CAIIB ABM 2

 02. Planning

01. Planning is the process of engaging in thoughtful discussion before undertaking a task, which entails engaging in in-depth contemplation about that task and going into all the details meticulously to be ready with an execution and implementation plan, to save both effort and time.

02 Planning involves doing an objective analysis of future requirements, to facilitate the modification of ongoing activities considering the objective that has been set.

03. Planning involves research that is done deliberately and consciously to formulate the design and the orderly series of actions, through which it is anticipated to succeed in accomplishing goals.

04. During the planning, each possibility, both present and future, that is even remotely connected to the, will be taken into consideration.

05. The planning process incorporates consideration of every conceivable risk, including losses, defections, and so on.

06. Planning process engages deeply in various activities to give directions, prescribe methods, evolve procedures, and transform activities, to decide to accomplish the business goals in an efficient and effective manner.

07. The process of planning is based not only on the finances, time frame, infrastructure, and resources, but also since decisions and particular or directional plans, which might be strategical, tactical, or operational, are made based on those considerations.

08. Planning covers

a) What is to be done?

b) Where it is to be done?

c) How it is to be done?

d) When it is to be done?

e) Who will execute?

Page 21 of 182

02. Planning

01. Planning is the process of engaging in thoughtful discussion before undertaking a task, which entails engaging in in-depth contemplation about that task and going into all the details meticulously to be ready with an execution and implementation plan, to save both effort and time.

02 Planning involves doing an objective analysis of future requirements, to facilitate the modification of ongoing activities considering the objective that has been set.

03. Planning involves research that is done deliberately and consciously to formulate the design and the orderly series of actions, through which it is anticipated to succeed in accomplishing goals.

04. During the planning, each possibility, both present and future, that is even remotely connected to the, will be taken into consideration.

05. The planning process incorporates consideration of every conceivable risk, including losses, defections, and so on.

06. Planning process engages deeply in various activities to give directions, prescribe methods, evolve procedures, and transform activities, to decide to accomplish the business goals in an efficient and effective manner.

07. The process of planning is based not only on the finances, time frame, infrastructure, and resources, but also since decisions and particular or directional plans, which might be strategical, tactical, or operational, are made based on those considerations.

08. Planning covers

a) What is to be done?

b) Where it is to be done?

c) How it is to be done?

d) When it is to be done?

e) Who will execute?

Page 22 of 182

09. The process of planning consists of the following steps:

a) Opportunity Analysis:

b) Objective Establishment:

c) Developing Planning Premises:

10. Opportunity Analysis entails analysing the opportunity, being aware of the opportunity, and basing the development of the business plans on this opportunity.

11. Opportunity Analysis exercise involves comprehending the existing circumstances of the available opportunity and having a general understanding of its future prospects.

12. Without knowing the objective, it is impossible to develop a strategy for its accomplishment. Objectives are, therefore, the initial step in the planning process, which is typically a political endeavour.

13. The collection of future forecasting-derived assumptions is known as the planning premises determination.

14. The process of determining the availability of various means to attain goals is referred to as “identifying alternative means.”

15. Following the discovery of additional methods and an examination of both their strong and weak points, the planner should assess the alternative methods.

16. In the stage “selecting the best alternative.” the question that must be resolved is whether the initial plan is superior or whether the alternate strategy is going to be effective.

17. Derivative plans refer to sub plans or secondary plans.

18. Planning is a continuous process for ensuring attainment of business objectives.

19. Planning is a process of fixing objectives and finding ways of accomplishing them

Page 23 of 182

20. The following points highlight the importance of planning:

1) Helps Goal Creation

2) Provides Direction

3) Tackles Uncertainty

4) Discards overlapping and wasteful activities

5) Promotes Innovative Ideas

6) Decision Making Facilitation

7) Controlling

21. A SMART goal is a carefully planned, clear and trackable objective.

22. SMART is an acronym that stands for Specific, Measurable, Achievable, Realistic, and Timely.

23 The main advantages of planning are as follows:

i. Coordination of Various Activities:

ii. Optimisation of Resources:

iii. Inspirations and Responsibilities:

iv. Establishment of Execution Principles:

24. Some of disadvantages of planning are as under:

i. Forestalls Activity:

ii. Lack of Concern:

iii. Forestalls Adaptability:

iv. Hinders Innovativeness:

25. Death by Planning is “high-level procrastination”,

26. Death by Planning is when an individual or a team spends so much time in the planning phase that they run out of time to execute the plan/project.

27. During the planning process, goals are formed from the organisation’s mission and vision.

28. The phrase “management by objective” (MBO) was coined by Peter F. Ducker and first appeared in his book “The Practice of Management,” which was published in 1954.

29. Management by Objectives is the term given to the process that is used for goal planning and the establishment of clear parameters for those goals (MBO).

30. The MBO technique, in its most fundamental form, refers to a procedure that involves the management and the employees working together to jointly establish, record, and then monitor the goals for a particular period of time.

31. MBO process includes the following

Establish goals and desired outcomes for each subordinate in a conference between the management and the concerned subordinate.

Set performance standards.

Assess performance achieved against goals set for the employee through frequent performance review meetings between the manager and the subordinate.

Identify reasons for shortfall and give feed-back for improvement.

Establish new goals and new strategies for the coming year.

32. Planning is the central idea behind the ‘Management by Objectives’ and it implies that an Organisation and the people, who make up that Organisation, aren’t just responding to incidents and issues; rather, they are being pro-active and are taking preventative measures.

33. Employees are allowed to define measurable personal goals in accordance with the corporate goal, to fulfil the criteria of ‘Management by Objectives’.

34. The five steps that make up the management by objectives technique are as follows:

a) The first thing to do is either establish or alter the organisational goals for the whole company. The company’s mission and vision should serve as the basis for developing this comprehensive overview.

b) The second step is to communicate to employees the goals and priorities of the organisation.

c) The third step is to encourage participation from the staff members in the process of setting individual goals.

d) The monitoring of the progress made by the staff members is the focus of the fourth step.

e) The fifth step is to evaluate and then reward the progress that employees have made.

35. “Environmental Analysis” refers to the process of examining all of the factors, both internal and external, that have an impact on the performance of the organisation. This can be done both systematically and qualitatively.

36. Environmental Analysis Steps

a) Identifying

b) Scanning

c) Analysing

d) Forecasting

37. PESTLE Analysis is a method for evaluating the business environment and the potential impact that it could have on the performance of the organisation.

38. The acronym PESTLE refers to the following six internal factors that can have an impact on company - a) Political ; b) Economic; c) Social ; d) Technological; e) Legal, and f) Environmental.

39. PESTEL analysis involves three steps:

a) Identify the relevance of each of the PESTEL factors to the firm

b) Identify and categorize the information for each factor

c) Analyze the data and draw conclusions

40. Advantages of PESTLE analysis:

a) Cost effectiveness

b) Easy framework

c) Deep understanding

d) Development alertness

e) Opportunities exploitation

41. An internal environment analysis is a tool that allows for a comprehensive review of all aspects of a company’s operations, internal guidance, and mission. This review is done in order to identify opportunities and threats.

42. This internal analysis, which is initiated by the management of the company, is an attempt to identify the areas of risk and opportunity in the business.

43. Internal analysis reveals both the organization’s strengths and its weaknesses in these areas.

44. Internal Analysis tools

a) GAP Analysis

b) Strategy Evaluation

c) SWOT Analysis

45. GAP Analysis is a tool for conducting assessments that gives organisations the ability to analyse and identify internal weaknesses as well as performance deficiencies.

46. The process of analysing the outcomes brought about by the execution of a strategic plan is referred to as Strategy Evaluation.

47. In the process of carrying out the Strategy Evaluation, it is very useful and helpful to check that everybody understands the business strategy and works well with it.

48. The process of planning begins with the establishment of objectives, which is a crucial step.

Page 27 of 182

49. The planning principles that serve as the basis for the activity of planning are referred to as premises.

50. Planning is always for the future that cannot be foretold.

51. The term “forecast” refers to making a prediction about the future, either about what will happen or about what will not happen; this prediction will not always be true but will sometimes provide accurate outcomes.

52. The main criteria for evaluating alternatives are:

a) Cost, Profitability, Break-even Point

b) Market, Sales potential, Competitive reaction

c) Ability to meet corporate objectives

d) Strengths and weaknesses

e) Timing

f) Intuition about success

53. Contingency plans can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.

54. The contingency plans are referred to as “Plan B” because they always work as an alternative course of action if things do not go as planned.

55. A contingency plan is defined as an action of designing to assist the company in responding to an event that may or may not occur.

56. The term “contingency planning” refers to more than preparing for major catastrophes and natural disasters. It can also put you in a position where you are susceptible to more prevalent concerns, such as the loss of data, staff, clients, or commercial relationships.

57. Contingency planning is a response to risk faced by an organisation; however, in certain circumstances, it may be safer or more cost-effective to deal with it in other ways and to avoid risk, such as by investing in new equipment or to share the risk by purchasing an insurance policy. Alternatively, one can choose not to formally plan for certain low priorities risk but to manage the risk when it does occur.

Page 28 of 182

58. Contingency Planning begins with the identification of both beneficial and unfavourable events that could possibly derail a strategy or strategies.

59. Contingency Planning involves the following:

a) Specifying trigger points.

b) Estimating when contingent events are likely to occur.

c) Assessing the impact of each contingent event.

d) Estimating the potential benefit or harm of each contingent event.

e) Developing alternate plans.

f) Being sure that the contingency plans are compatible with current strategy and that they are financially feasible.

60. The process of predicting or estimating the future based on the evidence from the past and the present is referred to as forecasting.

61. Types of Forecasts

1. Long Term Forecasts

2. Medium Term Forecasts

3. Short Term Forecasts

62. Forecasting for the long term typically covers a period of time ranging from three to five years.

63. The term “short term forecasting” refers to planning that is done for a period that is relatively brief, with the planning period being less than one year and the duration ranging from one to six months.

64. Forecasting process and its elements

a) Identifying and Developing the Structure:

b) Estimating future Course of Business:

c) Analysis of Deviations in previous forecasts:

65. Actual selection of one course of action, from among several alternatives, is called decision-making.

66. Decision-making is a rational process and, to have a high degree of effectiveness, should be based on systematic analysis of all the relevant facts and not based on just intuition.

67. Decision making plays an important role in enhancing the efficiency of the organisation as decisions relating to future course of action, are taken in advance.

68. Decision making by groups, generally, results in the following advantages:

a) Thorough evaluation:

b) Implement of decisions is easier:

c) Enhanced team spirit:

69. Disadvantages of Group Decisions

a) Time consuming and costly:

b) Disagreements and indecisions:

70 The planning process sets the foundation for (a) Controlling.

Basics of Management ABM CAIIB

 01. Management is necessary for making our life or any task or venture we

undertake, including any industrial, business or service activity, successful.

02. The term ‘Management’ could be referring to the persons running an

organisation collectively, who are responsible for decision making.

03. The three components of management refer to their organising skills, their

skills as an entrepreneur and getting the best out of their team members.

04. The skills for organising would obviously include the traditional skills,

principles and the techniques of management which have evolved over a period

of time and are continuously evolving.

05. Henri Fayol, widely acknowledged as the founder of modem management

methods, was an early management writer who was instrumental in contributing

immensely to ‘formal organisation theory’.

06. The theory propounded by Henri Fayol included the six types of organisational

activities, which also included management. It also explained the various functions

and principles of management.

07. Frederick Winslow Taylor, introduced methods to improve the industrial

efficiency.

08. Taylor’s book ‘The Principles of Scientific Management’, published in the year

1911, is the most influential management book of the twentieth century.

09. Scientific management, also known as ‘Taylorism’, is a management theory

which was used for analysing and synthesizing workflows with the main objective

of improvement of economic efficiency and labour productivity.

10. Peter Drucker, the famous Management Guru, in his book Management: tasks,

responsibilities, practices.

11. Management is not common sense alone but a discipline, a culture and an art

and science at the same time.

12. Management represents people, and their achievements or failures denote

the effectiveness of management or mismanagement of the organisation’s affairs.

13. Productivity is very important in any business organisation, and there is a 

continuous demand on the people at the helm of affairs to increase productivity 

for increasing profits to meet the expectations of the stakeholders and the society. 

14. The process of management involves multiple actions performed in a series to 

achieve the objectives of the business enterprise. 

15. The process of management can be classified as a social process as it involves 

relationships and co-operation between people and their team effort.

16. The complexity of management has laid down the foundation of breaking

down each activity into various parts or sub-activities so that we can understand 

the complete significance of each activity. This is the reason for division of

management tasks into different elements: planning, organising, staffing,

directing and controlling. 

16. A manager is responsible for planning, for directing and leading the workers 

and other staff, and for monitoring and controlling performances at work, through 

proper governance and risk management.

17. The System School of Management thought was propounded by Daniel Katz, 

an American Psychologist, and Ludwig Von Bertalanffy, an Australian Biologist. 

They advocated the concept of management being an open system, which is 

required to interact with the environment constantly for getting resources, which

are both valuable and limited.

18. The main objective of the research undertaken by the systems school was to 

understand the external environment and conditions faced by an organisation 

and finding ways of handling such conditions. 

19. The open system approach is important because of the interaction between an 

organisation and the outside forces and the outside influence impacting the 

actions taken by the organisation. 

20. The Contingency School of Management thought was an offshoot of the 

scientific, behavioural and systems approaches to management, and stated that 

there cannot be a unique way of managing an organisation and which can be 

labelled as the best way to manage or lead a business.

21. The best or the optimal way shall always depend or be contingent on the

internal and external environment. In other words, there cannot be a standard

solution to various business situations faced by the management. Each leader

might deal with the same situation in different ways, depending on his/her

leadership style.

22. The contingency school of management thought is criticised for being reactive

and for failure to be proactive and for not providing some standard principles and

procedures to be applied in specific situations.

This approach can turn out to be expensive in terms of money and time and

development of a proper theory of management principles becomes almost

impossible.

23. The Contemporary School of Management theory continues to advance

because of constant evolution of business practices and management techniques,

especially in the wake of technological advancements.

24. Total Quality Management focuses on the management of an organisation for

delivering high quality goods and services to its customers. The approach

originated in Japan after the Second World War.

25. The four main elements of Total Quality Management approach are:

a) Employee involvement:

b) Customer focus:

c) Standardisation:

d) Continuous Monitoring:

26. Deming, Juran and Crosby were three main contributors to the Total Quality

Management approach.

27. William Edwards Deming considered the quality of people more important

than the quality of products and accorded greater importance to how efficiently

the management planned, implemented and improved the projects.

28. William Edwards Deming laid down the fourteen principles of Total Quality

Management:

29. Learning Organisation may be defined as an organisation where all the 

employees take part in identifying and solving the problems which it faces, and 

which permits the organisation to continuously enhance its capacity to grow and 

learn, so as to achieve the organisational goals. 

30. A Learning Organisation shall be organised from the angle of problem-

solving and not from the perspective of efficiency and shall have a structure which 

is based on teamwork, employees who are empowered and shall have an open 

information system.

31. The major contributor to Learning Organisation school of thought is Peter 

Senge, has defined Learning Organisations in his book, The Fifth Discipline: The 

Art & Practice of Learning Organization.

32. The five disciplines of a Learning Organisation are:

1. Personal Master

2. Shared vision

3. Mental Models

4. Team learning

5. Systems Thinking

33. A Learning Organisation is important because:

a) It always tries to find improved and innovative ways of doing things and 

staying ahead of the competition.

b) The effectiveness and efficiency of a learning organisation is very high.

c) A learning organisation has higher productivity and output.

d) A learning organisation helps in enhancing the image of the company.

34. Several issues which are faced by the management include:

a) Which business model to adopt?

b) How to manage the information explosion?

c) How to manage the changes taking place every now and then?

d) How to face the threat of globalisation?

e) How to manage the impact of environmental sustainability?

35. Business models are based on the type of clients to be served, the product

offerings, the revenue earning model, ways of differentiating and sustaining

competitive advantages, and the manner in which products or services are

provided.

36. The management of a business entity shall be able to perform better if it

understands the business model followed by the organisation.

37. A business model covers the important operational characteristics and key

structural features of the business.

38. Some of the Business Models are

a) Solution Providing or Consulting Services Model

b) Profit Pyramid Model

c) Multi-component Systems Model

d) Advertisement Model

e) Switchboard Model

f) Time Model

g) Efficiency model

39. Under Solution Providing or Consulting Services Model, the business may

provide consulting services which help improve the client’s operations. IBM has

used this model.

40. Under Profit Pyramid Model, the customers are provided low-priced products

initially and gradually they are moved to expensive products, where the business

earns higher profits. General Motors followed this model.

41. Multi-component Systems Models have been used by companies like Gillette

and HP.

42. Advertisement Models offer the basic product free and make money through

advertising. YouTube, Google etc. are live examples.

43. Switchboard Model allows a firm to acts as an intermediary for connecting

multiple sellers with multiple buyers. eBay, Amazon, Flipkart are businesses which

have used this model successfully.

44. Time Model depends on how fast research and development happens. A

business which pioneers some new idea shall be successful initially, till other

competitors join the bandwagon.

45. A business following Efficiency model just waits for the market to mature with

standardisation of the product and enters with low-cost and low-margin products

with mass appeal. Southwest Airlines, Wal-Mart and Dell have been using this

model.

46. Blockbuster model is used by industries which are having the protection under

patent laws, like pharma and film industry, where profits depend on a few items

and are driven by star appeal.

47. Profit multiplier model involves developing concepts which may or may not be

profitable but are used for driving other products through synergy. The

management looks at the whole picture in such cases. For example, Walt Disney

used cartoon characters for developing theme parks, merchandise, and licensing

opportunities, which gave them huge profits.

48. Entrepreneurial model deals with offering specialized products or services to

clients which are not attractive to large competitors but have potential of fast

growth. There are so many cases today where big companies like Tata’s have

acquired smaller players with potential, e.g., IMG was acquired by Tata’s.

49. Under De Facto industry standard model free products may be offered at a

very low cost to increase the market share and for saturating the market to make

everybody talk about the product as a great brand and industry standard.

Subsequently, the users are offered high-end and high-margin products.

Microsoft indulged into this strategy.

50. Business models invariably involve the optimisation of profits by using

optimum product mix.

51. Economic growth must be inclusive to provide sustainable jobs and promote

equality.

52. Strategic management is defined as the process by which a firm manages the

formulation and implementation of its strategy.

53. The word strategy comes from the Greek word, strategos, meaning the

“General’s views”.

54. A Strategy combines explicit statements and implicit beliefs and

understandings in and around an organization about

Mission; • Vision; Clientele; Resources; • Present and Future

55. A strategy encompasses the pattern of organizational actions that have been

taken and those that are to be taken by an organization, in pursuing its objectives.

56. Strategy outlines the means by which a firm intends to create unique value for

customers and other important stakeholders.

57. Strategic Management involves those decisions and actions of the

management that determine the long-term performance of a business entity.

58. The various elements of strategic management include scanning of the

external and internal environment, formulation of long term strategic plans,

implementation of strategy and the evaluation and control process.

59. A plan is an arrangement, a pattern, a programme, or a scheme for a definite

purpose.

60. A plan is very concrete in nature and does not allow for deviation.

61. A plan provides a coherent framework from which to build and a sure

direction to follow, with intermittent milestones to pass, to reach an end goal.

62. A strategy is a blueprint, layout, design, or idea used to accomplish a specific

goal.

63. A strategy is very flexible and open for adaptation and change when needed.

64. Strategy is most useful when creativity, collaboration, and innovation are of

the utmost importance.

65. A strategy encourages openness and debate from every side of the equation.

66. A strategy embraces questions and out-of-the-box, effective answers.

67. A strategy allows for a natural flow of thought and continual momentum that

builds, till success is reached.

68. The strategy followed by a business entity can be equated with a master plan,

which contains details as to how the mission and business goals of the entity shall

be achieved.

69. The purpose of the strategy of the organization is maximizing the competitive

advantages and, at the same time, minimizing the competitive disadvantages.

70. A typical business entity normally considers three different types of strategies,

as under:

a) Corporate strategy

b) Business strategy

c) Functional strategy

71. Corporate strategy of a company covers the overall direction followed by the

company.

72. Corporate strategy would spell out the general attitude of the company

towards growing and managing its different business lines, products and services.

73. A corporate strategy may be classified under the three different categories of

stability, growth, and retrenchment.

74. Business strategy would normally be prepared at the level of the business unit

or at the level of product or service and it normally highlights the improvement in

the specific industry or market ranking of the business entity’s products or

services produced or delivered by that business unit.

75. A business strategy could be competitive or cooperatives.

76. Under a competitive strategy, a company might try to differentiate its services.

77. A cooperative strategy may form an alliance with other companies to extend

its reach to global markets and get a competitive advantage.

78. Functional strategy refers to the approach adopted by functional areas for

achieving the objectives of the business unit and the company by maximizing the

productivity of available resources.

79. Functional strategy involves the development and fostering a distinctive

capability to create a competitive advantage.

80. In practice, a business entity may use all the three types of strategies (

Corporate strategy; Business strategy and Functional strategy ) at the same time.

81. Strategic Management has the following four basic elements:

The context (Environmental Scanning)

Strategy Implementation

Strategy Formulation

Strategy Evaluation & Control

82. The Context (Environmental Scanning) refers to monitoring, evaluation and

dissemination of information received from the internal and external

environments. The information is provided to the key people in the organisation

with the overall objective of identifying both internal as well as external strategic

factors, which can impact the future of the organisation.

83. SWOT Analysis is one of the easiest ways of conducting environment scanning.

84. The acronym SWOT refers the Strengths, Weaknesses, Opportunities, and

Threats, applicable to a specific organisation.

85. Strengths and Weaknesses form part of the internal environment of an

organisation and could cover the organisation structure, the resources available to

an organisation and the overall organisational culture.

86. The core competencies of an organisation depend on its strengths.

87. The internal environment can usually be controlled by the top management in

the short run.

88. The Opportunities and Threats form part of external factors and are generally

outside the ambit of the top management’s short-term control. These factors

could be general, as well as specific factors. The general factors generally impact

the entire economy or an industry whereas the specific factors might impact a

specific industry or an organisation.

89. The internal and external environmental factors form the context within which

an organisation exists.

90. Strategy Formulation requires, on the basis of information gathered from

situation analysis, to set strategic direction through business mission and vision

statements, and establish strategic objectives to reach there, and generate,

evaluate and select corporate, business and functional strategies to pursue.

91. Creating vision is the essential act of leadership.

92. The vision must relate to the expectations of its customers, while being grand

enough and imaginative enough to fuel the employees’ spirit.

93. The vision gives the organization its energy.

94. The vision usually requires a “leap of faith” and an “act of courage”.

95. A vision is an optimistic, inspiring picture that brings with it the responsibility

to make it happen.

96. A vision is a dream of greatness!

97. Vision is a simple statement or understanding of what the firm will be in the

future.

98. A vision is forward looking and identifies the desired long-term status.

99. A vision statement should answer the basic question, “What do we want to

become?”

100. A clear vision provides the foundation for developing a comprehensive

mission statement.

101. Ideally, vision statement should be short, preferably one sentence.

102. The mission statement is usually depicted as the starting point in the

strategic planning process.

103. The mission statement spells out the underlying motivation for being in

business in the first place - the contribution to society that the firm aspires to

make.

104. A mission statement is called a statement of purpose, a statement of

philosophy, a statement of beliefs, a statement of business principles, or a

statement “defining our business,”.

105. A mission statement reveals what an organization wants to be and whom it

wants to serve.

106. Organizational mission statements should include ten components:

customers, products or services, markets, technology, concern for survival, growth

and profitability, philosophy, self-concept, concern for public image, and concern

for employees.

107. Successful strategies are dependent on effective implementation.

108. Strategy implementation is the fine art of detailing: what all is to be done,

when various tasks are to be performed, where are they to be performed, how

they are to be performed and who will perform.

109. Strategy implementation is the process of executing the strategy – of taking

the actions that put the strategy into effect and ensure that organizational

decisions are consistent with it.

110. While strategy formulation is the process of deciding what to do, strategy

implementation is the process of performing all the activities necessary to do

what has been formulated.

111. Strategy evaluation is a logical step to obtain feedback from strategy’s

performance and taking corrective actions, if needed, in the light of constant

external and internal changes. Strategy evaluation is needed because success

today does not guarantee success tomorrow.

112. Phases of Strategic Management – A business entity normally develops its

strategy in the following four phases –

Basic Budgetary Planning

Forecast-based Planning

Externally Oriented (Strategic) Planning

Strategic Management

113. The three most important benefits of strategic management are as under:

a) The management gets a clearer sense of strategic vision of the business

entity.

b) Management is able to clearly focus on strategically important issues,

faced by the entity.

c) The dynamic environment can be better understood by management.

114. strategic management is crucial for the success of an organisation in the

long-term and may mark the difference between a successful and an unsuccessful

organisation.

115. Management is the process of creating an environment which helps

individuals, who work in groups, to achieve business goals established by the

various stakeholders. T

116. The process of Management involves planning, organising, staffing, directing

and controlling.

117. The various management approaches and thoughts include the Classical

Basics of Management or Traditional School, the Neoclassical or Behavioural

School, the Quantitative School or Management Science, the System School, the

Contingency School and the Contemporary School.

JAIIB PPB

 JAIIB - PPB

Unit – 1 : Indian Financial System

1. NBFC are allowed to raise money from the public and lend monies through various instruments for ex leasing, hire purchase and bill discounting.

2. Primary dealers deal in government securities, primary as well as secondary markets.

3. FI are financial institutions which provide long term funds for industry and agriculture.

4. Co-operative banks are allowed to raise deposits and give advances from/to public.

5. Urban co-operative banks are controlled by State government and RBI.

6. Other co-operative banks are controlled by State Government and NABARD.

7. CRR is a percentage of demand and time liabilities of a bank which is deposits held by the bank.

8. SLR is a percentage of demand and time liabilities of a bank which is held in prescribed government securities by the bank.

9. Bonds and debentures are examples of corporate securities and can be used to raise debts.

10. Debts, equities and derivatives are examples of securities.

11. SEBI is the capital market regulator.

12. Merchant bankers aka Investment bankers are licensed by SEBI and they issue stocks, raise fund and manage them.

13. FII are authorized by SEBI to invest in Indian equity and debt market through stock exchanges.

14. Depositories held securities in demat form (not physical).

15. Mutual fund pools money from investors and invests in stocks, debt and other securities.

16. The three regulatory authorities are:

RBI - for banks,

SEBI - for capital markets and

IRDA - for insurance sectors

JAIIB - Legal : Last Minute Revision : Must Read

  JAIIB - Legal : Last Minute Revision : Must Read 

--------------------------------------------------------------

01. Relaxation in KYC norms is permitted if the depositor undertakes that the balance outstanding in his account will not be more than and credits in a financial year will not exceed. Rs 50,000; Rs 100,000

02. Minimum Maturity Period for Certificate of Deposit is : 7 days

03. Why KYC guidelines have been issued by RBI under section 35 A of the Banking Regulation Act: To prevent Money Laundering -

04. If payment of Rs 20000/- is made in cash in case of FDR what is the penalty: equal to the amount paid

05. In Senior Citizen Saving Scheme account,who can be joint account holder?:Spouse

06. TDS not deposited in time. What is the interest payable?: _Bank to pay the amount with interest © 1.5% per month simple.

07. What is the special feature of Basic banking Account? Account can be opened with nil or very small amount and there are no requirement of minimum balance.

08. Current balance is Rs.6000/-. A cheque of Rs.18,000/- is presented. Branch passed the cheque by allowing TOD. After few days, fixed deposit of the same party matured and TOD was cleared by crediting the proceeds to CA. Customer disputes the transaction.Whether bank is having right in doing so? : Normally no without specific request of the party. However, if bank has a specific clause in the account opening form to allow overdraft in such cases and customer has consented to such clause, then temporary overdraft can be allowed and recover the same from the account holder even if there is no specific request from the party.

09. TDS collected to be deposited with the Income Tax Deptt within: 7th day of succeeding month during which it is collected.

10. TDS at the rate of 10% is to be deducted at source in case of individuals and HUF„ if the rent payable in a financial year exceeds : Rs.1,80,000

11. You are maintaining 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?: Cheque may be paid, if otherwise in order.

12. Quarterly statement for TDS on salary should be submitted on form 24-Q within: 15 days of the close of the quarter

13. Pensioner account can be opened jointly with? Spouse as Either of Survivor or Former or Survivor.

14. Photograph is obtained at the time of opening the a/c. What is the purpose for the same?: for identification of the prospective customer

15. Amount that can not be paid in cash in respect of term deposit by the bank as per Income Tax rules: Rs 20,000 and above.

16. Interest rate on Saving Bank is fixed by : Banks themselves w.e.f. 25.10.11

17. A, having SB a/c with you, deposited Rs.25000. A public Prosecutor sent notice to bank informing that Mr A is involved in forgery and requested not to permit withdrawal in the a/c. In between one cheque of Rs.20000 has been presented for payment. What should be done by the bank?: Pay the cheque as Public Prosecutor is not authorized to freeze the a/c.

18. There is an SB a/c in the name of A & B .They have given power of Attorney to 'C' for operation in A/C, The cheque signed by the 'C' is presented in the bank after death of 'B' : cheque will not be passed

19. Encashment of FDR with interest - payment can be made in cash if it is less than Rs 20000

20. There is a credit balance in the saving account and there is a overdraft in the current account amounting to Rs 555. Both accounts are in the same name. Bank wants to adjust credit balance of saving bank account towards payment of overdraft. As per which right, bank can do this?: Right of Set Off.

21. Maximum amount of deposit under Tax Saver fixed deposit is: Rs 150,000

22. The minimum & maximum period of certificate of deposit is : 7 days, 12 months

23. Call money deposit is part of the sector : Organised sector

24. The terms used for hiding money to avoid tax is :Money laundering

25. Which of the following forms will be used for allowing exemption to a depositor aged 61 years : Form 15H

26. Missing person treated as having expired if missing for: 7 years

27. Super senior citizen after: 80 years of age

28. DD of Rs.50000/- in cash : not allowed

29. For the purpose of KYC rules any addition & modification on which recommendation: Financial Action Task Force

30. In case of Minor what is wrong? Minor can make himself liable for his actions.In case of a Deposits account customer wants the Nomination in his account. What is mentioned on Pass book

31. In case Fixed Deposits account the rate of interest fixed by whom: Board of Directors of respective bank.

32. In an account Mr. X Gives irrevocable power of attorney to Y for 1 yr. After 4 Month, X withdraw the irrevocable power of attorney. What is action of the Bank? Bank will rely the revocable application of the Hence the cheque signed by Y returned.

33. In case of Deposit Insurance whether it mandatory or not: It is Mandatory for all banks.

34. in which type of account where TDS not deduct in fixed Deposits Account: NRE and FCNR(B) only.

35. BC work as : Bank’s Agent

36. Cash Transaction Report ( CTR) should be submitted to FIU within how much period: 15 days of the close of the month.

37. Which of these rates are periodically reviewed by RBI?: Repo rate, Bank rate, but not Savings Bank Rate.

38. Interest rate on Savings accounts: Not regulated by RBI

39. As per RBI guidelines, Demand draft of Rs 50,000 and above should be issued against : by debit to account but not against cash

40. If pan no not submitted rate of TDS will be: 20%

41. Account is treated as inoperative if there is no operation for : 24 months

42. If a customer makes nomination, the bank is required to register in its books the nomination, and should give acknowledgement to the depositor in writing. The bank should also indicate the fact of nomination on the face of passbook/deposit receipt with the legend (a) Nomination Registered (b) Nomination marked (c) Nomination done (d) Nomination acknowledged: Nomination Registered

43. Which of the following facilities are allowed to visually impaired persons who open account with bank – issue of cheque book, ATM card, internet banking: All of these

44. What is the main motive of financial inclusion – (a) to give loans to poor persons (b) to issue credit card (c) to provide banking services to distressed persons at affordable cost: Ans is C

45. Banks are required to deduct tax at source from interest payable to an individual if the interest credited or to be credited in a financial year is more than Rs 10,000. This is as per provisions of (a) Income Tax Act (b) Goods and Service Tax Act (c) Service Tax Act (d) RBI Act: Income Tax Act

46. Tax is not deducted at source in respect of which of the following income – (a) Interest on Bank deposits (b) Rent on land and building (c) Brokerage (d) Dividend paid by listed company: Dividend paid by listed company (However Dividend u/s 2(22)(e) is taxable for shareholder and thus TDS rate on such dividend is 10%)

47. Which of the following can be done by a minor?: A minor may draw, indorse, deliver and negotiate a promissory note, bill of exchange or cheque so as to bind all parties except himself.

48. What is the responsibility of an introducer in an account opened by a person with a bank – (a) he is legally liable (b) he is morally liable (c) he is bound to trace the account holder: He is morally liable.

49. Direct Tax Code will replace which of the following – Income Tax Act, Corporate Tax Act: Income Tax Act.

50. As per KYC Guidelines, Records of transactions to be maintained for at least ten years from the dateof transaction, instead of _________from the date of cessation of transactions, and records pertaining to identification of the customer and his address to be preserved for at least ten years after the business relationship is ended: ten years

51. What type of activity can be performed by Business Correspondent - (a) processing and submission of applications to banks; (b) disbursal of small value credit, (c) recovery of principal / collection of interest (iv) collection of small value deposits: All of these

52. E TDS - 26Q (tax deduction other salaries) to be filed for the month of September, before: 15th October (Statement of TDS to be submitted within 15 days from close of quarter)

53. A Minor has extended Guarantee to a loan. It can be ratified by whom? It cannot be ratified by any one.

54. In Limited Liability Partnership account, who are not eligible for becoming partners: a) HUF b) Minor c) body corporate?: Ans: a & b

55. Insurance of deposit is done by DICGC up to: Rs 1 lac per depositor per bank.

56. What is the periodicity of review of risk classification of customers?: Every six months

57. Which is not a proof of Identity?: Ration card.

58. A customer who does not complete all KYC norms, what type of account is opened for him? No Frill account in which cannot be more than Rs.50000 and credits in the Financial Year cannot be more than Rs.100000.

59. There were three cash withdrawals of Rs 5.80 lac ,Rs 4.90 lac & 0.25 lacs from an account in a month. Which of these transactions is/are will be reported to Financial Intelligence Unit as part of CTR? Cash withdrawals of Rs 5.8 lac and Rs 4.9 lac.

60. Under Prevention of Money Laundering Act, banks are required to preserve records relating to opening the account for how much period?: 10 years from date of closure of account.

61. As per KYC Norms, banks are required to update record of customer regarding proof of address, and identity etc. of medium risk customers within how many yrs?: 2 year

62. Which of the following is not the key element of KYC policy a) Customer Acceptance Policy; b) Customer Identification Procedures; c) Monitoring of Transactions; d) Risk Management e) Customer Awareness Policy: Ans is E i.e. Customer Awareness Policy.

63. What is the distance criteria for office of Business Correspondent?: The distance between the place of business of a retail outlet/sub-agent of BC and the base branch should ordinarily not exceed 30 kms in rural, semi-urban and urban areas and 5 kms in metropolitan centers.

64. On whose recommendations, KYC norms came into force? (a) Goiporia Committee (b) Ghosh Committee (c) FATF: Ans is FATF

65. Under KYC Norms, Documents relating to opening the account like proof of address and identity and photograph should be taken again at what interval? (a) once in 5 years for low risk customer (b) once in 2 years for medium risk customers (c) once in 1 year for high risk customers (d) Both (a) and (b): Ans is (d)

66. Record of cash receipt and payment under KYC to be maintained if cash receipt or payment in a single day from one account is more than Rs 10 lakh.

67. Banks should have the responsibility of currency management entrusted to a nodal official of the rank not less than that of a General Manager and will be accountable for the obligations cast upon currency chests by the Reserve Bank.

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

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

Mortgage - 6 Questions

FEMA Act - 4 Questions

Sarfaesi - 5 questions

RTI - 3 questions

Transfer of property act - 4 questions

Money laundering - 3 questions

DRT - 3 questions

Enforcement of security interest - 2 questions

Income Tax - 3 questions

IT act - 3 questions

Pledge - 3 questions

Consumer protection - 2 questions

Deferred payment - 4 questions

Bank guarantee - 4 questions

Memorandum of association - 3 questions

Articles of association - 3 questions

Ultra vires transaction - 1 question

Banker book evidence - 2 questions

RBI/BR Act - 3 questions

Bill of Exchange - 2 questions

Minor admitted to benefit of partnership - 2 questions

Law of limitations - 2 2 marks questions

Indemnity - 2 questions

Lok Adalat - 2-3 questions

Presiding officer - 2 questions

Letter of credit - 3 questions

Bank guarantee - 4 questions

Partnership - 4 questions

Audit reports - 3 questions

Banking ombudsman - 2 questions

Appointment of Director/additional director - 2 questions

Definition of IT Act

DRT / ombudsman/ consumer appointment

Case laws relating to collection of paying and collecting bank

Minimum qualifications to be a presiding officer of DRT

Question on Forged Cheque

NI ACT 131

Minimum and maximum number of directors in a Public Ltd Company

Which LCs are Anticipatory LC

One question related endorsement

Penalty under fema act. Fine arrest or both

Min and max fine for delay in providing information

Max duration to provide information

Conditions for being a DRAT chairman

Registration Authority and few more questions on Reconstruction Company

Primary liability to pay in LC

Actionable claim??

One resolution for how many directors

Banking use excess from reseres and surplus needs permission within??

Balance sheet should be signed by??

Fraud cash withdrawal -ombd can deal or not?

Mortgage is defined in?

Charge on insurance is defined in?

Anyone require 15000 dollar for education purpose this is capital trans , cur trans?? acrd to fema

Relation in deposit of articles

Liability of gaurantor?

Equitable mortgage

Rights of seller

Right of indemnity holder when sued

Chairman of NAT

Min amount to apply in DRT

Min qualification to be presiding officer

Question related stale cheque. Can be paid on request of payee or not

Alteration authenticated by ac holders wife. can be paid or not

Income tax notice to assessee under which sec of it act

Which income not defined under income in it act. Pension, salary, capital gain, income from house rent

Who is chairman of national consumer commission

DRT applicable to-bank comp SBI rrb or all

Supply bill is related to?

Charge on laon against FD receipt.the customer in this case is

BRA 1949 mainly deals with

Max period of limitation in case of bill of exchange and bond without due date

Bill supported by document is called?

Bill payable after certain period called?

Financial statements must by signed and authorised by whom?

Assstment year for corporate entities

Presiding officer holds office till

Information can be sought by whom under RTI act

Which is considered good as security? -FDR receipt Debentures shares...

Object clause of MOA

Articles of association related

Partner become insolvent bank should??

Partnership firm may be dissolved by

Director of bank can do his personal work along with his post ? allowed or not

In case of conversion.. protection will be given to

Sec 131 NI act

Which type of comp cant be raised with ombudsman

Peculinary amount in case of DRTMax period of registration of charge with or without fine

Vice chairman of board on fin supervision is elected by?

Minor to decide whether to be a partner within ???

Consequences of unreg partnership firm

All partner can check book of the firm

Liability in indemnity?

Arbitration is applicable in ??

Decision passed by ombudsman is called

Minor can be a member in Pvt Ltd public Ltd company?

Questions on limitation act ..it's importance to banks

Questions on charge

Role of opening bank in LC

Regarding laon of limited company who will sign laon paper

Regarding loans to partnership firm

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

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

The term Currency defined under FEMA does not include ...... (0.50 mark)

a. Letter of credit

b. Travelers cheque

c. Promissory Notes

d. Bonds and debentures

Ans - d

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

Master A has been admitted to the benefit of partnership firm on 02.01.2017. Master A become Major on 02.05.2017 and he gave a public notice on 05.08.2017 about his interest to continue as a partner. Mr. A is personally liable to third parties for all the act of the firm w.e.f ...... (2 mark)

a. 02.05.2017 ( date of becoming Major)

b. 05.08.2017 (date of public notice)

c. 02.01.2017 (date of admission)

d. 05.02.2017 (date of completion of six months)

Ans - b

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

In respect of third party information, which one of the following statement is correct in the context of Right of Information Act? ( 1 Mark)

a. Chief Public Information officer can disclose the information in the normal course

b. Chief Public Information officer is not allowed to disclose the information

c. Chief Public Information officer shall give a notice to the third party about the the intention to disclose

d. The third party has no recourse against the decision of the Chief Public Information officer to disclose the information

Ans - c

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

In which of the following instances a banker may refuse to honor the customer's cheques?

(i) Where a post dated cheque is presented for payment prior to the date it bears

(ii) Where after debiting the cheque the balance will fall below the minimum balance required

(iii) Where the banker receives notice of customer death 

(iv) Where signature on the cheque differ from the specimen signature 

a. (i) and (ii) Only

b. (i) and (iii) Only

c. (ii),(iii) and (vi)Only

d. (i), (iii) and (iv)Only

Ans - d

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

In civil suit to which bank is not a party, one of the parties has produced the certified copy of the books of account. One party to thes uit want to call the bank officer as a witness, to prove the contents of copy. Can it be done in the normal Course?

a. Yes, as if it is right of the party to get it re-affirmed in evidence

b. No, As the certified copy as prima facie document that is admissible as evidence

c. No, Unless the bank voluntary to do so

d. Yes, if the party obtain consent of the bank

Ans - b

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

Which one of the following statements is correct in respect of the transfer of an actionable claim? (1 mark)

a. It can be done for valid consideration only by the excution of an instrument in writting signed by the transferor

b. It can be done with or without consideration in case of insurance polices

c. It can be done with or without consideration only by the execution of an instrument in writting signed by the transferer

d. It can be done with or without consideration only in case f immovable properties

Ans - c

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

What is the pecuniary jurisdiction (maximum value of the goods or services and the compension claimed) of the district Forum under Consumer Protection Act, 1986? (0.50 marks)

a. Rs. 10 lac

b. Rs. 20 lac

c. Rs. 05 lac

d. Rs. 08 lac

Ans - b

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

When a bill is transferred for consideration to any person so as to entitle the person to claim the amount represented by the bill, such a transfer is called ......

a. Notification

b. Negotiation

c. Endorsement

d. followed by delivery

Ans - b

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

Which of the following statement is appropriate of a consumer Redressal Mechanism? (1 Mark)

a. The limitation period for filing complaint before a consumer Forum is three year from the date of cause of action

b. The limitation period for filing a complaint before a Consumer Forum is Two years from the date of action

c. If an interim order passed by the a Consumer Forum is not complied with, the property of the person who is not complying can be attached but attached property cannot sold

d. All offences under the consumer Disputes Redressal Act are not tried on summary basis

Ans - a

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

Places where the mortgage by Deposit of title deeds can be created are generally notified by the ...... (1mark)

a. Registrar of companies

b. State Government

c. Registrar of Assurances

d. Competent Legal Authority

Ans - b

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

Absoute possession of proprty is not given to the mortagage in case of ......

(i) Simple Mortagage

(ii) Mortagage by Deposit of title Deeds

(iii) English Mortgage

a. (i) and (ii)Only

b. (ii) and (iii)Only

c. (i) and (iii)Only

d. (i), (ii) and (iii)Only

Ans - a

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

A banking company, not being a scheduled bank, is also required to furnish a return to Reserve Bank of India relating to cash reserve. This based on the provision of Sec 18(1) of the ......

a. Indian companies Act, 1956

b. Banking Regulation Act,1949

c. Reserve Bank of India Act, 1934

d. Banking companies ( Aquisition & transfer of under takings) Act

Ans - b

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

For which of the following reasons, pledge is advantageous over Hypothecation? (1 Mark)

(i) The good are in the custody of the pledgee and therefore it can be easily enforced

(ii) The good are in the custody of the pledger and therefore it can be easily enforced

(iii) The pledger cannot manupulate the goods

(iv) If the goods are lost due to flood or fire, insurance cover can be availed

a. (i) and (ii) Only

b. (i),(ii) and (iii) Only

c. (i),(ii) and (vi)Only

d. (i), (iii) and (iv)Only

Ans - a

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

The right to receive copies of annual accounts of the company by the member is called ......

a. Statutory right

b. Documentary right

c. Proprietary right

d. Absolute right

Ans - a

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

In civil suit to which bank is not a party, one of the parties has produced the certified copy of the books of account. One party to thes uit want to call the bank officer as a witness, to prove the contents of copy. Can it be done in the normal Course?

a. Yes, as if it is right of the party to get it re-affirmed in evidence

b. No, As the certified copy as prima facie document that is admissible as evidence

c. No, Unless the bank voluntary to do so

d. Yes, if the party obtain consent of the bank

Ans - b

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

The practical procedure followed for mortgage of lease hold right include ...... (2 marks)

a. Xerox copy of the lease agreement can constitute the title deeds

b. The unexpired lease period may be shorter than the period of the banks advace 

c. A triparte agreement may be entered into amoung the lender bank, the lessor and the lessee(borrower)

d. The consent of lessor would not be necessary, if origional lease deed is available

Ans - c

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

The rate at Which Reserve Bank of India is prepared to buy or rediscount bills of exchange other commercial paper eligible for purchase under the RBI Act is known as ......

a. Yield to Maturity

b. Prime Lendiing Rate (PLR)

c. Base Rate

d. Bank Rate

Ans - d

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

The right of a transferee of a partner's interest in a firm include ...... ( 1 mark)

(i) To receive the share of profit of the transferring partner

(ii) To interfere in the conduct of the business

(iii) Entitled to a share in the Assets of the firm on dissolution of firm or cessation of the partner

(iv) Right to verify the annual accounts of the partnership firm

a. (i) and (iv) Only

b. (i) and (ii) Only

c. (ii) and (iii) Only

d. (i) and (iii) Only

Ans - b

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

Which of the following statements correct regarding the Jurisdiction and power of Debt Recovery Tribunal? (1 mark)

(i) A decree passed by the civil court can be executed by the tribunal

(ii) A person heading of the office of the Appellate Tribunal can transfer any case from one Tribunal to other Tribunal within his Jurisdiction

(iii) For the matter for which Tribunals are empowered, the civil Courts have no jurisdiction

(iv) There is remedy available against the order passed by the Appellate Tribunal

a. (i) and (ii) only

b. (i), (iii) and (iv) only

c. (ii) and (iii) only

d. (i), (ii)and(iii) only

Ans - a

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

Which of the following statements are appropriate? (2 mark)

(i) Capital clause of the MOA mentions about the amount of capital a company will be authorized to raise

(ii) Main objective clause and other objective clause of MOA are not interchangeable

(iii) Article of Association must be filed by unlimited companies also

(iv) The Article of Association cannot be altered by a special resolution with approval from the NCLT

a. (i) and (ii) only

b. (ii) and (iii) only

c. (i), (ii) and (iii) only

d. (i), (ii),(iii) and (iv) only

Ans - d

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

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

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

Under which section of income tax donations come? - 80G of the Income Tax Act

Min and max no of member in private companies - 2 & 200

No. of members in public limited co (Min & Max) - 7 & unlimited

Banking ombudsman applicable - in whole india

Indemnity which type of liability? - Contingent.

Who can rectify the clerical or arithmetical errors in order passed by DRT? - Presiding officer

Which income doesn't come under service tax? - Interest income

Within how many days can a consumer file complaint if he is not satisfied with the service? - 30 Days

Which is the negotiating bank in case of LC? - Exportrs country bank

Relationship between bank n customer in case of pledge - pawnor-pawnee'

Debt recovery tribunal established by - Government of India under an Act of Parliament (Act 51 of 1993)

How many types of LC ? - 8

Jurisdiction of appellate tribunal - The Central Government is also empowered to decide and specify the areas within which the tribunal may exercise jurisdiction for entertaining and deciding the applications filed before it.

DRT applicable - Above 10 Lakhs

DRT is controlled by - Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI Act), 1993

RTI is not applicable to - J&K

UCPDC 600 is in respect of - Letters of credit

Pay as you earn is a...... tax - is a withholding tax on income payments to employees

20% profits should maintain with rbi - NBFC

NI act application - Whole India

Cersai time limit - within 30 days of creation of mortgage

Bills payable on demand are - paid when the payee asks for it.

Term of every member in national commission - 5 years or up to the age of seventy years, which ever is earlier

A securitization company carries out the function of - Acquisition of financial asset from the originator

Limitation period of for takng immovable property under sarfaesi? - 12 Years

Amount of TDS should be submitted before how many days? - 7th of the next month

Number of directors of private company? - 2 to 15 (Min & Max)

Casual vacancies of directors can be filled by? - the Board of Directors at a meeting of the Board

Collecting bank will get safety under NI act for what - Forged sign of endroser

Which is not consider as NI - Share

Tax dedcuted from salary has to be payed as on - Monthly basis

Limitation perod for foreclosure is - 30 Years

Llimitation perod for possession of immovable property is - 12 years

Banking regulation act 1949 - Regulates banking

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

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

1. Limitations period of foreclosure - 30 Years

2. Section 35 of RBI act - Initial assets and liabilities

3. Section 35 of Banking Regulation Act, 1949 - Inspection

4. Minor Partner liability in firm - cannot be held personally liable

5. Payee bank protection in case of forged Instrument - Sections 10, 85 and 128 of NI Act

6. Elder Male member called as in HUF - Karta

7. Non negotiation crossing Obligation to payee bank

8. Limitation period in case of Default of loan in EM

9. Bank Negotiation stamp of cheque, presented to other bank

10. 5-6 questions frm DRT/DRAT

11. Bank Guarantee

12. Questions from NI Act

13. Limitation Act

14. Charges, Mortgage

15. Partnership Act

16. FEMA

17. Consumer Protection Act

18. Banking Ombudsman

19. Majority of the paper from Chapter A

20. Questions on minor admitted benefits

21. LC types i.e red clause and green clause 

22. Public Ltd and Pvt company differs 

23. No of members in pvt ltd

24. Case studies on Bank Guarantee

25. LC case study 

26. Winding up decisions

27. Loan documents signed by in case of loan to HUF

28. Aggrieved by DRT decision, complaint to?

29. Aggrieved by Lok Adalath decision, complaint to?

30. Aggrieved by Banking ombudsman, complain to deputy governor within how many days

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

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

1. Exact meaning/difference between pledge and bailment

2. Memorandum of association and articles

3. Voting rights of shareholders max limit

4. Max directors in public, private companies

5. Difference b/w indemnity, guarantee

6. Clerical error in DRT, resolved by?

7. Equitable mortgage place of registration of charge

8. In continuity guarantee, if guarantor dies?

9. When agreement to sell becomes sale?

10. Section 131 of NI act

11. Register of members of a company should be kept with?

12. Interest rate on excess of CRR?

13. Central, state, district councils

14. Statutory rights on company member ship 2marks +1mark

15. Upcountry cheque 2marks

16. Consumer protection act pecuniary jurisdiction levels 

17. Consumer protection act calim limit

18. Bill of exchange limitation period 

19. Claytons rule example cash credit or demand loan or bill of exchange 

20. Financial gaurante definition 

21. Pledge and gaurante differences 

22. Equitable mortgage 2 marks question

23. Mortgage by conditional sale 

24. DRT Borrower may apply 45days 

25. DRT Borrower has to deposit 50% and tribunal has power to reduce 25%

26. Agreement to sell risk 

27. Consideration 1qurstion 

28. Official gazette published in electronic for called 

29. Money laundering act 1 question 

30. Right to information act 1question 

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

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

1. Actionable claims 

2. FEMA current account transaction

3. FEMA another 2 question  

4. Memorandum of association object clause are classified in to sub clauses

5. MOA clauses 

6. Min and Max numbers in private public company 

7. Partnership disslove on partner retire 

8. Legal position of minor attains majority 

9. Limited liability partnership 1question 

10. Unpaid seller 1queation 

11. Sale vs aggrement to sell 1queation 

12. Consideration one question 

13. Bailment and pledge question 

14. Contract 1question

15. Place of source example question in tax 

16. Organization of Lok adalats 

17. If any clerical or arithmetical errors in recovery certificate who will change 

18. Mardia case half mark 

19. DRT 3 questions 

20. DRAT 1queation

21. CRR on RBI int will provide or not

22. NI act collection banker case study

23. NI act paying bank case study 

24. HUF half mark question

25. Bill finance question - Holder 

26. Hypothecation 1 queation

27. General lien question

28. Charges 2 marks questions came like Gold coins is better than gold jewellery

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

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

Limitation act

Different types of mortgages

Company act

Partnership

Paying banker protection

collecting bankers duties

SARFAESI Act

Information technology

Usufructary Mortgage

Absolute Possession in which mortgage

Supply Bills

Not a consequence if charge not created

Notice by AO under which section

Section for Registration of Charge

Conversion on Cheque.. Who is defaulted in such case.

Paying n Collecting Bank Ques

The Consumer Protection Act,1986 applies to ...... All goods and services/ Goods for resale/ Goods for commercial purposes

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

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

1. Members of public and private company - Public - Min-7, Max-No Restriction. Private - Min-2, Max-200

2. No. Of directors in public and private company - Public - 3 to 15, Private - 2 to 15

3. Interest payable by RBI on CRR - 0 %

4. Pledge hypothetican

5. What is equitabe mortgage

6. NI Act

7. RTI

8. Questions based on limitation period

9. Diff b/w partenership and company

10. Questions on mortgage and cheque

11. Heads of object of memorandum of association

12. Related equitable mortgage

13. BR act

14. Partnership accounts

15. Person appeal to drt after receiving reply from sc with in period of

16. payment and settlement system regulated by

17. About mortgage types 4 questions

18. FEMA deals with transactions of

19. Bailment & pleadge

20. Equitable morgatge

21. Lc

22. Deferred payment guarantee

23. Limitation

24. In how many days TDS file to gov

25. For cancel of lease or rent how many month notice?

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

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

1. Clatons rule

2. Minimum directors-3&2

3 Around 8 qtns from mortgage. like english, equitable, act for mortgage etc.

4. 4 qtns from MOA & AOA of company

5. Doctine of constructive

6. Diff. partnership and company

7. Indemnity-loss of fdr

8. Hypothication

9. Ddiff. pledge and lien

10. Consumer complaint act-complainant

11. Credit card award-1 lakh

12. Common seal

13. Green letter of credit

14. Negotiating bank

15. Surity is -secondary

16. Deffered guaranty

17. DRAT head post

18. Chq alteration not visible to naked eyes bank not liable

19. SARFAESI Act appeal to drt in how many days 45

20. LC credit related question credit allow something like that ans green lc 

21. BO related complain how many days to dispose by BO.

22. RTI how many days to required by the PIO to settle the information.

23. Not registerd partnership firm related question can sue or not.

24. Min No of director in public and private

25. Arbitrage

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

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

1. Section 131

2. Actionable claim

3. Which one is NI

4. Equitable mortgage 

5. Mortgage deed is necessary foe which mortgage 

6. Which LC is called anticipatory credit

7. Members and directors of pvt and public company (2questions)

8. Which is not a company classified under liability category 

9. With what memo a cheque should be returned if collected by one bank and presented by other bank

10. When a partnership will dissolve

11. Demand notice period under SARFAESI-ACT 

12. DRT is applicable for : SBI, nationalised, RRB, all

13. DRT

14. Bank Guarantees

15. Many questions on mortgages

16. Income tax act

17. Preference shares

18. LC

19. Bill of exchange

20. Agreement

21. Hypothecation

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

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

1. As per section 26 of the Negotiable Instruments Act, a Minor can draw, endorse, accept a negotiable instrument but he can not : bind himself

2. 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

3. 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.

4. 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.

5. 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.

6. 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

7. 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.

8. The Limitation period for filing case in case of dishonour of cheque due to insufficient funds is: 1 month from the date of cause of action.

9. Objectives for which a company has been formed are given in: Memorandum of Association

10. Full form of 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 tomaintainminimumCapital AdequacyRatio 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. In the case ofWrongful dishonour of cheque, towhomthe bank is liable?:Drawer

20. If date on a cheque is prior to the date of its presentation, it is called: Ante Dated cheque

21. What isminor's liability in HUF Account:Minor is not liable

22. When does the right of nominee starts in respect of a deposit account?: After death of all depositors

23. For injectingmoney in themarket which type of transaction is undertaken?: (a) Repo (b) ReverseRepo

24. RBI controlsmoney supply through: change in CRR

25. Loan given to a director can be waived: after ermission of RBI.

26. Under the Ombudsmen scheme, the Bank has to reply to the objection of the complainant within: one month

27. 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.

28. Which type of preferential shares are treated as part of Tier I capital of the Bank?: Perpetual Non Cumulative Preference Shares.

29. 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 /Whole sale Banking, (c)Retail Banking, (d)Other Banking Business. The geographical segments are 'domestic' and 'international'.

30. 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.

31. 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.

32. Whether a Private Limited company can be a partner with Public Limited company to forma Partnership?Yes

33. 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.

34. 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.

35. 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.

36. Penalty for delay is per day if information is not furnished within prescribed time under Right to Information Act: Rs. 250 per day with maximum being Rs. 25,000/

37. 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).

38. 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.

39. Who cannot become a partner in a firm as per Supreme court judgment HUF

40. 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

41. Nomination -Minor can be a nominee.

42. Inoperative accounts: 2 Years&above not operated.

43. RTI Act - party seeking information need not disclose the reasons for which the information sought for.

44. Counterfeit notes returned after police verification, the same has to be preserved for 3 years subject to half yearly verification.

45. Validity period of cheque reduced to 3months from1.4.12 as per : RBI Guidelines under sec 35A of B R Act

46. 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.

47. The consequence of non registration of Partnership - firm cannot sue others for its dues.

48. 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.

49. 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.

50. 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

51. A Cheque partly written in English &partly in regional language is presented for-payment What 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.

52. 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.

53. You are maintaining 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?: Cheque may be paid, if otherwise in order.

54. As per Consumer Protection Act, the period for filing appeal to State Commission against decision of the District Forum is: maximum 30 days

55. Who can not be full fledged partner:Minor

56. Can Karta of HUF appoint Agent or delegate the powers to other co-parcener: Yes, he can do so.

57. Money deposited after receiving order may be attached in the case of: attachment order

58. Original & duplicate draft presented simultaneously for payment: Duplicate should be paid & original should be returned.

59. 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.

60. Reasons for avoiding advance to Un-Registered Partnership Firm: Firm can not sue against Any one for recovery of its debts but anyone can sue against the firm.

61. What is the effect of 'Not Negotiable Crossing'?: Transferee does not get better title than the transferor.

62. Payment of cheque can be stopped by: only Drawer of the cheque

63. Account payee crossing defined in:-Not defined anywhere

64. What is the current rate of interest paid on CRR?:NIL

65. How can be the transferability of Bill of exchange can be restricted? Bymaking restrictive endorsement

66. 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.

67. Within priority sector,what is the allocation to weaker section?: 25%

68. Maximum time with in which reply must be given under Right to information act? 30 days

69. What is the status of Nominee? Trustee of Legal heirs

70. Safe deposit vault is governed by provisions of: Transfer of Property act

71. 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.

72. Purpose of star series notes: To replace defectively printed notes

73. Customer-bank relationship in locker account: Lessee-Lessor

74. Uptowhat amount District forumcan be approached under Consumer ProtectionAct?: Rs.20 Lacs

75. Appeal against the award of Ombudsman can be made by the bank within: 30 days of receiving the acceptance from the complainant.

76. Cheque issued by director of a company and presented after his death will be: Passed if in order

77. What would be the action of central bank in recession?: create liquidity by decreasing CRR and lower the repo rate.

78. 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

79. 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

80. Nomination facility is not available in the case of : Trust A/c.

81. customer service Committee meeting held on :Monthly basis

82. 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

83. For wrong ful dishonour of the cheque the bank is liable to: the drawer of the cheque

84. 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

85. Which crossing takes away the feature of assumption of defective free title available to the transferee : Not negotiable crossing

86. Who is appointed to tackle public complaints against the public authorities : Ombudsman

87. 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).

88. 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

89. As per recent RBI/Govt. guidelines, pensioners can open account jointly with: spouse, to be operated as either or survivor or former or survivor.

90. While paying a bearer cheque, signatures are obtained on the back side of the cheque. Why ? : As evidence of payment

91. Whether Minor can nominate ? no. On his behalf nomination will be done by a person legally competent to act on his behalf.

92. Cheque is dated before date of its presentation is called: Antedated cheque

93. An endorsement inwhich endorser excludes his liability is called : sans recourse

94. When a company is financed against the security of hypothecation ormortgage of its movable property, the company is required to file particulars of charge with: Registrar of Companies

95. 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).

96. 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

97. On the face of a cheque, the name of a bank is written without two parallel lines. This will amount to : special crossing

98. A/c payee crossing is defined in : it is not defined in any Act. It is as per practice

99. Nomination facility for deposit accounts is available under: 45ZA&45 ZB of the BR act

100. 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

101. Asolicitor has account in his name and in the name of his client.Garnishee order is received in the name of the solicitor.Whether the samewill be applicable in the name of client also: No because two accounts are not in the same right and same capacity.

102. Which of the following is not amaterial alteration? Changing bearer to order

103. A bill issued without consideration is called: Accomodation Bill

104. There is a joint account in the name ofA&B.Acheque is drawn byAbut the alteration in the amount is authenticated by B.Whether bank can pay the cheque: Yes provided the operation is either or survivor.

105. 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

106. 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

107. The rate at which RBI rediscounts the usance bills of banks is called: Bank Rate

108. 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. Bank can charge collection charges of not more than for_outstation cheques of Rs.10000 to Rs1 lac in saving bank: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 cheq

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 lawand certain instruments used as negotiable instruments as per practice.Which of the following is not a negotiable instrument as perNI Act: Dividend warrant

123. On repayment of_debt of a company, satisfaction of charge shbuld be filedwith ROCwithin: 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. A minor approaches for a loan. Which type of loan can be given to him: loan can not be sanctioned other than for necessities.

129. Which of the following does not match in banker/customer relation : Locker facility - Bailee/Bailor

130. Committee on Procedures and Performance Audit of Public Services (CPPAPS) was headed by: S.S. Tarapore

131. Customer service code has been mentioned in : Banking Codes and Standards Board of India.

132. Cheque received in clearing signed by whom will not be passed out of the following: signed by a person who has ' been declared insolvent.

133. Whether a customer can approach Ombudsman without first approaching the Bank : Approaching the bank first is a pre-condition.

134. 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.

135. If a guardian is appointed by court, minor will become major at the age of: 21 years

136. A Cheque with forged signatures is presented for payment and is paid. Bank will be liable to:Customer (Drawer of the cheque)

137. Protection is available to the collecting banker in case of : Crossed cheques

138. Which is not a General Crossing: Name of a bank written between two parallel lines

139. If time is not mentioned on a Bill of Exchange, it will be payable: on demand

140. 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.

141. Garnishee order is applicable for: credit balance in OD and not for cheque sent for collection.

142. Bank Guarantees are issued as per provisions of : Indian Contract Act

143. 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.

144. A bank cannot acquire either as owner or as pledgee shares in a company more than:- As per Section 19 of the Banking Regulation Act 1949, no bank can hold more than 30% of the paid up capital of a company or 30% of its own paid up capital and reserves, whichever is less, whether it is a pledgee, absolute owner or

145. For formation of a company, Registrar of Companies will issue : certificate of incorporation

146. Co is in liquidation, funds are at the disposal of : Liquidator

147. Guardian appointed by will of the father is called: testamentary guardian

148. Which of the following documents does not constitute document of title to goods:Airway bill

149. DD can be revalidated within: any time (practice may differ In different banks)

150. Which crossing is a Special Crossing : Name of Bank is written in the cheque with or without parallel lines

151. Supervision of banks is done by RBI under which act: RBI Act / BR Act / Jilani Committee Report / NI Act: Banking RegulationAct

152. A minor is aged 15 years, who is illiterate. Which type of self operated a/c can be opened -SB/ RD /FD none

153. Which of the following can open SB a/c? State Electricity Board/ Indian Bank Association/Municipal corporation: Indian Bank Association.

154. In a Flying club, the Secretary&Treasurer are authorized to sign.ACheque is presented for payment across the counter. In between it has been informed that Secretary has died,what youwill do? :Will be paid, if otherwise inorder

155. 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

156. As per Prevention of Money laundering Act, preservation of records relating to closed accounts upto: 5 yr from date of closure of account.

157. Banks can provide information about the customer to another Bank: General in nature, without any responsibility

158. 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

159. Other than a Bill of exchange or promissory note, the document which was executed abroad is required to be stamped on its arrival in India within: 3 months of its arrival

160. Administrator is appointed in case of: to realize assets and pay off liabilities of a person who has died without writing a will.

161. Under Ombudsman scheme, which type of case not entertained?: advocate representing the customer

162. 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

163. 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.

164. Whether Pvt Ltd. Co. can be partnerwith Partnership Firm: Yes

165. Counterfeit note received at the counterwhat to be done?: Impound the currency note.

166. No noting on currency note, directions issued byRBI under section 35Aof BR Act.

167. Cross cheque can be paid at counter if presented by other bank.

168. Payments of a forged draft.Who will lodge FIR paying or collecting bank: Paying Bank.

169. Borrowing powers of board of directors are contained in: Articles of Association

170. 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.

171. If a complainant is not satisfied with the award or his complaint is rejected by the Banking ombudsmen, he can prefer an appeal to DeputyGovernor, RBIwithin: 30 days of the of the date of receipt of communication regarding award or rejection of the complaint.

172. In case ofwrongful dishonour of cheque, bank is liable to: account holder only

173. Who can seek information under.Right to InformationAct:Any citizen of India can ask for information

174. The Garnishee Order is applicable on the account of a customer when the relationship between banker customer is: Debtor & Creditor.

175. A private limited company with Registered office at Bangalore has raised loan from a branch located at Mumbai. For creating equitable mortgage, title deeds can be deposited at: Mumbai, Kolkatta, Chennal or any other notified place.

176. A cheque is presented for payment in which amount in figures is mentioned as Rs 10,000 where as the amount inwords is mentioned 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.

177. 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

178. 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

179. 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

180. 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

181. 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.

182. Who is primarily liable on Bill of exchange which has been accepted?: Acceptor (Drawee) of the Bill.

183. 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.

184. Who can make nomination in the deposit account of a minor?: Guardian on behalf of the minor.

185. Who can be a nominee?: Only an individual

186. If a depositor dies, payment to nominee or legal heirs should be made within: 15 days of completion of formalities.

187. 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

188. 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

189. 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.

190. 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.

191. Bearer uncrossed cheque can be paid to whom: To the bearer

192. On, other than a negotiable instrument, what is the time period for payment of stamp duty, if the ocument is executed outside India : 3 months

193. May I help you counter is to be provided by bank branches other than : Small branches

194. In case of a jointly operated joint account, the nominee can obtain payment, when : none of the account holder is alive

195. A bank branch receives a counterfeit note of Rs.500, which customer wants back. What the bank should do : Impound the currency note, but No credit of full amount to customer.(No credit to customer’s account is to be given for counterfeit notes) Master Circular DCM(FNVD)G - 4/16.01.05/2017-18 dated July 20, 2017

196. When rate of interest is expressed by adjusting the impact of inflation, this is called : Real rate of Interest

197. Banks can ask for deposit of advance rent on hiring a locker for a period up to : 3 years

198. The crossing on a cheque is required to be can celled.Who can do so: Drawer