CASE STUDIES ON DOCUMENTARY CREDITS AND UCP600

 CASE STUDIES ON DOCUMENTARY CREDITS AND UCP600

CASE STUDY 1
Banks have a practice of calling for the original LC at the time of presentation of documents and
endorse any drawings on its reverse.
LC's may be made available by Acceptance / Defferred Payment / Negotiation and to be freely
available with any bank.
Is it mandatory to endorse the original LC on its reverse?
Analysis
Most LCs contain a clause indicating such a requirement.
The practice is required by SWIFT standards cat.7, for freely negotiable credits, available with any
bank.
Conclusion
What is the problem?
CASE STUDY 2
If a nominated bank does not incur a deffered payment undertaking on presentation of complying
documents and forwards them to the Issuing Bank.
Subsequently can it a purchases a deferred payment undertaking from the issuing bank and seek
protection under UCP600?
Articles 7c. UCP600
CASE STUDY 3
If a LC is confirmed and is available with the Confirming Bank and the beneficiary chooses to
present the document directly to the Issuing Bank and the Issuing Bank wrongfully dishonors.
Should the confirming bank honor the presentation given that the LC has meanwhile expired?
Article 8a. UCP600
CASE STUDY 4
A documentary credit requires all documents must to be issued in English language.
The presentation includes a Certificate of Origin bearing a Stamp / Legalisation done in another
language
Is this a discrepancy?
Issued in?
CASE STUDY 5
As per Article 38 of UCP 600, A LC can be transferred to more than one second beneficiary. This
can be done preferably when the Partial Shipments are allowed under the LC.
If the first Beneficiary is certain that he would be able to comply with article 31(b) of UCP600 (re
partial shipments – submission of multiple BLs on the same voyage), can a LC be transferred to
more than one second beneficiary even if the LC states Partial Shipment is prohibited provided
Article 38.d. UCP600
CASE STUDY 6
If the nominated bank does not accept a bill of exchange drawn on them by the beneficiary, can the
same bill of exchange be presented to the issuing bank or should they present a fresh bill of
exchange drawn on the Issuing Bank
UCP Article 7a (iv)
CASE STUDY 7
Under the documents required a LC calls for a Bill of Lading.
Bill of Lading submitted with the documents is signed by a forwarder as carrier.
Is it a discrepancy?
Article 20 UCP600
CASE STUDY 8
L/C requirement: invoices in 3 fold and Legalized by Chamber of Commerce.
Beneficiary submits invoices with only one legalized and others without being legalized.
Is it a discrepancy?
Article 17e. UCP600
CASE STUDY 9
LC calls for a Beneficiary's certificate stating the expiry date (of the product).
The certificate presented states only the month and the year of expiry.
Is it a discrepancy?
Bankers are expected to have a certain amount of general knowledge and common sense
CASE STUDY 10
The documents required in a transferable LC calls for an Inspection Certificate issued by the First
Beneficiary.
At the request of the First Beneficiary LC is transferred to a Second Beneficiary without calling for
the Inspection Certificate, which the first beneficiary undertakes to submit along with drafts and
invoices to be presented for substitution.
Has the Transferring Bank acted in aprudent manner.
Sub-article 38g of UCP600
CASE STUDY 11
A LC states the last date for shipment as 09 November 2014 and the expiry as 30 November 2014,
is silent on the period of presentation and also states ‘Stale Bills of Lading Acceptable”.
Documents presented on 01 October 2014 with the Bill of Lading dated 01 June 2014 refused by
the Issuing Bank stating Late Presentation (not presented within 21 days after the BL date as per
article 14.c UCP600)..
The negotiating Bank does not agree with the reason for refusal.
Should the Issuing Bank honour?
Rule A19.b ISBP745
Case Study 12
The documentary credit in question issued subject to UCP600 called for shipment from “ANY
NORTH EUROPEAN PORT” and the transport document required in field 46a was: “FULL SET OF
CLEAN ON BOARD BILL OF LADING”.
The Nominated Bank received a bill of lading evidencing shipment from Antwerp, which we found to
be within the scope of North Europe, since the geographical area of North Europe was not defined
in the Credit.
The Issuing Bank refused the documents arguing that Antwerp is not within the geographical area
or range stated in the Credit.
The Issuing Bank further argued that Belgium is in Western Europe and not in Northern Europe and
quoted an internet website (www.mapsofworld.com) where we could easily recheck.
Is the discrepancy cited by the issuing bank valid?
Analysis
UCP 600 sub-article 14 (a) states that a bank must examine a presentation on the basis of the
documents alone.
It is not a matter for the ICC Banking Commission to define or determine geographical areas or
ranges. The requirement in the credit is vague and clearly ambiguous.
In accordance with ISBP 745 Preliminary Considerations paragraph (v), the applicant bears the risk
of any ambiguity in its instructions to issue or amend a credit.
Furthermore, an issuing bank should ensure that any credit or amendment it issues is not
ambiguous or conflicting in its terms and conditions.
It should not be necessary to refer to external resources in order to determine relevant facts.
Conclusion
The applicant and issuing bank must bear the risk of ambiguity for failing to express specifically how
“Any North European Port‟ is to be defined.
In this case, the document is not discrepant.
Case Study 13
Under a credit issued subject to UCP600 by Bank V in country W available by negotiation and
expiring with Bank A in country N, Bank A added its confirmation. Upon presentation of complying
documents Bank A negotiated and discounted. Documents were refused by Bank V for the following
reason: “Health Certificate to be presented in 1 original and 2 copies but only presented in 1 original
plus 1 copy.”
Bank A stated that all required originals and copies were presented to them within the time limits
foreseen by the credit, but admitted to having made an operational mistake by leaving one copy of
the Health Certificate in their file and by only sending 1 original and 1 copy to Bank V.
Bank A requested Bank V to create a second copy on Bank A‟s account, or to instruct Bank A to
courier the missing copy, but Bank V did not provide agreement. In the absence of any instructions,
and after the expiry date of the credit, Bank A couriered the missing copy document to Bank V,
certifying on their letter that it was presented within the time limits of the credit. Bank V still refused
to honour the presentation.
Has the Issuing Bank the right to refuse the documents on the basis of the missing copy of the
Health Certificate, in spite of the fact that the missing copy was sent to them after the expiry date,
but with the declaration of the negotiating bank that the copy was presented within the time limits
foreseen under the LC?
Analysis
The credit was available for negotiation with the Nominated Bank and expired at their counters.
UCP 600 sub-article 6 (d) (ii) states: “The place of the bank with which the credit is available is the
place for presentation. The place for presentation under a credit available with any bank is that of
any bank. A place for presentation other than that of the issuing bank is in addition to the place of
the issuing bank.”
UCP 600 article 6 (e) states: “Except as provided in sub-article 29 (a), a presentation by or on
behalf of the beneficiary must be made on or before the expiry date.”
In accordance with UCP 600 sub-article 7 (c) an Issuing Bank undertakes to reimburse a nominated
Bank that has honoured or negotiated a complying presentation and forwarded the documents to
the Issuing Bank.
The Issuing Bank did not receive all the required documents and subsequently issued a refusal
notice. The Nominated Bank, after an exchange of correspondence with the Issuing Bank,
forwarded the missing copy document to the issuing bank certifying that it had been presented
within the time limits required by the credit.
Conclusion
The initial cited discrepancy is valid. However, upon receipt by the issuing bank of the missing copy
document, and on the basis that it also received a certification from the negotiating bank that the
document was presented within the time limits required by the credit, the issuing bank must
reimburse the confirming bank.
Cade Study 14
Under a credit issued by Bank V in country V available by negotiation and expiring with Bank A in
country N, Bank A added its confirmation. Upon presentation of complying documents Bank A
negotiated and discounted. Documents were refused by Bank V for the following reason: “Health
Certificate to be presented in 1 original and 2 copies but only presented in 1 original plus 1 copy.”
Bank A stated that all required originals and copies were presented to them within the time limits
foreseen by the credit, but admitted to having made an operational mistake by leaving one copy of
the Health Certificate in their file and by only sending 1 original and 1 copy to Bank V.
Bank A requested Bank V to create a second copy on Bank A‟s account, or to instruct Bank A to
courier the missing copy, but bank V did not provide agreement. In the absence of any instructions,
and after the expiry date of the credit, Bank A couriered the missing copy document to Bank V,
certifying on their letter that it was presented within the time limits of the credit. Bank V still refused
to honour the presentation.
Has the Issuing Bank the right to refuse the documents on the basis of the missing copy of the
Health Certificate, in spite of the fact that the missing copy was sent to them after the expiry date,
but with the declaration of the negotiating bank that the copy was presented within the time limits
foreseen under the LC?
Analysis
Although not indicated in the query, it is assumed that the credit was issued subject to UCP 600.
The credit was available for negotiation with the nominated bank and expired at their counters.
UCP 600 sub-article 6 (d) (ii) states: “The place of the bank with which the credit is available is the
place for presentation. The place for presentation under a credit available with any bank is that of
any bank. A place for presentation other than that of the issuing bank is in addition to the place of
the Issuing Bank.”
UCP 600 article 6 (e) states: “Except as provided in sub-article 29 (a), a presentation by or on
behalf of the beneficiary must be made on or before the expiry date.”
In accordance with UCP 600 sub-article 7 (c) an issuing bank undertakes to reimburse a nominated
bank that has honoured or negotiated a complying presentation and forwarded the documents to
the issuing bank.
The issuing bank did not receive all the required documents and subsequently issued a refusal
notice. The nominated bank, after an exchange of correspondence with the issuing bank, forwarded
the missing copy document to the issuing bank certifying that it had been presented within the time
limits required by the credit.
Conclusion
The initial cited discrepancy is valid. However, upon receipt by the issuing bank of the missing copy
document, and on the basis that it also received a certification from the negotiating bank that the
document was presented within the time limits required by the credit, the issuing bank must
reimburse the confirming bank.
Cade Study 15
Bank A (Issuing Bank) in country A issued a standby credit subject to UCP 600 which was advised
to the beneficiary in country B by Bank B (Advising Bank).
The beneficiary presented a demand under the credit which arrived at the counters of the Bank A
before the expiry date of the credit.
Bank A issued a notice of refusal on the third day following presentation stating one discrepancy:
“Original Standby LC Not Presented”.
There was no wording in the credit requiring presentation of the original Standby LC.
1) Is the discrepancy stated by the Bank A correct?
2) Can Bank A raise further discrepancies at a later date in respect of the one presentation made by
the beneficiary under the credit?
Analysis
1) The wording of the credit did not require the presentation of the original credit as part of the
claim. Unless the credit was issued by mail or in paper format, it is doubtful how the originality of the
document could be determined. Accordingly, unless otherwise specifically required within the terms
and conditions of a credit, there is no requirement for the original credit to be included in the
presentation.
2) UCP 600 sub-article 16 (c) states that when a bank decides to refuse or negotiate, it must give a
single notice to that effect to the presenter. UCP 600 clearly does not allow for further discrepancies
to be raised that were apparent at the time of the initial presentation, as is referred to within former
ICC Opinions R196, R328, R271 and TA764rev.
Conclusion
1) The discrepancy is not valid.
2) Additional discrepancies are not to be considered, as banks only have one opportunity to raise
discrepancies for each presentation.
Cade Study 16
Under a documentary credit subject to UCP 600 the beneficiary of the L/C presented, amongst
other documents, a charter party bill of lading (CPBL), made out in accordance with the terms and
conditions of the respective L/C, signed and stamped as shown hereafter:
According to UCP 600 sub-article 22 (a) (i), a CPBL must appear to be signed by any of the
following parties:
· the master,
· the owner,
· the charterer, or
· a named agent for any of the above.
The stamp shows, however, that the master is signing “On behalf of Owners”.
As this is a case not contemplated by UCP 600 sub-article 22 (a) (i) like the signing by a carrier or a
named agent for the carrier as indicated in Official Opinion 470/TA.775rev., we would like to know
the opinion of the ICC Banking Commission to this case, i.e. whether this is an acceptable way of
signing or not: If the answer is that it is not acceptable, whether it would be acceptable, if the name
of the owner(s) would be stated.
Analysis
UCP 600 sub-article 22 (a) (i) states that a CPBL must appear to be signed by:
· the master or a named agent for or on behalf of the master, or
· the owner or a named agent for or on behalf of the owner, or
· the charterer or a named agent for or on behalf of the charterer.
Furthermore, it states: “Any signature by the master, owner, charterer or agent must be identified as
that of the master, owner, charterer or agent.”
ISBP 745 paragraph G4 (b) states: “When the master (captain), owner or charterer signs a charter
party bill of lading, the signature of the master (captain), owner or charterer is to be identified as
“master” (“captain”), “owner” or “charterer”.
ICC Opinion 470/TA.775rev does not apply as it relates to a CPBL issued and signed by a carrier or
its agent.
The signature on the CPBL is identified as that of the master (captain). The master is signing for
and on behalf of the owner.
Conclusion
The document is acceptable.
Cade Study 17
The Documentary Credit issued subject to UCP 600 by an Issuing Bank located in country X on
behalf of an applicant also located in country X and confirmed by a Bank located in country Y
required in field 46a “documents required” amongst other the following document:
Quote Bank guarantee from international first class bank payable in country X equivalent to EUR
xxxxx [the guarantee indicates an amount] valid till xx.xx.xxxx [the guarantee indicates a fix date].
Unquote
The bank guarantee presented to the Confirming Bank is issued by a bank located in country Y and
states that it is subject to the laws of country Y. The wording of the presented guarantee shows the
applicant of the Letter of Credit as beneficiary of the guarantee. The amount and expiry date of the
guarantee are in compliance with the requirements stipulated in the Letter of Credit. The payment
undertaking of the guarantee is worded as follows:
QUOTE
We, xxx [the guarantee indicates the guaranteeing bank], hereby irrevocably undertake to
pay you [the guarantee is addressed and directed to the applicant of the Letter of Credit]
without delay on your first written demand for payment an amount up to xxx [the guarantee
indicates an amount] provided your demand for payment is simultaneously supported by (…)
UNQUOTE
The wording of the guarantee does neither contain an express indication that it is “payable in
country X” nor any express reference to country X being the place of payment.
The Confirming Bank accepted the presented guarantee but the Issuing Bank raised the following
discrepancy: “Bank Guarantee from international bank is not payable in country X.”. Please let us
have your official opinion whether and if so why the issuing bank was entitled to raise the
discrepancy by answering the following questions:
1. Is the guarantee only compliant if it either indicates expressly that it is “payable in country X” or
contains an express reference to country X being the place of payment? Or can it be argued that
the guarantee meets the requirement “payable in country X” because it is issued in favour of a
beneficiary located in country X and as it provides that payment thereunder has to be made to this
beneficiary?
2. Would the requirement “payable in country X” be met if the guarantee is made out as described
above but is not issued by a bank located in country Y but in country X?
3. Does the stipulated requirement “payable in country X” require the document checker to
determine whether the presented guarantee‟s place of payment is country X?
4. Could the confirming bank argue validly that the Letter of Credit does not stipulate that the
requirement “payable in country X” must be met by an express reference or wording in the
guarantee document (e.g. 46a: Bank guarantee from international first class bank indicating that it is
“payable in country X” equivalent to (…)”) and that this requirement may therefore be deemed as
non-documentary and not stated and thus be disregarded according to UCP 600 sub-article 14 (h)
5. Could the confirming bank argue validly that the checking of the document falls with respect to
the requirement “payable in country X” under the auspices of UCP 600 sub-article 14 (f) because
this requirement is worded in way that does not amount to a stipulation of the document‟s data
content ?
Analysis
The credit included, in field 46a of the MT700, a requirement for a guarantee to be issued by an
international first class bank payable in country X (the country of the credit issuing bank). Apart from
amount and expiry date, no other requirements were provided. The credit was confirmed by a bank
in country Y (the country of the credit beneficiary).
The actual guarantee that was presented to the confirming bank was issued by a bank in country Y,
stating that it was subject to the laws of country Y.
The guarantee contained a statement from the guarantee issuing bank that they irrevocably
undertook to pay the guarantee beneficiary (the applicant of the credit) without delay on first written
demand for payment. It did not include an explicit statement or reference that the guarantee was
payable in country X.
Whilst the Confirming Bank accepted the guarantee as a compliant document under the credit, the
Issuing Bank refused on the basis that the guarantee was not payable in country X.
In view of the fact that the beneficiary of the credit was located in country Y, it is not unusual that
they would use a bank in their own country to issue the guarantee, as was the case in this query.
The guarantee had been issued directly in favour of the beneficiary (the credit applicant) in country
X, and not via another bank in country X. It included a condition that payment would be made
against first written demand. It does not state a place for presentation. Because the guarantee did
not state a place for presentation, demands must be presented at the issuing bank. The issuing
bank is located in country Y.
Conclusion
1. The guarantee needed to clearly state that it was payable in country X. In order to achieve this, it
would have needed to be payable at the counters of a bank in country X, and not at the counters of
the guarantee issuing bank in country Y. The fact that the guarantee was issued directly in favour of
the beneficiary (credit applicant) in country X and was payable against first written demand, did not
fulfil this requirement.
2. If the guarantee had been issued by a bank in country X, this would have met the requirements of
the credit.
3. The place of payment of the guarantee was to be stated as “in country X‟ or determinable as
being within country X.
4. The requirement for the guarantee clearly related to a requirement for an actual document.
Consequently, UCP 600 sub-article 14 (h) is not applicable.
5. The condition in the credit “payable in country X‟ is a specific requirement that must be clearly
reflected in the guarantee document if it is to fulfil its function. The discrepancy raised by the issuing
bank is valid.
CASE STUDY 18
The relevant LC conditions:
1) (Under documents required): Full set of clean on-board marine bills of lading consigned to order,
blank endorsed, notify applicant and marked “freight payable as per charter party”
2) (Under other conditions): Charter Party BL acceptable
The presented BL shows:
a) “freight payable as per charter party”
b) signed by XXX Logistics Co Ltd as agent for carrier YYY Shipping Lines Ltd
c) the reverse page shows the shipper’s blank endorsement
d) reverse page also shows typical shipping contract terms & conditions (i.e. not the usual Charter
Party BL terms & conditions)
In short, the BL (front and back), other than the freight statement, does not display anything to
suggest that it is subject to a charter party contract.
Issuing Bank paid but deducted a discrepancy fee for the waived discrepancy of “Charter Party BL
signatory’s capacity not as master, owner, charterer or agent for any of the aforesaid”. Issuing
Bank’s position appears to be that, by virtue of the LC‟s BL freight requirement, the LC is actually
calling for a Charter Party BL. And because the BL does show such freight statement, the BL is to
be treated as being subject to a charter party contract, and therefore the BL must be signed in
accordance with Article 22 (a) (i).
Negotiating Bank of course disagreed and countered that the freight phrase was not enough
evidence that the BL was a Charter Party one. It argued that, save for the freight phrase; its terms &
conditions (on reverse page) were those of a conventional BL. If it is a conventional BL, then issuing
bank’s discrepancy is incorrect. It should be instead: “Conventional BL presented but contains an
indication that it is subject to a charter party”..
ANALYSIS
The credit required a marine bill of lading marked “freight payable as per charter party‟. In this
respect, the credit was badly worded. The presented bill of lading was marked “freight payable as
per charter party”.
ISBP 745 paragraph G2 (b) states: “A transport document, however named, indicating expressions
such as “freight payable as per charter party dated (with or without mentioning a date)”, or “freight
payable as per charter party”, will be an indication that it is subject to a charter party.
ISBP 745 paragraph G1 states: “When there is a requirement in a credit for the presentation of a
charter party bill of lading, or when a credit allows presentation of a charter party bill of lading and a
charter party bill of lading is presented, UCP 600 article 22 is to be applied in the examination of
that document.
Where a credit simply allows for or requires the presentation of a CPBL, a CPBL issued and signed
by a carrier or its agent is discrepant under UCP 600 sub-article 22 (a) (i).
CONCLUSION
The discrepancy raised by the issuing bank, “Charter Party BL signatory‟s capacity not as master,
owner, charterer or agent for any of the aforesaid”, is correct.
CASE STUDY 19
L/C available with Advising Bank by payment, however the Advising Bank did not act under our
nomination and has sent documents presented by the beneficiary to the Issuing Bank without
examining them (in accordance with beneficiary's request). No message was received from the
issuing bank, Advising Bank received a MT910 from their correspondent bank informing us of the
credit entry on our account and containing information in field 72: /EUR100 deducted as discr.fee/.
The documentary credit included the following clause: 'discrepancy fee of EUR 100.00 will be
deducted from the proceeds any drawing if documents are presented with discrepancies'
We have contacted issuing bank arguing that since they had not acted in accordance with UCP 600
sub-article 16 (c) (ii), quoting every single discrepancy they should be precluded from deducting
discrepancy fee.
An answer was received that their action has nothing to do with UCP 600 article 16 and that if we
want to find out about discrepancies we will have to ask for it. It seems that they are acting in line
with the conclusion of a/m Opinion. Nevertheless, we cannot agree with it.
In the opinion of the Issuing Bank and according to UCP600 sub-article 16 (a) an issuing bank
determines if a presentation does not comply. By deducting their discrepancy fee they obviously
wanted to indicate that the presented documents did not comply.
As per article UCP 600 sub-article 16 (b) issuing bank may in its sole judgment approach the
applicant for waiver, but that does not extend period of time mentioned in UCP 600 sub-article 14
(b), nor does it (in our opinion) annul the provisions of UCP 600 sub-articles 16 (c), (d), (e) and (f).
Achieving applicant's acceptance of discrepancies does not justify the action of not listing all
discrepancies, even when sending message indicating acceptance (such as in MT752).
Advising Bank is of the opinion that if Issuing Bank determines that presented documents contain
discrepancies, all discrepancies should be quoted either in separate MT734 or in MT752 within 5
working days. Otherwise they are precluded claiming that documents are discrepant (and
accordingly not allowed to deduct discrepancy fee)
ANALYSIS
A presentation of documents had been paid by the issuing bank deducting their discrepancy fee.
Prior to payment no notice of refusal has been sent nor had any information on discrepancies been
provided by the issuing bank.
When an issuing bank finds discrepancies in documents, it has two options available to it under
article 16: to provide a refusal message to the presenter in terms of sub-articles 16 (c) and (d) or, to
approach the applicant for a waiver without first providing a notice of refusal (sub-article 16 (b)).
When the option of approaching the applicant for a waiver is chosen, and such waiver is given and
accepted by the issuing bank, the practice is for the issuing bank to honour, and such honour will be
less any discrepancy fee that was stated in the credit.
When this course of action is taken, the issuing bank should provide the presenter, as part of their
payment message or in a separate communication, details of the discrepancies that were observed.
The presenter can then choose to dispute the discrepancies, therefore questioning the relevance of
the deduction representing the discrepancy fee. If the issuing bank does not provide such an
indication, the presenter may seek, and the issuing bank must provide, such details. The actions of
the issuing bank, as described in situation D, do not represent preclusion under sub-article 16 (f).
Conclusion:
The Issuing Bank is entitled to a discrepancy fee as outlined in the credit, but it should inform the
presenter of the discrepancies that were found, either in the advice of payment or in a separate
communication.
The issuing bank is not required to send a notice of refusal to the presenter if it elects to contact the
applicant for a waiver and to receive a waiver that is acceptable to it. Sub-article 16 (f) does not
apply in these circumstances.
If the covering schedule listed the discrepancies that the presenter had found, the Issuing Bank
should either advise the presenter that the documents were taken up despite the discrepancies that
had been identified by the presenter, or list the discrepancies for which the issuing bank had sought
waiver from the applicant.
It is only when an issuing bank does not indicate the discrepancies that there should be a need for
the presenter to seek such details. The default position is that an issuing bank, in order to justify a
discrepancy fee, should always indicate the discrepancies by one of the methods described above.
When an issuing bank has approached the applicant for a waiver, and received such waiver and
decided to act upon it, it does not need to send a notice of refusal in accordance with UCP 600 subarticle
16 (c) in order to be entitled to deduct a discrepancy fee when it honours a presentation. In
such circumstances, UCP 600 sub-article 16 (f) does not apply.
When a bank deducts a discrepancy fee on the basis of a “discrepancy fee clause‟ in a credit, it is
good banking practice to inform the presenter of any discrepancies that were found in the
documents, either in the advice of payment or in a separate communication. In the event they fail to
do so, this does not preclude them from providing such information subsequently.

Caiib BFM recollected questions on June 2018

 Memory recalled questions of BFM (Batch3 – 2.00 pm 10-06-2018)

1. WHAT IS NOSTRO ACCOUNT, QUESTION HAVING VERY CONFUSING DEFINATION
2. Case study on LC- question to find advising bank
3. Case study on LC- question to find negotiating bank
4. Case study on LC- question to find issuing bank
5. Case study on LC- question to find confirming bank
6. In LC nothing is mentioned and it should be considered which lc- answer was irrevocable
7. Case study  to find the best possible rate out of two banks rate for sending money abroad, whether tt selling rate, tt buying rate will be applicable
8. Case study to find the best possible rate out of two banks rate for sending money from FCNR deposit, answer none of these as FCNR is already in USD
9.  Case study on to find the best possible rate out of two banks rate tt selling rate, tt buying, currency buying/selling rate will be applicable
10.  Question related to Yield on bonds, numerical type
11. Leverage ratio calculation
12. Case study on TT buying rate to find the best possible rate out of two banks rate
13.  In stock of HQLA for the purpose of cap liquidity and coverage ratio
14. Notional transit period time- 25 days
15. Question can POA can send the remittance from NRE a/c – no
16. What is American style?
17. What is European option style
18. One question to calculate modified duration
19. Features of FIMMDA
20. Notice money time period- 2 to 14 days
21. Difference between CLN and CDS
22. Question to find the economic equity ratio
23. ONE question on at the money
24. One question of out of money
25. One question on in the money
26. Who developed FX clear- RBI, CCIL, SEBI, answer CCIL
27. Features of CBLO
28. What  is repo
29. Risk pricing related question to find the practical use of it out of options
30. Case study related to rating migration- %age change in the AAA, AA, B rate companies as compared to previous year- 3 questions were there
31. Role of Board of directors in management of risk, question was who makes policies, risk limits, system for the risk management
32. In the above question, who is responsible for implementation of the same
33. Penalty for not crediting the amount claimed by the correspondent bank, 1%, 2%, 3%,4%
34. Case study related to FC, NRI gets 20000USD and wants to get it credited in his NRE a/c is it possible- 4 option were given, correct one was  can be done by taking CDF
35. Capital charge for foreign exchange
36. Case study on NII- to find the %age change in NII when interest rate declines by 1% in given interest rates
37. Case study on NII- to find the %age change in NII when interest rate declines by .05% in given interest rates
38. Case study on NII- to find the %age change in NII when interest rate declines by 1% in assests in given interest rates
39. Question to find capital fund.
40. Questions to find the CRAR and RWA of Bank A and Bank B
41. Questions to make comparison of Bank A and B related to their asset liability management
42. key priniciples in Supervising review process of basel III
43. call option and put option case study to find whether the holder of call option will utilize the deal or not
44. call option and put option case study to find whether the holder of put option will have profit or loss by making the deal
45. impact of CRR

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.

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

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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

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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

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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

JAIIB AFB recollected questions on 12.12.2020

 1 entries almost involved which of the following options

2 about trial balance

3 current ratio of a concern is 1 then its net working capital is

4 about adjustment entry

5 passbook is a copy of

6 Goodwill is what type of account

7 accommodation bills is what type of account

8 book value sum asked

9 Bank permitted to engage certain classes of business under which act

10 calculation of p/e what are items required

11 stock account is a related to

12 trial balance is 

13 current yield bond some asked

14 current yield of a bond is inversely related to

15 repayment of entire loan at the end of loan period term payment it or compounded payment

16 accounting standard deals with?

17 in foreign currency transactions forward differential rate is known as?

Wdv related questions

Ratios definition

Passbook

Ytm

Bz entity concept

Mostly depreciation related numericals