux net
Phising
Shoulder surfing
Digital signature
Oldest agency in india
Few questions on cert in
Passive attack
Active attack
Direct attack
In direct attack
Logic bomb
Zeus
India own operating system boss in under whom
Confidentiality
Availability
Integrity
Conventional crime
Cyber crime
Same features of conv and cyber crime
Tailgating
imp topics are  1differences between viruses and worm
2 it act
3 different types of cyber crimes
4 various types of cards
5 gate way payment
6 prevention and detection control
7 pss act
8 2 tier authentication
9 passive and active attacks
mostly questions from 2  and 3 and 4...units

 Cyber terrorism
1. Who Coordinates with Interpol in India ? - CBI
2. Which department was designated as Nodal Agency for Cyber Crime prevention - CERT-IN
3. What is the difference between Virus and Worm - Virus need human intervention to activate or multiply whereas worm automatically get multiplied
4. Worms are mainly used by hackers to - Occupy more space in the system/heavy usage of bandwidth in the network
5. One of the employee carefully watching the password entered by the Manager. What type of threat it is - Shoulder Surfing
6. Leaving a Logged in Computer by an employee - is human negligence
7. Hackers scans the computer pre attack to identify - Vulnerability in the system
8. Hackers inject worms/virus into the network to reach the target system and it - exploits the Vulnerability
9. Non updation of antivirus is - one of the major vunerability
10. One customer recieved a call in his mobile phone and the person posing himself as a bank manager collected the card credentials from him.This type is called - Phising
11. Online Banking sites are borne to what risk - Phising/IP spoofing
12. Data transfer between systems vide Network can be secured by - PKI
13. Customers can make sure that they deal with the authenticated website - by checking the Lock icon near the address bar
14.In https, S denotes - Secured/Security
15.This kind of worms directly attacks the root directory - Rootkits
16. This worms are really hard to detuct and delete - Rootkits
17. The compromised systems in the network are commonly termes as - Zombies
18. Customer security credentials were compromised by way of fraudulent SMS is called - smishing
19. The employees who try to hack their own company's site/find the vulnerabilities are called - White hat hackers
20.DDos - Distributed Denial of Service
21.Ransomware which blocks the access to the website demanding ransom for the same is - Denial of Service attack
22. Using same method for both encryption and decryption is called - symmetric encryption
23. Providing Last Login detail in Internet banking site is to - to detect any unauthorised usage earlier
24.Limits for retrying the passwords is - to avoid the unauthorised access
25. To safeguard from the Key Loggers attack - Use Virtual Key board to enter passwords
26.UTM stands for - Unified Threat Management
27.Setting up smoke detectors in the branch is - Detective Method
28.Placing Security guard in system room to avoid - Physical damage/attack on systems
29. Following the authorised person to enter into system room and making entry into the room is - Tailgatting
30.Dumbster Driving is a method - Searching for vulnerability in deleted files and data
31.FIrewall is - Intrusion Detection System
32.Authentication of electronic data/document can be assertained by - Digital Signature
33. When two or more persons illegally tries to enter into a critical room with single id/same id - Masquerading
34.Detection is normally - Post incedent
35. Post incident study mainly for the purpose of - study the impact of the attack and lessons for future prevention
36. Indian Agency working on Digital Forensics and Cyber security - C-DAC
37. OLTP refers to - On line Transaction Processing
38. OLTP is also termed as - Payment Gateway
39. Payment Gateway the Acquiring Bank to - Issuing bank through the Card Scheme to complete the transaction
40.Security Concerns arise in Payment Gateways are - At the User Level, Bank level and Merchant POS
41. Credit Card data theft through POS is falls under - Merchant PoS Security
42.Data encrypted using Private key can be decrypted by the public key available with - the Receiver
43. Cross verifying the Signature on the Slip against the Signature in the back side of the ATM card is doen by - the Merchant
44.Data should be secured in the following stages - Saved, Transit and Retrival
45.Intruder software in a network which attacks the data while in trnasit and thus commits data theft - Man in the Middle Attack
46. Captures a widows sessio for the purpose of data theft before it reaches the recipient is - Session Hijacking
47. Limits set for retrying of password is to avoid - Brute Force attack
48. ISSP stands for - Information System Security Policy
49.ICANN stands for - International Corporation for Assigned Names and Numbers
50.TLD stands for - Top Level Domain
51.Globally recognized set of rules defined for electronic records is - e-UCP
52.Technique used to redirect traffic from the infected device is called - Sinkholding
53. The technique which can intercept unencrypted data transit of mobile apps is called - Wi FI Snifing
54. This is one type of malware which doesnot affect the system/network - Ad-ware
55. This usually comes as a Pop up/add on screen which carries link for dubious websites - Ad-ware
56.EMV cards follow standard of - ISO/IEC No 7816
57. EMV cards follow this standard for Contactless card - ISO/IEC 14443
58. NFC is the technique used in contactless cards - Near Field Communication
59.PCI - DSS stands for - Plastic Card Industries - Data Security Standards
60. NFC cards works under - RFID Technology
61. Providing Access controls to employess based on roles/need is - Risk based Authentication
62. Seeking PIN to complete a transaction in PoS is - 2FA
63.SSL - Secure Socket Layering
64.SSL ensures - Encrypted link between a web server and a browser
65. Sending annoying messages to a person causing irritation/nuisance - Cyber Stalking
66. Black mailing a person using Computer/or network is - Cyber Extortion
67. Ransomware is type of - Cyber Extortion
68. Disputes on Domain names and protest are redressed globally by - UDRP
69. Phising/Vishing is type of - Cyber Cheating
70. Group of people attacks a Computer/ group of computers for propagating a objective - Cyber Terrorists
71. Hackers with common interest attack rival government's department site and database are - Cyber terrorists
72. ____ refers to the quality of secrecy associated with the data and the state of keeping an information asset secret - Confidentiality
73.____ refers to the state of remaining in the same format and not allowing for any tampering/manipulation - Integrity
74. ____ refers to the state o confirmation that the user has the authority to issue the command to the system - Authorisation
75. Quality of non denial, the stake holders are not permitted to denythe particular act of doing the act is - Non-repudiation
76. CAPTCHA refers to - Completely Automated Public Turing test to Tell Computers and Humans Apart
77. Placing letters in different sizes and styles which is hard to read by systems/robots is called - CAPTCHA
78. _______ is an important component for study and analysis to under the modus operandi of a Cyber Attack - Threat Vector
79. In cyber Crime, Threat landscape is denoted as - Study of entire overview of the network which was attacked
80. Conventional Crimes are - Physical crimes that involve thet of systems and hardware devices
81.Cyber Crimes are - System Crimes that involves data theft or tampering
82.Insider Attack Threat is - attack on the system/network by own employee without any permission/authentication
83.______ is the most dangerous attack in cyber crimes - Insider Attack
84. An employee copied and sold the sensitive information to a competitor concern is an example of - Insider Attack
85. Hackers scan the port/system and develop worm or codes to attack the same based on this - Vulnerability
86. ____ doesnot wait for any executable file to run for getting activated in the target system - Worm
87.____ refers to small piece of programs injected into the target system to spy on the activities - Spyware
88. Drones are classified as - Spying Devices
89. UAV stands for - Unmanned Aerial Vehicle
90. Most of the UAV used by the polic/defence authorities for - Survelliance purposes
91.The persons who are hired by companies to hack their own website/to identify the Vulnerability are - Blue Hat Hackers
92. System of effectively taking care of URL filterig, web-filtering, anti-virus, as all in one solution is referred as - Unified Threat Management
93. Force Log out option in Internet banking after certain time of Idleness is to guard the system against - Session Hijacking
94. Installing anti virus into the system is - Preventive Method
95.A statement used to create, alter, drop objects in a database is called - Data Definition Language
96. Fault Detection, isolation nad recovery are closely associated wiht - Detection Control
97. Installing Bio Metric devices to check unauthorised entry is - Physical Control
98. Unless properly logged, straightaway accessing the database through a SQL is termed as - Back end Access
99.IT Act 2008 describes the activity of hacking as a criminal activity in section no 66
100. IT Act 2000 came in force on - 17 October 2000
101. IT Amendment Act came into force on - 27 October 2009
101. IT Act consists of - 13 Chapters and 90 Sections
102. The Section which deals with cyber crimes as civil offence - Section 43
103. The Section deals with cyber crimes as Criminal Offences - Section 66
104. IT Amendment Act included the following which is not in the IT Act 2000 - Electronic Signature
105. Electronic Signature has been dealt in - Section 15
106. Under Section 43A, if any body corporate handling any sensitive personal data is negligent in implementing and maintaining reasonable security the compensation may go upto - five crore rupees
107. Under Section 43, if one found guilty on Data theft/alters/destroys the same the penalty/compensation may go upto - One Crore rupees
108. Tampering with Computer Source Documents - Section 65
109. Punishment under Section 65 may go upto - Three years imprisonment and extend upto Two Lakhs Fine
110. Computer Related offences which were dealt under section 43 can also be dealt as criminal offence under section - 66
111. Punishment under Section 66 may go upto - two three years and/or fine upto five lakhs rupees
112. Crime of Cyber Stalking ( sending electronic messages for the purpose of causing annoyance/inconvenience/decieve/mislead the recipient) may lead to - two three years imprisonment
113. Identity Theft is dealt under Section - 66c
114. Punishment of Identity Theft - may extend to three years term and/or fine upto One lakhs rupees
115. Puishment for Cyber Cheating - may extend to three years term and/or fine upto One lakhs rupees
116. Cyber Cheating is dealt under - Section 66D
117. Punishment for Cyber Terrorism may extend upto - Life time Imprisonment
118. Cyber Terrorism is dealt under - Section 66F
119. Publishing obscene material in electronic form dealt under - Section 67
120. Punishment under Section 67 may extend upto - two three years term and/or five lakhs fine
121. Punishment for Sudsequent conviction of the same crime under section 67 is - 5 years term and/or ten lakhs rupees fine
122. Sexually explicit content in electronic form dealt under - Section 67A
123. Punishment under Section 67A is - Five years term with fine
124.Punishment for Sudsequent conviction of the same crime under section 67A is - 7 years term and/or ten lakhs rupees fine
125. CERT-IN has been designated as Nodal agency for Critical Information Infrastructure Protection under Section - 70B
126. Mispresentation/Suppression of material Fact dealt under - Section 71
127. Penalty under Section 71 - Two years term and/or fine upto One lakh rupees
128. Breach of confidentiality and Privacy dealt under Section - 72
129. Analysing the style of writing or the langauage style for the purpose of Crime Investigation is - Stylometry
130. RBI issues licenses for Payment Banks in India based on approval from - BPSS
131. NTRO stands for - National Technical Research Organisation
132. Netra, the light weight UAV was developed by - DRDO
133.NCIIPC stands for - National Critical Information Infrastructure Protection Centre
134. DSCI - Data Security Council of India
135. Digital Forensic tools used by our Police Department were developed by - C-DAC
136. C-DAC stands for - Centre for Development of ADvanced Computig
137. NTRO works under - Prime Minister's Office
138. Two acts which are mainly handled by ED - FEMA and PMLA
139. Money laundering using banking systems/Internet banking is - Conventional Crime
140. Obtaining an IP address similar to some other and demanding a ransom for forego the same is - Cyber Squatting
141. Data Protection while in transit using non repudiation techniques can be achieved through - Public Key Infrastructure
142. Card Skimming is a technique mostly used th steal the card details and it mostly placed on - ATM manchines
143. Card Skimming Data Theft can be avoided using - Contactless Cards/NFC Cards
144. To avoid the Card Credentials in Online sites these cards were introduced - Virtual Cards
145. Smart Cards which are loaded with Money prior to issue is called - Prepaid Cards
146. Virtual Cards normally comes with a validity of - 24 hours to 48 hours
147. Maximum loading permitted in a Prepaid as per RBI instruction is - 50000/-
148. Hackers try to capture the login credentials by analysing the keys pressed in the Key boards. the worms captures such data is called as - Key Loggers
149. By clicking unauthenticated link, customers may diverted to fake websites to capture the sensitive personal. This is type of - Website spoofing/IP Spoofing
150. Ad wares are used not to harm the computers but to - make a catch by making the user to click on the dubious link to fake websites

5 TIPS TO CRACK JAIIB-CAIIB IN 1st ATTEMPT

5 TIPS TO CRACK JAIIB-CAIIB IN 1st ATTEMPT.

If you've just joined the Banking Industry, you must have applied for JAIIB/CAIIB or If not, you'll be applying room & 1 thing everyone wants to know is how to pass JAIIB/CAIIB is get an extra increment. So sooner you pass the Exam, earlier you get an extra increment. If you've as Officer JMGS-I (PO), your initial basic salary would be ₹.23700. If You Clear JAIIB/CAIIB, you get 2 increments & your basic salary increase by ₹.1940. So if you miss it 1st time, your Increment gets delayed by 6months. That means loss of ₹.11640+DA. So it becomes important to clear JAIIB/CAIIB Exam in 1st attempt itself.
Around JAIIB 1.50lacs & CAIIB 1lac candidates appear for the Exam. Only 22-25% candidates are able to clear the exam each time. So does it mean that JAIIB/CAIIB is difficult to crack? What should be the Strategy to clear the Exam in 1st Attempt? How 1 should prepare for Exam?
Passing marks for JAIIB are 50% aggregate & 45% in each Subject. If aggregate marks less than 50% or Marks in a particular paper less than 45%, but you score 50%/more in any other 2 sub. You don't qualify the exam but need not give that particular paper in 2nd,3rd,4th attempt, in which you score 50%/more. The best part of Exam is that result of each paper is shown to you immediately after submit your online Exam.

Simple 5 Steps to Prepare for the JAIIB/CAIIB Exam:
Take off the burden from your mind, you're required to score only 50% which's not very difficult & the Good thing is that there's No NEGATIVE (-) Marking.
Here is a simple step by step guide which will help the Bankers to be prepared for JAIIB/CAIIB.
If you come from Commerce/Finance background  (BBA/MBA), It's relatively easy to break the JAIIB/CAIIB. Because you would have studied atleast 65% of topics covered. If you're not from Commerce/Finance backgroue you need to make little Extra Efforts.
1. GET THE RIGHT BOOKS: After reg. for JAIIB/CAIIB, 1st thing you should do is to get the Books for all 3 Subjects. Best books available for JAIIB/CAIIB are by McMillan, which IIBF also suggest. these Books are available on Amazon:
-JAIIB (PPB-AFB-LRAB)
-CAIIB (ABM-BFM-OPTIONAL SUB).
These Books might seem bulky but has covered the entire syllabus & has everything you need to know. The Book is designed in a way that 1can easily be prepared by just reading the definition & summary. the MCQs will give you a fair Idea of level of preparations.
If you don't have enough time & don't want to study IIBF Books, you can by the Books JAIIB/CAIIB by N.S.Toor, which are in QA format.
2. KNOW YOUR SYLLABUS: As a Banker it's likely that there will not be a lot of time left for studies after a hectic day of work. Hence it's best to start early. the Idea is to plan for the Syllabus & Time them so that the Level of Preparedness is High. Knowing your syllabus will give Idea, how much time need to prepare.
If you've been a Commerce student, you'll find the AFB & some part of LRAB, you've already covered during your studies earlier. So 60% of your Job is already done. You can mark these topics & focus on those topics which you've not studied earlier.
If You've been Arts/Science & Engg Student, everything is New for you & need to prepare for everything..

3. MAKE A STRATEGY FOR STUDYING: ( I've already posted about JAIIB-CAIIB Study Strategy & Study Plan a Month Ago, You must keep follow them out of action).

4. PRACTICE & ATTEMPT SOME MOCK TESTS: Another great step is to find out previous 3years Question Papers. Prepare them all leaving 1 which will work as a model test before you actually face the Exam. the Idea is to practice a lot of question type compared to cramming. You can attempt in JAIIB-CAIIB Forum, Blogs website 'Free Mock Tests for JAIIB-CAIIB', which will give you an Idea how the actual exam is held. attempting Mock Test help you practice the actual Exam conditions.
5. ON THE ACTUAL TEST DAY: Choose the easy questions 1st as they will give you an estimate of the Score. then come back to the Questions which were missed. Also, there's No NEGATIVE (-) Marking, so attempt all Questions. If you stuck in a question, leave that by Marking & Go ahead..

ALL THE VERY BEST.
WISH YOU GOOD LUCK...

CALCULATION OF INTERNAL RATE OF RETURN (IRR)

CALCULATION OF INTERNAL RATE OF RETURN (IRR) Internal rate of return (IRR) has to be ascertained when we assess the term loan proposal. It is the income generating capacity of the total funds used in the project over its life time. The ‘Internal Rate of Return’ (IRR) is that rate at which the sum of the discounted cash flows is equal to the investment outlay. In other words, IRR is that rate which makes the present value of the benefits equal to the present value of costs or reduces the net present value to zero.

Jaiib legal important

JAIIB LEGAL VERY IMPORTANT 1

1. Charged created by Bailment of goods to secure payment of a debt is called: Pledge
2. Guarantee is defined in: Indian Contract Act
3. If on a letter of credit it is not mentioned whether it is revocable or irrevocable, then as UCPDC 600,
it will be treated as : Irrevocable LC
4. A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life Insurance Policy
with surrender value of more than Rs 15 lakh. What will be done?: Bank can sanction.
5. In which of the following cases, the document is required to be attested by two witnesses?: (a)
Pledge (b) Hypothecation (c) Mortgage (d) Lien
6. A document was executed by three partners in different dates. When shall the limitation period
start?: The limitation period will start from the last date i.e. when the document was executed by the
last partner.
7. Loan to a company engaged in construction of projects, which method of financing is to be used:
Cash Budget method.
8. What is the meaning of Group in Exposure Norms: Commonality ofmanagement
9. The procedure used for ascertaining Customers Creditworth is called: CreditRating
10. Green field project is related to : setting up new projects
11. What is Real Rate of Interest?: Prevailing interest rate minus inflation rate
12. Themain distinction between Hypothecation and Pledge is on accountof : Possession
13. In Letter Of Credit jmporter is called: Opener of Letter of Credit
14. Cash Budgetmethod is used for sanctioningworking capital limits to : Seasonal Industries
15. Bank's charge over LIC Policy is created by: Assignment
16. Guarantee issued by a bankwhich is still outstanding is shown in the Balance Sheet as: Contingent Liability.
17. Why loan against Partly Paid Shares are not preferred by banks?: Because partly paid shares represent
contingent liability. In case companymakes demand and the borrower does not pay the amount then the bank will
have to pay the amount otherwise share may be forfeited.Moreover it is prohibited by RBI
18. Return on Investment is calculated to ascertain of the unit.: Profitability
19. For ascertaining that a firm will be able to generate sufficient profit to repay instalments of term
loan, which ratio is computed?: Debt Service Coverage Ratio
20. In the Balance Sheet of a bank, Contingent Liabilities are shown as: footnote to the Balance Sheet.
21. Finance for construction of road and port is classified as: Infrastructure Finance.
22. Banks are required to declare their financial results quarterly as per provisions of : SEBI
23. Loanwas raised fromthe bank against NSC byMr.Xand noting to this effect was recorded in the issuing
PostOffice.Xdies. The nominee approaches post office for payment ofNSC.Whowill have priority i.e. bank or
nominee?: Bankwill have prior claimagainstNSC.
24. Hypothecation can be converted to pledge by: taking possession with the consent of the borrower.
25. What charge to be created for demat shares with bank as security: Lien
26. Perpetual bonds and perpetual non cumulative preference shares as part of tier I capital can be up to%of tier I capital:
40%
27. Provisions on standard Assets are shown under which head in the balance sheet of the Bank?: Other
Liabilities and Provisions on Liabilities side.
28. For classification of assets in consortium accounts, which of the following is to be considered?:
In consortium accounts, each bank will classify the account as per its record of recovery.
29. Who is bound to file particulars of chargewith theRegistrar of Companies underMCA21,when a
company creates charge of somebody on itsmovable or immovable property except byway of pledge?: officials of
the company.
30. Credit ofRs.20,000/-was taken asRs.2000/- and as a result a chequewas returned in the account forwant
of funds. Bank has already sent statement of account to the depositorwho has acknowledged receipt of the statement
of account.Whether bank is liable?:Yes. Liable to drawer of cheque.
31. Advance to a companyagainstTrust receiptwhere document of title goods transferred to bank and goods to be
released against payment by the company.Whether a charge is to be registeredwith theRegistrar ofCompanies under
MCA21?:NotRequired
32. Under multiple banking system, exchange of information between the banks is to be done for the limits of
crores and above and periodicity is : Rs.5 crores and Quarterly
33. If a LC contains a clause "about" regarding the amount and quantity of goods, howmuch tolerance is
permitted?: 10%
34. What is the type of liability for the bank on account of issue of BankGuarantee?:Contingent Liability
35. To arrive at group concern, factors to be looked into are : commonality ofmanagement + effective
control.
36. The limitations of financial statements are : only quantitative not qualitative.
37. Hypothecation described under SARFEASI Act.
38. Off Balance sheet / On Balance sheet exposure- if altered the risk will be Credit Risk.
39. Guarantors Liability: Recall the a/c and cause demand against the borrower and guarantor.
Balance in guarantor's SB a/c cannot be appropriated directly.
40. Excess of current liability over current assets means the firm may face difficulties in meeting its
financial obligations in short term.
41. If documents are to be presented in about July month: these can be presented within 5 days before
or 5 days after.
42. Pledge is defined in: Indian Contract Act
43. When limitation will not extend: Balance Confirmation signed after expiry of limitation period
45. Onmaturity of bank guarantee, an intimation is send to customer and if no response received in 30 days,
vouchers are reversed. This is done for following reason? Bank has to maintain capital on Bank
Guarantee for the purpose of capital adequacy norms.
46. Which of the following is not a disadvantage of CC account? Issuance of cheque book
47. In case of revaluation of fixed assets, what percentage of revaluation reserve will be added to Tier
II capital of the bank?: 45%
48. When a loan is recovered from guarantor for dues payable by the Principal Debtor, debtor
becomes entitled to all rights and remedies which the creditor had against the Principal Debtor. This right
of guarantor is called: Right of subrogation.
49. in case of loan against bank deposit charge is created by: assignment
50. in case of loan against NSC, charge is created by: assignment
51. What is cash loss : net loss before depreciation (Net loss minus depreciation)
52. Why fund flow statement is taken from the borrower?: To know sources from where funds have
been raised and how funds have been utilized and to know changes in net working capital position.
53. Stand by LC is just like : Financial guarantee (A guarantee of payment issued by a bank on behalf
of a client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment
with a third party. Standby letters of credit are created as a sign of good faith in business transactions, and
are proof of a buyer's credit quality and repayment abilities)
54. Banks provide term loans and deferred payment guarantee to finance capital assets like plant and
machinery. What is the difference between these two: Outlay of funds.
55. For the purpose of creation of equitablemortgage, the place for deposit of the title deed is notified by :
56. Number of days allowed to opening bank and negotiating bank to verify that documents are as per
terms of LC is: 5 banking days each
57. In the case of hypothecation : both possession&ownership is with borrower
58. If stock statement is not submitted for 3 months from its due date and DP is allowed on the basis of
old stock report, then the account will be considered NPA after:90 days
59. Limitation period formortgage :12 years
60. Loan is in the name of A&B. Both have signed documents. A signs the Balance Confirmation but B
does not. In this case limitation will extend against: both
61. What is negative Lien?: A declaration by borrower that he will not sell or create charge of any
body on a particular asset without consent of the bank
62. Why banks do not grant loan to a minor?: A minor is not competent to contract Therefore, Ioan
given to a minor can not be recovered.
63. Normally bank can not grant advance to its directors. However, there are certain exemptions to this rule.
Thus a bank can grant a loan to its director against the security of: Government securities, life insurance policies or fixed
deposit;
64. If on a Letter of Credit, date is mentioned as "end of the month", then as per UCPDC 600, it will
mean: 21st to last day of the month.
65. A minor was given loan. On attaining majority he acknowledges having taken loan and promises to
pay. Whether the loan can be recovered? : He can not ratify the contract. Hence recovery not possible.
66. A loan was sanctioned against a vacant land. Subsequently a house was constructed at the site.
What security is available now to the bank? : Both
67. Preoperative expenses forms part of the following: Intangible assets
68. Aand B raised a loan jointly and both are liable jointly and severally.When the limitation period is
approaching,Aacknowledges the debtwhile Bwas away fromIndia. Limitation expires before B comes to India and
after coming, he denies acknowledging the debt. Bank can proceed for recovery of the loan as per limitation act from:
Both
69. An L/C is expiring on 10.05.2008. A commotion takes place in the area and bank could not open.
Under these circumstances can the LC be negotiated?: The L/C can not be negotiated because expiry date of
LC can not be extended if banks are closed for reasons beyond their control.
70. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receives seizure order from
State Govt. What should bank do?: Bank will first adjust its dues and surplus if any wilt be shared with
the Govt.
71. 3 partners signed a document on 3 different dates. Limitation period starts from: Date of last
signatures.
72. Acknowledgement of Debt can be obtained for how many number of times : No limit
73. In the case of advance to a limited company for purchase of vehicle, the charge is registered with
Regional Transport Authority in addition to registration of charge with. Registrar of Companies. Why this is
done?:So that borrower can not sell the vehicle without intimation to the bank
74. Why banks prefer financing of bills?: because the advance is self liquidating
75. Formation of consortium, when essential :When bank touches its exposure ceiling
76. A letter of credit which is issued on request of the beneficiary in favour of his supplier: Back to Back
LC
77. As per internal policy of certain banks, the net worth of a firm does not include: a. Paid up capital b.
Free Reserve c. Share Premium d. Equity received from Foreign Investor : Revaluation Reserves
78. A lady who has taken a demand loan against FD come to the branch and wants to add name of her
minor son, as joint a/c holder. What you will do?: Name can be added only after adjustment of the loan.
79. Guarantee issued by a bank in favour of Custom department that party will fulfill export obligation for
availing exemption fromcustomduty regarding tax. Such guarantee is called: FinancialGuarantee
80. Particulars of satisfaction of charge by a company are to be filed within: 30 days from date of adjustment
of loan.
81. In a company, the registration of charges is required for: a)loan against FD b)lien on Govt
Securities c) assignment of Book Debts d) lien on Shares : Book Debts
82. LoanDelivery Systemis not applicable to: a) Loan to Soft ware industry b) export credit: export credit
83. Stamp duty in usance bill of exchange: 0.25 per 1000/ 0.75 per 1000 / 1 per 1000 / none : It is
according to value and time i.e. Advalorem(it is Rs 0.65-per Rs 1000 up to 3 months usance)
84. Property equitably mortgaged on 08/03/08. A registered mortgaged created on this property, on 05/03/2008
whichwas got registered on 08/03/2008.Whichwill have priority: registeredmortgage as itwas created earlier.
85. The Bank did not disclose all material facts regarding loan to the guarantor while obtaining
guarantee. Can guarantor escape liability?: Guarantor cannot escape from his liability as it is not necessary
to disclose all the materials facts with regards to the loan.
86. Banks are required to obtain audited financial papers from non corporate borrowers for granting
working capital limit of: Rs.25 lakh &above
87. In the case ofHypothecation: neither possession nor ownership come to Bank.
88. Negative lien means: Undertaking by the borrower not to sell or create charge on a particular
property without consent of the Bank.
89. RecentlyRBIwarned banks against charging: excessive interest to small borrowers.
90. Which of the following is correct regarding reverse mortgage?: The scheme is available to senior
citizens only; the property should be self occupied by the owner.
91. What are the rules relating to advance against Kisan Vikas Petra?: It can be granted provided
KVP is assigned to the bank.
92. Bailment of goods to secure a debt is called: pledge.
93. Deferred payment guarantee issued by a bank is a : Contingent Liability.
94. When mortgage is created by a person by deposit of title deed orally, it is called mortgage :
Equitable
95. For the purpose of creation of equitablemortgage, the place for deposit of the title deed is notified by : State
Govt.
96. Under SARFAESIAct 2002 the banks give notice for payment of due amount to the borrower / owner of
charged assets
97. Action under SARFAESI Act can be taken simultaneously in DRT/Suit filed cases without taking
permission from the Competent Court
98. For enforcing right under SARFESAI Act, in the case of consortium advances, consent of which
bankers is required?: consent of 60% bankers by value is required.
99. SupervisoryReviewaccording towhich Central Bank of the country is to ensure that proper capital has been
provided for
risk exposure andmaintain proper systemfor the same is provided under?: Pillar II of Basel IL
100. Chargewhere SARFAESI action can not taken: Pledge
101. For taking action under SARFAESI, the outstanding should be:More than Rs.1.00 lac
102. Limit for filing suit in DRT: Rs.10 lacs and above
103. For acquiring securities charged to the bank under SARFAESI, notice of days is required to be
given to the borrower and for sale of securities so acquired notice of days is 60 & 30 days
104. As per a recent judgement of the Supreme Court,while initiating action under SARFAESI, the position in case
of suit filed in DRT would be: that no permission is required fromDRT and action under SARFAESI can be initiated as
both the cases can run together.
105. For taking action under SARFAESI, the outstanding should be:More than Rs.1.00 lac
106. In case of SARFAESI Act, before preferring appeal to DRAT, how much amount is to be deposited
by the borrower with DRAT?: 50% of the claim amount which

can be reduced to 25% by the DRAT.
For making application to DRT, no amount is to be deposited

Working Capital Ratios

Working Capital Ratios
1. Net Sales to Total Tangible Assets (times) (NS/TTA):
Indicate the company's ability to generate sales by utilising its Tangible assets. Tangible assets are total assets minus intangible assets.
Rationale: It is very important to understand - whether achievement of sales by the unit is on account of utilising tangible assets or intangible assets. As mostly, Bank finance will be given for creation of tangible assets, performance of the unit is to be gauged based on utilization of tangible assets created out of Bank finance.
2. Operating Cycle- No. of total days: (Inventory / Net Sales) + (Receivables / Gross Sales) (Days):
Operating cycle is number of days required for a unit to put cash into its operations and then getting return in the form of cash i.e., period from cash to cash.
Rationale: It indicates the time required to produce goods, sell the goods and receive cash from customers by sale of goods. Higher the days, higher may be the requirement of WC. This is useful for estimating the amount of working capital that a unit needs in order to run the business.
3. Working Capital Gap:
WC gap = Total Current Assets – Other Current Liabilities (OCL).
If we deduct Bank borrowings out of total current liabilities, we will get OCL.
Rationale: WC gap signifies the amount of current assets getting funded by current liabilities, other than Bank borrowings.
4. Bank Finance (WC Gap – NWC):
Bank Finance = WC Gap – NWC
Rationale: While calculating required amount of short term Bank finance for a unit, we have to deduct available NWC from WC gap.
5. NWC / TCA (%):
It signifies the portion of current assets getting funded by NWC. Though, there is no standard benchmark for this ratio, ideally, this ratio should be more than 25%, minimum.
Higher the ratio, better is the comfort.
6. Sundry Creditors / TCA (%):
It signifies the portion of current assets getting funded by Sundry Creditors. Though, there is no standard benchmark for this ratio, ideally, this ratio should be restricted to maximum 25%.
Lower the ratio, better is the comfort.
7. BF / TCA (%):
It signifies the portion of current assets getting funded by Bank finance (BF). Though, there is no standard benchmark for this ratio, ideally, this ratio be restricted to maximum 50%.
Lower the ratio, better is the comfort.
8. OCL (excluding Sundry Creditors) / TCA %:
It signifies the portion of current assets getting funded by OCL, other than Sundry Creditors. Ideally, this ratio should be low or nil as these liabilities generally are of the nature of Public Deposits (maturing within next 1 year), unallotted Share Application Money, Advance / Deposits from Dealers, Installments of Term Loans (becoming due within next 1 year), Statutory Liabilities, Expenses Payables, Provisions etc which are having little role in creation of current assets.
Lower the ratio, better is the comfort.
9. OCA / TCA (%):
It is the amount of Other current assets out of total current assets. It signifies whether current liabilities are utilized by the unit for creation of core current assets like cash, inventory, receivables or utilised for creation of non core current assets like Advance payments, taxes, prepaid expenses etc.
Lower the ratio, better is the comfort.

Few lessons learnt in past few days

Few lessons learnt in past few days:

1. Majority of people can work from home.
2. We and the kids can survive without junk food.
3. Prisoners in jails for petty crimes can be released.
4. We can build hospitals within days.
5. We can spend Billions of Rupees on poor without red tapism.
6. We can survive vacations without trips to Europe and USA.
7. Developed nations are as vulnerable as any poor nation, in fact more vulnerable.
8. Our family system is still intact..
9. We spend hell lot of Petrol unnecessarily burdening our economy.
10. Rich people are in fact less immune than the poor.
11. Elites are not powerful. They are shallow.
12. Husband can live with his wife without weekly parlour visits and vice versa.
13. Elders are the backbone of a family.
14. Saving money is important.
15. Mutual Funds are actually subjected to Market Risks.
16. Living a hygienic life is not difficult.
17. Only women are not supposed to know how to cook.
18. There are a lot of good people in the World.
19. Don't disrespect nature.
20. Charity is not something you give, it is a satisfaction you recieve.
21. If you build more schools, you have to construct less hospitals.
22. We are encroaching on nature.

Basic Banking Bits ...BANKING LAWS INCLUDING NI,BR & RBI ACT AND PRACTICES

BANKING LAWS INCLUDING NI,BR & RBI ACT AND PRACTICES


1. Provisions relating to Nomination are given in : Banking Regulation Act (Sec 45 ZA to 45 ZF)
2. As per section 26 of the Negotiable Instruments Act, a Minor can draw, endorse, accept a negotiable
instrument but he can not : bind himself
3. A has granted Irrevocable Power of Attorney in favour of B for one year. After 3 months, A
revokes the Power of Attorney. A cheque signed by B is presented for payment_ What will you do?
The cheque will not be paid because POA can be withdrawn before maturity and once it is revoked,
no cheque signed by agent can be debited to account of Principal
4. What is the Doctrine of Ultra Vires in the context of a limited company?: Any act by the directors
beyond the object of the company is considered ultra vires the company and company is not bound by such
act.
5. A minor who was admitted to the benefits of partnership has become major. Within how much period,
he has to decide to remain partner in the firm or not?: within 6 months of attaining majority or 6 months of
knowing that he is the partner in the firm whichever is later.
6. If on a cheque words "Account Payee" is written between two parallel lines or with the name of a
bank, then: the cheque can not be endorsed.
7. Which type of crossing is required to be done if the drawer wants that in case of endorsement, the
title of transferee of the cheque should not be better than the title of the transferor: Not Negotiable Crossing
8. In the case of dishonour of a cheque due to insufficient funds, for enforcing rights under section 138
of the Negotiable Instruments Act 1881, the holder should send a notice to the drawer within: 30 days from
the date of receipt of notice regarding dishonour of the instrument.
9. The iimitation period for filing case in case of dishonour of cheque due to insufficient funds is: 1 month
from the date of cause of action.

10. Objectives for which a company has been formed are given in: Memorandum of Association
Full formof BCBS is Basel Committee on Banking Supervision.
11. Direct Impact of increase in CRR is : Controlling Liquidity
12. Banks can not issue Demand Draft payable to Bearer as per provisions of : Section 31 of the RBI Act
13. Grace Period is allowed in the case of : Usance Bills and Usance Promissory Notes
14. Indian Banks are required to maintain minimum Capital Adequacy Ratio of : 9%
15. In the case of individuals and HUF, tax will be deducted at source if the interest on term deposit in a
financial year is : more than Rs 10,000
16. If Power of Attorney is executed outside India it should be stamped within:90 days of its first arrival in India
17. For its implementation, the complainant should accept the award given by Ombudsman within: 30
days of the receipt of the copy of the award.
18. When proceeds of cheque are given before clearance of the cheque the banker will be called: Holder
for Value
19. What do we 'mean by Surrender Value of Life Insurance Policy?: Minimum amount payable by the
insurance company in case of foreclosure of the policy before maturity.
20. In the case ofWrongful dishonour of cheque, to whomthe bank is liable?: Drawer
21. If date on a cheque is prior to the date of its presentation, it is called: Ante Dated cheque
22. What isminor's liability in HUF Account: Minor is not liable
23. When does the right of nominee starts in respect of a deposit account?: After death of all depositors
24. For injectingmoney in themarket which type of transaction is undertaken?: (a) Repo (b) Reverse Repo
25. Garnishee order is not applicable to: Unutilised portion of the Cash credit limit
26. Which of the following is not added in the demand and time liabilities for calculation of SLR?: Capital and
reserves, inter bank deposits for maturity up to 14 days, borrowings from RBI and refinance from NABARD, SIDBI.
27. RBI controlsmoney supply through: change in CRR
28. Loan given to a director can be waived: after permission of RBI.
29. Under theOmbudsmen scheme, the Bank has to reply to the objection of the complainant within: onemonth
30. Locker should be broken open if it is not operated for _ year in case medium risk and _ year
in case of high risk customers: (3,1).
31. A post dated cheque is passed in the account of a customer. But another cheque which was in order was
dishonoured due to insufficient funds.What is the liability of the Banker?: Bank is liable to the drawer for paying post
dated cheque as bank is not justified in paying post dated cheque. The bank will be liable to drawer for damages on
account of wrongful dishonour of cheque.
32. Which type of preferential shares are treated as part of Tier I capital of the Bank?: Perpetual Non
Cumulative Preference Shares.
33. As per RBI guidelines, all banks are required classify business in various business segments with effect from
31-03-2008. The segments are: (a) Treasury (b) Corporate /Wholesale Banking, (c) Retail Banking, (d) Other Banking
Business. The geographical segments are 'domestic' and 'international'.
34. Customer of your bank asks for cash payment of crossed DD.What would you do?Generally payment only
through bank account. However, bank can pay after duly satisfying the genuineness of the draft and payee but bank will
continue to be liable to true owner if recipient is not true owner.
35. A cheque is presented for payment in which the amount in words and figures is different. Bank
should pay which amount?: amount written in words will be paid.
36. Whether aPrivate Limited company can be a partnerwithPublic Limited company to formaPartnership?Yes
37. In the context of Nomination, which is correct statement?:Signatures of nominee not required on
nomination form. Nominee's name should be mentioned on FDR if agreed by the customer.
38. A bearer cheque of Rs.7,000/- was presented. The cashier informed that the cheque can not be passed
as the balance is less by Rs.700/-. The tenderer credited the amount of shortfall and the cheque was paid.
Customer disputed the transaction.Whether bank is liable?: Yes. For disclosing balance to third party, bank is
liable to account holder.
39. _____________ As per KYC guidelines, the periodicity of obtention of photograph and latest
address proof for Low Risk. Customers is Medium Risk years and High Risk Customers is : 10
years, 8 years 2 years.
40. When an order passed by Banking Ombudsman is accepted by the complainant, the same
should be complied within: 1 month from the date of receipt of acceptance from the complainant.
41. Penalty for delay is per day if information is not furnished within prescribed time under Right to Information
Act:

42. A crossed DD was paid by cash. What risk is there for the Bank: Bank will be liable to true owner of
the DD if payment made to a person other than true owner (Section 129 of N I Act).
43. A cheque is written in English and Regional Language. Whether it can be paid?: Yes. A cheque
written in different language can be paid if otherwise in order.
44. Who cannot become a partner in a firm as per supreme court judgment HUF
45. Introducers liability / responsibility in case of an account holder defrauding Bank is : To assist the
Bank in locating the a/c holder - does not have legal liability
46. Nomination - Minor can be a nominee.
47. Inoperative accounts: 2 Years & above not operated.
48. RTI Act - party seeking information need not disclose the reasons for which the information sought for.
49. Counterfeit notes returned after police verification, the same has to be preserved for 3 years
subject to half yearly verification.
50. Validity period of cheque reduced to 3months from 1.4.12 as per : RBI Guidelines under sec 35A of B R Act
51. Crossed cheque payment across the counter to the authorized Officer of collecting Bank - can be
made and there are no violation as per NI Act. 255.
52. The consequence of non registration of Partnership - firm cannot sue others for its dues.
53. Banks are required to implement the award of Ombudsman unless a decision is taken to appeal
against the same within one month from the date of receipt of acceptance of the award by the
complainant.
54. Account holder A & B want to substitute their name with the name of their sons C & D in the
account. What should the bank do?: Substitution of all names is not allowed. At least one of the original
account holder should be retained in the account.
55. When only image of cheque is sent to the paying bank while sending cheque for collection instead
of sending the physical cheque, the process is called: Cheque Truncation
56. A Cheque partly written in English & partly in regional language is presented for-paymentWhat should
the bank do?: May be paid, if otherwise in order and the language other
than.English is the regional language of the area where the cheque is presented.
57. An authority has been granted in an account You have received information about the death of the
Principal. Today, you receive a cheque signed by the agent which is dated prior to the death of the Principal.What
should the bank do? : Cheque can not be paid as authority of agent comes to end with the death of the Principal.
58. You aremaintaining current account in the name of the Trust. You receive notice of death of one of the
trustees. After this notice, a cheque signed by the deceased trustee is presented for payment.What should the bank
do?: Chequemay be paid, if otherwise in order.
59. As per Consumer Protection Act, the period for filing appeal to State Commission against decision
of the District Forum is: maximum 30 days
60. Who can not be full fledged partner: Minor
61. Can Karta of HUF appoint Agent or delegate the powers to other co-parcener: Yes, he can do so.
62. Money deposited after receiving order may be attached in the case of: attachment order
63. Original & duplicate draft presented simultaneously for payment: Duplicate should be paid &
original should be returned.
64. Company has registered office at Delhi, factory at Kolkata & loan taken at Mumbai. For creating
equitable mortgage title deeds can be deposited at: any notified city.
65. Reasons for avoiding advance to Un-Registered Partnership Firm: Firm can not sue against anyone
for recovery of its debts but anyone can sue against the firm.
66. What is the effect of 'Not Negotiable Crossing'?: Transferee does not get better title than the transferor.
67. Payment of cheque can be stopped by: only Drawer of the cheque
68. Account payee crossing defined in:-Not defined any where
69. What is the current rate of interest paid on CRR?: NIL
70. How can be the transferability of Bill of exchange can be restricted? Bymaking restrictive endorsement
71. If on a Bill-of Exchange, two parallel lines are drawn and not negotiable is written between the lines, what
kind of the crossing will be there: Provisions relating to crossing are not applicable to Bill of Exchange.
72. Within priority sector, what is the allocation to weaker section?: 25%
73. Maximumtime within which replymust be given underRight to information act? 30 days
74. What is the status of Nominee? Trustee of Legal heirs
75. Safe deposit vault is governed by provisions of: Transfer of Property act
76. A cheque signed by agent has been presented after his death for payment.What should the bank do?: The
e
42. A crossed DD was paid by cash. What risk is there for the Bank: Bank will be liable to true owner of
the DD if payment made to a person other than true owner (Section 129 of N I Act).
43. A cheque is written in English and Regional Language. Whether it can be paid?: Yes. A cheque
written in different language can be paid if otherwise in order.
44. Who cannot become a partner in a firm as per supreme court judgment HUF
45. Introducers liability / responsibility in case of an account holder defrauding Bank is : To assist the
Bank in locating the a/c holder - does not have legal liability
46. Nomination - Minor can be a nominee.
47. Inoperative accounts: 2 Years & above not operated.
48. RTI Act - party seeking information need not disclose the reasons for which the information sought for.
49. Counterfeit notes returned after police verification, the same has to be preserved for 3 years
subject to half yearly verification.
50. Validity period of cheque reduced to 3months from 1.4.12 as per : RBI Guidelines under sec 35A of B R Act
51. Crossed cheque payment across the counter to the authorized Officer of collecting Bank - can be
made and there are no violation as per NI Act. 255.
52. The consequence of non registration of Partnership - firm cannot sue others for its dues.
53. Banks are required to implement the award of Ombudsman unless a decision is taken to appeal
against the same within one month from the date of receipt of acceptance of the award by the
complainant.
54. Account holder A & B want to substitute their name with the name of their sons C & D in the
account. What should the bank do?: Substitution of all names is not allowed. At least one of the original
account holder should be retained in the account.
55. When only image of cheque is sent to the paying bank while sending cheque for collection instead
of sending the physical cheque, the process is called: Cheque Truncation
56. A Cheque partly written in English & partly in regional language is presented for-paymentWhat should
the bank do?: May be paid, if otherwise in order and the language other
than.English is the regional language of the area where the cheque is presented.
57. An authority has been granted in an account You have received information about the death of the
Principal. Today, you receive a cheque signed by the agent which is dated prior to the death of the Principal.What
should the bank do? : Cheque can not be paid as authority of agent comes to end with the death of the Principal.
58. You aremaintaining current account in the name of the Trust. You receive notice of death of one of the
trustees. After this notice, a cheque signed by the deceased trustee is presented for payment.What should the bank
do?: Chequemay be paid, if otherwise in order.
59. As per Consumer Protection Act, the period for filing appeal to State Commission against decision
of the District Forum is: maximum 30 days
60. Who can not be full fledged partner: Minor
61. Can Karta of HUF appoint Agent or delegate the powers to other co-parcener: Yes, he can do so.
62. Money deposited after receiving order may be attached in the case of: attachment order
63. Original & duplicate draft presented simultaneously for payment: Duplicate should be paid &
original should be returned.
64. Company has registered office at Delhi, factory at Kolkata & loan taken at Mumbai. For creating
equitable mortgage title deeds can be deposited at: any notified city.
65. Reasons for avoiding advance to Un-Registered Partnership Firm: Firm can not sue against anyone
for recovery of its debts but anyone can sue against the firm.
66. What is the effect of 'Not Negotiable Crossing'?: Transferee does not get better title than the transferor.
67. Payment of cheque can be stopped by: only Drawer of the cheque
68. Account payee crossing defined in:-Not defined any where
69. What is the current rate of interest paid on CRR?: NIL
70. How can be the transferability of Bill of exchange can be restricted? Bymaking restrictive endorsement
71. If on a Bill-of Exchange, two parallel lines are drawn and not negotiable is written between the lines, what
kind of the crossing will be there: Provisions relating to crossing are not applicable to Bill of Exchange.
72. Within priority sector, what is the allocation to weaker section?: 25%
73. Maximumtime within which replymust be given underRight to information act? 30 days
74. What is the status of Nominee? Trustee of Legal heirs
75. Safe deposit vault is governed by provisions of: Transfer of Property act
76. A cheque signed by agent has been presented after his death for payment.What should the bank do?: The

cheque will be paid if otherwise in order.
77. Purpose of star series notes: To replace defectively printed notes
78. Customer-bank relationship in locker account: Lessee-Lessor
79. Upto what amount District forumcan be approached under Consumer Protection Act?: Rs.20 Lacs
80. Appeal against the award of Ombudsman can be made by the bank within: 30 days of receiving the
acceptance from the complainant.
81. Cheque issued by director of a company and presented after his death will be: Passed if in order
82. What would be the action of central bank in recession?: create liquidity by decreasing CRR and lower
the repo rate.
83. Ante dated cheque like cheque dated 15.12.07 is presented for payment on 1.1.08 whereas_ the account was
opened on 20.12.07 : Cheque should be passed
84. If amount in words and figures differ on a cheque and amount written in words is higher than the
amount written in figures, then as per sec.18 of NI Act, which amount should be paid?: amount written in
words
85. Nomination facility is not available in the case of : Trust A/c.
86. customer service Committee meeting held on : Monthly basis
87. A person wants to open a joint account with his wife in such a way that the account can be operated
by him only during his lifetime and she should be able to operate the account only after his death. The
account has to be opened with the instructions: 'Former or survivor'.
88. For wrongful dishonour of the cheque the bank is liable to: the drawer of the cheque
89. Banks print cheque books having similar particulars. The format of cheque is prescribed by which Act
: Not defined in any Act. It is as per practice. CTS 2010 advised by RBI
90. Which crossing takes away the feature of assumption of defective free title available to the transferee
: Not negotiable crossing
91. Who is appointed to tackle public complaints against the public authorities : Ombudsman
92. The facility of nomination is not available to Trust account because it is account : Non-individual
(facility of nomination is available only in the case of individual(s).
93. The true owner of a cheque has been deprived of his right by collection of the cheque for a different
person. This is called Conversion
94. As per recent RBI/Govt. guidelines, pensioners can open account jointly with: spouse, to be operated
as either or survivor or former or survivor.
95. While paying a bearer cheque, signatures are obtained on the back side of the cheque. Why ? : As
evidence of payment
96. Whether Minor can nominate ? no. On his behalf nomination will be done by a person legally
competent to act on his behalf.
97. Cheque is dated before date of its presentation is called: Antedated cheque
98. An endorsement in which endorser excludes his liability is called : sans recourse
99. When a company is financed against the security of hypothecation ormortgage of itsmovable property, the
company is required to file particulars of charge with: Registrar of Companies (no registration of charge required for
pledge).
100. Who is called as Holder as per N I Act?: Who is entitled to possession of the instrument in his own
name (actual possession is not necessary).
101. If a cheque is dishonoured due to insufficient funds, then as per section 138 of N I Act, court may
award imprisonment up to: 2years
102. On the face of a cheque, the name of a bank is written without two parallel lines. This will amount to : special
crossing
103. A/c payee crossing is defined in : it is not defined in any Act. It is as per practice
104. Nomination facility for deposit accounts is available under: 45ZA & 45 ZB of the BR act
105. Maximum amount of deposit which a bank may ask while allowing locker facility to a customer:
Advance rent for 3 years and locker breaking charges
106. A solicitor has account in his name and in the name of his client. Garnishee order is received in the name of the
solicitor.Whether the same will be applicable in the name of client also: No because two accounts are not in the same
right and same capacity.
107. Which of the following is not amaterial alteration? Changing bearer to order
108.
109. A bill issued without consideration is called: Accomodation Bill
110. There is a joint account in the name of A &B. A cheque is drawn by A but the alteration in the amount is
authenticated by B.Whether bank can pay the cheque: Yes provided the operation is either or survivor.
111. The term used for conversion or transfer of property derived from a criminal offense for the purpose
of concealing, or disguising, the illicit origin of the property is called: Money laundering
112. In which of the following situations bank will not be a holder in due course?: When bank credits the
account of the customer after receipt of funds on account of cheque sent for collection
113. The rate at which RBI rediscounts the usance bills of banks is called: Bank Rate
114. Which of the following is not true about RBI (a) RBI announces credit and monetary policy (b) RBI
maintains forex reserves (c) RBI allows ways and means advance to central Govt (d) Banking Secretary of
Union Govt is the Governor of RBI Ans is (d)
115. In the case of IPO, the company is required to allot shares ormake refund within: 30 days of the closure of
the issue in case of fixed price public issues; 15 days in case of book built issues and 15 days in case of right issues
112. Bankcanchargecollectionchargesofnotmorethanfor_outstationchequesofRs10000toRs1lacinsavingbank:Rs.100
113. Which of the following cheques can not be paid by the bank? : A cheque on which signatures of drawer have
been forged irrespective of the cleverness in forgery and though these appear to be same as that of the drawer.
114. FIU stands for : Financial Intelligence Unit (India)
115. Two cheques have been presented to you as paying banker. One is dated prior to opening the account and
other is dated prior to issue of cheque book.What will you do as paying banker?: Both cheques will be paid.
116. KYC and FIU in India are associated with: preventing money laundering
117. Articles of Association mentions: directors' powers
118. Garnishee order is not applicable on: (a)cash received after two hours of receipt of Garnishee order
(b) amount received for safe custody (c) undrawn balances in cash credit accounts
119. A person having locker has expired. The nominee comes. A sealed cover is found. What will you do ?
: It will be delivered to him as part of locker contents without opening the packet.
120. A bill was presented on 10.5.2005 and accepted on 12.5.2005. The bill was due for payment on
29.07.2005 and was returned. The last date for filing suit in this case is : 29.07.2008
121. A listed bank has to prepare and publish balance sheet on quarterly basis as per: SEBI guidelines
122. There are certain instruments defined as negotiable instruments under law and certain instruments used as
negotiable instruments as per practice.Which of the following is not a negotiable instrument as per NI Act: Dividend
warrant
123. On repayment of_debt of a company, satisfaction of charge shbuld be filed with ROC within: 30 days
124. A Trust Deed is silent about loans by the trust. The trustee approaches for a loan. Under these
circumstances what should the bank do?: No loan can be raised
125. Which of the following un/under-stamped document can not be revalidated by paying penalty: None of
these as all documents can be revalidated. (However, as per question Demand Promisory note cannot be
revalidated).
126. A person of 65 years of age can not nominate which of the following persons: Trust
127. The aggregate limit for capital market exposure of a Bank is: 40 0/0 of net worth at the end of previous year
128. The aggregate limit for capital market exposure of a Bank is: 40 0/0 of net worth at the end of previous year
129. A minor approaches for a loan. Which type of loan can be given to him: loan can not be sanctioned
other than for necessities.
130. A public limited company can start business after receiving from Registrar of Companies.
Certificate of commencement of business.
131. Which of the following does not match in banker/customer relation : Locker facility - Bailee/Bailor
132. Committee on Procedures and Performance Audit of Public Services (CPPAPS) was headed by:
S.S. Tarapore
133. Customer service code has been mentioned in : Banking Codes and Standards Board of India.
134. Cheque received in clearing signed by whom will not be passed out of the following: signed by a
person who has ' been declared insolvent.
135. Whether a customer can approach Ombudsman without first approaching the Bank : Approaching the
bank first is a pre-condition.
136. In case a forged note is detected in the cash tendered at bank counter, what should the bank do?:
The Note should be impounded and not returned to the tenderer.
137. If a guardian is appointed by court, minor will become major at the age of: 18years
138. A Cheque with forged signatures is presented for payment and is paid. Bank will be liable to:
Customer (Drawer of the cheque)
139. Protection is available to the collecting banker in case of : Crossed cheques
140. Which is not a General Crossing: Name of a bank written between two parallel lines
141. If time is not mentioned on a Bill of Exchange, it will be payable: on demand
142. Format of Cheque has been prescribed in which Act?: None because it is as per Practice and Usage
143. In an account of Club with you, cheque has been been presented for payment signed by the secretary
who has died. What should the bank do?: It will be paid if it not dated subsequent to date of death.
144. Garnishee order is applicable for: credit balance in OD and not for cheque sent for collection.
145. Bank Guarantees are issued as per provisions of : Indian Contract Act
146. cheque truncation means: converting physical cheque to electronic image and stopping physical flow
of a paper cheque. 660_ Foreign currency paid to taxi driver, shop keeper, can be accepted by: Authorised
persons.
147. A bank cannot acquire either as owner or as pledgee shares in a company more than:. 10 % of paid
capital of the company or 10% of the•paid up capital and reserves of the bank, whichever is lower.
148. For formation of a company, Registrar of Companies will issue : certificate of incorporation
149. There is a joint account in the name of A & B payable to either or survivor. On the death of A, the
amount will be payable to (a) nominee (b) B, the survivor.
150. Co is in liquidation, funds are at the disposal of : Liquidator
151. Guardian appointed by will of the father is called: testamentary guardian
152. The bill is dated 15/03/04, the date of acceptance: 20/03/04. The bill returned unpaid on
25/03/04. The limitation period will be available up to : 25/03/07
153. Which of the following documents does not constitute document of title to goods:Airway bill
154. DD can be revalidated within: any time (practice may differ In different banks)
155. Which crossing is a Special Crossing : Name of Bank is written in the cheque with or without parallel lines
156. Supervision of banks is done by RBI under which act: RBI Act / BR Act / Jilani Committee Report / NI
Act: Banking
Regulation Act
157. A minor is aged 15 years, who is illiterate. Which type of self operated a/c can be opened -SB/ RD / FD
none
158. Which of the following can open SB a/c? State Electricity Board/ Indian Bank Association/ Municipal
corporation: Indian Bank Association.
159. During death claim settlement for a locker with nomination, you find one sealed packed. What you will
do: Deliver the sealed packet without opening it.
160. In a Flying club, the Secretary & Treasurer are authorized to sign. A Cheque is presented for payment across the
counter. In between it has been informed that Secretary has died, what you will do? :Will be paid, if otherwise in order
161. Revival of limitation for recovery of a time barred loan is possible by: obtaining fresh promise to pay
under provisions of Indian Contract Act.
As per Supreme court decision, HUF cannot be a partner because: HUF is not a natural or legal person
162. As per Prevention of Money laundering Act, preservation of records relating to closed accounts upto:
5 yr from date of closure of account.
163. Banks can provide information about the customer to another Bank: General in nature, without any
responsibility
164. Board of Directors want to borrow money in excess of paid up capital and reserves of the company:
can be done through a resolution passed by shareholders in the general meeting
165. Other than aBill of exchange or promissory note, the documentwhichwas executed abroad is required to bestamped
on
its arrival in India within: 3 months of its arrival
166. Administrator is appointed in case of: to realize assets and pay off liabilities of a person who has died
without writing a will.
Under Ombudsman scheme, which type of case not entertained?: advocate representing the customer
167. Which of the following is not a valid cheque for payment by the bank-l)different ink & handwriting 2)
cheque with prior date 3) cheque with impossible date 4) Mutilated cheque: Mutilated cheque
168. The liability of the drawer of bills of exchange is prime till it is not accepted by the drawee after that
prime liability becomes of Drawee.
169. Whether Pvt Ltd. Co. can be partner with Partnership Firm: Yes
170. Provision on standard assets to be shown in balance sheet in other liabilities and provisions.
Provision for NPA is deducted from gross advances.
e
171. Counterfeit note received at the counter what to be done?: Impound the currency note.
172. No noting on currency note, directions issued by RBI under section 35A of BR Act.
173. Cross cheque can be paid at counter if presented by other bank.
174. Payments of a forged draft.Who will lodge FIR paying or collecting bank: Paying Bank.
175. Borrowing powers of board of directors are contained in: Articles of Association
176. Locker can be broken open after notice to the hirer if the same is not operated for:more than three years for
mediur-n risk category or one year for a higher risk category, and the locker-hirer does not respond nor operates the
locker.
177. If a complainant is not satisfied with the award or his complaint is rejected by the Banking ombudsmen, he can
prefer an appeal to Deputy Governor, RBI within: 30 days of the of the date of receipt of communication regarding
award or rejection of the complaint.
178. An account was opened on 24.11.2007 and the cheque book was issued on 30.11.2007. Two
cheques dated 18.11.2007 & 22.11.2007 are presented for payment on 08.12.2007. What should the bank
do?: The cheques can be passed if otherwise in order.
179. In case of wrongful dishonour of cheque, bank is liable to: account holder only
180. Who can seek information under.Right to Information Act: Any citizen of India can ask for information
181. The Garnishee Order is applicable on the account of a customer when the relationship between
banker customer is: Debtor & Creditor.
182. A private limited company with Registered office at Bangalore has raised loan froma branch located at
Mumbai. For creating equitablemortgage, title deeds can be deposited at: Mumbai, Kolkatta, Chennal or any other
notified place.
183. A cheque is presented for payment in which amount in figures ismentioned as Rs 10,000 whereas the amount in
words ismentioned as Rs Ten lakh only. In terms of section 18 of the NI Act, what should the bank do?: The amount
written in words should be paid.
184. A cheque of Rs.4700/- was presented for payment when the balance in the account was Rs. 4000/-. On being
returned for insufficient funds, the presenter enquired the balance and then deposited Rs.1000/- in the account.
Thereafter, the cheque was passed. The drawer of the cheque has lodged claimagainst the bank. Is the bank liable?:
Yes, the bank is liable for breach of secrecy.
185. When a letter is signed by the borrower and based on that letter bank delivers the document of title to
goods to the borrower, such letter is called as: Trust Receipt
186. How much charges are charged in addition to normal collection charges and out of pocket expenses
for providing instant credit facility for outstation cheques:Nil
187. A limited company has registered office at Chennai whereas loan has been raised from bank branch
at Mumbai. The charge will be registered with the ROC at: Chennai
188. A partnership firm conducting business other than the banking business has more than 20 members
as partners. Whether this is allowed?: Such association is called illegal association as per Companies Act
189. Under Prevention of Money Laundering Act, banks are required to send cash transaction report in
respect of cash deposit or withdrawal of more than Rs 10 lakh in a month from one account within: 15 days
from the close of the month.
190. Who is primarily liable on Bill of exchange which has been accepted?: Acceptor (Drawee) of the
Bill.
191. A cheque crossed specially to a bank is presented by the same bank to paying bank for cash
payment. What should the paying bank do? Bank can make cash payment.
192. Who can make nomination in the deposit account of a minor?: Guardian on behalf of the minor.
193. Who can be a nominee?: Only an individual
194. If a depositor dies, payment to nominee or legal heirs should be made within: 15 days of
completion of formalities.
195. What is the relationship between bank and customer if he has left certain goods with the bank by
mistake: Bank is trustee and Customer is beneficiary
196. Appeal against the award of the Banking Ombudsman can be made to Deputy Governor, RBI within
days of the receipt of copy of award from the Ombudsman: 30 days
197. A cheque was dishonoured despite sufficient balance in the account. The bank will be liable to:
Drawer of the cheque and not to the payee.
198. Maximum amount of fine under section 138 of N I Act for dishonour of cheque due to insufficient
funds is: twice the amount of cheque.
199. Banks print cheque books having similar particulars. The format of cheque is prescribed by which Act : It is a
practice
200. Bearer uncrossed cheque can be paid to whom: To the bearer
201. Who is appointed to tackle public complaints against the public authorities :Ombudsman
202. On, other than a negotiable instrument, what is the time period for payment of stamp duty, if the
document is executed outside India : 3 months
203. May I help you counter is to be provided by bank branches other than : Small branches
204. The facility of nomination is not available to Trust account because it is account : Non-individual
205. In case of a jointly operated joint account, the nominee can obtain payment, when : none of the account holder is
alive
206. Which crossing is not a general crossing :When name of bank is written within or without parallel lines.
207. The true owner of a cheque has been deprived his right by collection of the cheque for a different
person. This is called : Conversion
208. A bank branch receives a counterfeit note of Rs.1000, which customer wants back. What the bank
should do : Impound the currency note but credit full amount to customer. Receipt not to be issued to
depositor.
209. When rate of interest is expressed by adjusting the impact of inflation, this is called : Real rate of
Interest
210. Banks can ask for deposit of advance rent on hiring a locker for a period up to : 3 years
211. The drawer of a cheque wants that the endorsee should not get a defect free title when he receives an
endorsed cheque.What type of crossing would be required : Not-negotiable crossing.
212. The crossing on a cheque is required to be cancelled.Who can do so: Drawer