Legal and Regulatory Aspects of Bank (JAIIB)- 5
Description: Legal & Regulatory Aspects of Banking | |
Number of Questions: 120 | |
Created by: Girish Goud | |
Tags: JAIIB Legal and Regulatory Aspects of Bank Constitution Sale of Goods Act Banking Awareness Regulation of Banking Business Functions of Banks Public Sector Banks and Cooperative Banks Banking Regulation Principles and Practices of Banking Regulations and Compliance Legal and Regulatory Aspects of Banking Legal Aspects of Banking Operations Banking Operations and Accounting Functions Legal Framework of Regulation of Banks |
Which of the following partners is liable in relation to the firm?
The partnership deed must be properly drafted and stamped according to the provision of
Rath of Cuttack orders Dinesh of Delhi to deliver 1,000 bags of goods (i: e. cement) to him at Delhi. While the goods are lying at New Delhi Railway Station, the station master informs rath of Cuttack that goods are held at rath's risk. But Rath has become insolvent. In this case
Co-operative banks operating in different states are registered under
In which of the following forms of businesses may banking companies emerge?
Banking companies are not permitted to give dividend until all _____________ are written off.
Which of the following is/are true with regard to the functions of central bank?
(i) Custodian of cash reserves of commercial banks (ii) Custody and management of foreign exchange reserves (iii) Clearing house for transfer and settlement. (iv) Lender of the last resorts.
Which of the following statements are true with regard to statutory corporation?
(i) Generally financed by the central or state government (ii) Can not recruit and appoint their employee with their service condition (iii) Have a separate legal entity (iv) A lot of government interference in matters of the corporation
A Chairman who is appointed on a whole-time basis as a Managing Director of a banking company should not have ____________ in any other company.
Which of the following is/are not important regulations relating to acceptance of deposits by NBFCs?
(i) The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. (ii) NBFCs should have minimum investment grade credit rating. (iii) The repayment of deposits by NBFCs is guaranteed by RBI. (iv) NBFCs can offer gifts/incentives or any other additional benefit to the depositors.
Reserve Bank may issue directions to baking companies under Section 21 of Banking Regulation Act on
The amount transferable to the reserve fund by the banks incorporated in India is _________ of the profit for each year.
The term ‘loans and advances’ will not include loans or advances against
Which of the following statements is/are false?
(i) The maximum period of office that may be held continuously by an ordinary director in a banking company is eight years. (ii) The banking company or the person affected by the RBI order may appeal to the central government within 90 days. (iii) At least 71% of the directors should have the qualification prescribed under section 10A (2) of Banking Regulation Act. (iv) A director of a banking company should not have substantial interest in any other company.
Reserve Bank is empowered to conduct ____________ of a banking company under Section 35(1) of the Banking Regulations Act.
______________ may apply to the High Court for winding up of a banking company under Section 38 of the Banking Regulations Act.
Which is/are not true with regard to Smart City Brake Support (SCB) exemptions from maintaining Cash Reserve Ratio?
(i) Demand and Time Liabilities in respect of their Offshore Banking Units (ii) Liabilities to the banking system in India as computed (iii) Credit balances in ACU (USD) Accounts (iv) SCBs are required to include inter-bank term deposits/term borrowing liabilities of original maturities of 15 days and above
The State Bank of India has power to acquire ______________ under the State Bank of India Act.
Which of the following statements is/are true?
(i) A parent AIFI presenting CFS shall consolidate all subsidiaries, domestic as well as foreign. (ii) The AIFIs shall not use the same format for CPRs purposes as their solo balance sheet. (iii) In addition to solo level financial statements, the AIFIs shall also prepare and disclose consolidated financial statements. (iv) The AIFIs need not to follow the guidance on specific issues with respect to certain accounting standards.
A co-operative bank is
Co-operative banks have to prepare their balance sheet and profit and loss account in the forms set out in the Third Schedule to
The law relating to the payment of cheques and protection to a banker is contained in
A customer is bound to inform the ____________ about lost cheque leaves.
Section 131A of the Negotiable Instruments Act extends the protection granted to a banker while
In a joint account, if one of the signatures is forged,
The duties of collecting bank to claim protection has been laid down under the
Payment to be made in due course
Which of the following statement are true?
(i) Central Government can acquire the undertaking of a banking company under Section 36 AE of the Banking Regulation Act in the interest of banking policy without any report from the Reserve Bank on the affairs of the banking company. (ii) Central Government may make the scheme for carrying out the purposes in relation to the acquired bank after consultation of RBI under section 36-AF. (iii) On the application of Reserve Bank, the High Court may stay the commencement or continuance of proceedings against any banking company for any period. (iv) The Reserve Bank or State Bank or another person as specified by the Reserve Bank in its application before the High Court may be appointed as liquidator of a baking company.
Individual borrowers are governed by
In the absence of proper reference, the banker can be held liable on the grounds of
A Public Limited Company shares are:
Private trusts are governed by
Cash Credit facility is a
Which of the following is/are false?
(i) The Central Board in discharging its functions shall act on business principles, regard being had to public interest. (ii) The Central government is authorised to give any directions to the State Bank in matters of policy involving public interest. (iii) The provisions of Section 42 of the Reserve Bank of the India Act relating to cash reserve applicable to commercial banks. (iv) Every person who immediately before the appointed day is registered as a holder of shares in the Imperial Bank shall be entitled to compensation.
In a Hindu undivided family, the business of the family is managed by
For delayed credit in customer's bank account, bank is not liable, if the delay is due to
A person promising to save another from loss is called
The limitation for recovery of the outstanding amount in the cash credit account is ______________ years from the last deposit made by the borrower.
There are ___________ parties to a contract of indemnity.
Bills co-acceptance facility is a
Indemnifier's liability in a contract of indemnity is
Which of the following can refer to a type of secured line of credit with a lender?
The letter of credit is opened on the request of
There are ______________ parties to a guarantee.
In case of invocation of the guarantee, the authorised dealer bank should send a detailed report to
The bank who opens letter of credit is called
The advising bank’s responsibility is to
Guarantee is issued in the favour of
An instruction to the bank from an account holder to pay a sum of money to a creditor on completion of certain conditions is known as
The confirming bank
Negotiating bank is the bank which
Reimbursing bank is the bank that
Which of the following statements is/are true?
(i) There are three parties to a contract of indemnity, the indemnifier, the indemnity holder and the person on whose behalf the indemnity is given. (ii) Indemnifier’s liability occurs only if the indemnity holder suffers loss. (iii) Contract of Indemnity can not have all the essentials of a valid contract. (iv) Indemnity can be treated as a sub-species of compensation
___________represents the first beneficiary in their absence, wherein the credits belonging to original beneficiary is transferable as per terms.
Which of the following statements is/are correct?
The maker of the bill is called
Bill of exchange means an
Bill purchase facility is granted in the case of
Which of the following statement is/are false?
(a) Banks (AD-1) are authorised to issue BGs on behalf of Indian agents of foreign airline companies. (b) Banks cannot issue unconditional guarantees in favour of overseas employers/importers on behalf of Indian exporters. (c) It will be important for the banks to carry out due diligence and verify the track record of such exporters to assess their ability to execute export orders. (d) Banks can issue bank guarantee/Letter of Undertaking (LoU)/ Letter of Comfort (LoC) in favour of the overseas supplier, bank and financial institution up to USD 30 Mn. per import transaction .
Ownership of goods can be transferred by endorsement and delivery of
Insurance contracts are contracts of
Bills of lading, dock warrants, warehouse-keeper’s certificate, etc. are some examples of
For a loan against fixed deposit receipt
Mortgage is _____________ in the immoveable property.
A mortgage where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage-money is known as
Mortgage, where the mortgagor binds himself to repay the mortgage-money on a certain date and transfers the mortgaged property absolutely to the mortgagee is known as
Which of the following statements is/are true?
(i) The mortgage deed is the evidence of the interest transferred to the mortgage holder. (ii) There are three parties to a mortgage. (iii) A deed of trust involves two parties. (iv) Preference shares have the advantage of a higher priority claim to the assets of a corporation in case of insolvency
Mortgage, where the mortgagor ostensibly sells the mortgaged property on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute is known as
Limitation period for filing a suit for sale of mortgaged properties is __________ years from the date the mortgage debt becomes due.
Pledge means ___________ of goods for purpose of securing a payment of debt or performance of promise.
Hypothecation is an implied pledge in case where
Which of the following statements is correct?
Which of the following persons can make a valid pledge?
Charge means which of the following?
(i) Interest (ii) Right which a lender obtains (iii) Right which a creditor obtains
Charges created by company shall be registered with which of the following?
Under Companies Act, a charge includes
Charge shall be registered within ____________ days from the date of creation of charge.
After Mardia Chemical Case, the amendment made in the SARFAESI Act stipulated deposit of ________ amount before preferring the appeal to DRT (Appellate Tribunal).
Which of the following regulates Collective Investment Schemes (CIS)?
Provisions of SARFAESI Act, 2002 applies
Can moveable securities in possession of the bank be sold by the bank without the intervention of the court?
What did the Supreme Court declare as invalid in the Mardia case?
Which of the following is/are the right(s) of the borrower as per SARFAESI Act, 2002?
SARFAESI Act was enacted for regulating securitisation and reconstruction of ________ and enforcement of security interest created in favour of secured ________
When any bank or financial institution obtains a charge against property, with the _____, the transaction will have to be registered under the SARFAESI Act, 2002.
If the borrower does not pay within ____________ days after notice by the secured creditor, the creditor can ___________ of the security.
As per SARFAESI Act, 2002, security receipt is required when
Are existing or future receivables property?
For each asset acquired or to be acquired by the securitisation company or the reconstruction company, there should be
Which of the following is a function of a securitisation company?
When the securitisation company or reconstruction company issues security receipts, the holder thereof is entitled to a ____________ in the financial asset.
The authorised officer shall serve to the borrower a notice of _______ days for sale of the immovable secured assets.
After application of the SARFAESI Act, the existing companies
Which of the following is a reason for the cancellation of registration of the securitisation company and reconstruction company without giving a hearing opportunity?
Who has the power, by notice in writing, to recover any money from any person who has acquired any of the secured assets from the borrower?
On sale of security asset, the sale proceeds are appropriated firstly towards
Which of the following is not the change introduced by the SARFAESI Act in the law relating to creation and enforcement of security?
Is breach of RBI directives a punishable offence and to what extent?
Provisions of the SARFAESI Act are applicable to which of the following?
The object of introducing the Banking Ombudsman Scheme, 2006 is
When do the rules framed by the Central Government get valid under the Act?
Complaints relating to non-acceptance of small denomination notes by a bank can be made to a Banking Ombudsman because
Can complaints be made against promises made by sales agents but not fulfilled by the bank represented by them under the Banking Ombudsman Scheme, 2006?
Limitation period for filling of the review application against the award given by the Banking Ombudsman is
What is the maximum amount the Banking Ombudsman can award as compensation?
DRT Act is applicable only if the debt recoverable is __________ or above.
Can a customer, from whose account someone has fraudulently withdrawn money, make a complaint before the Banking Ombudsman?
Can complaints be filed through an advocate as the authorised representative of the complainant?
A bank has allowed a current account holder an ad hoc overdraft of Rs. 15 lakh. That amount is now due. Is this amount recoverable under the provisions of the DRT Act?
Can Reserve Bank and the Central Government forward a complaint to the Banking Ombudsman?
Can the order of Central Government in the appointment of the Presiding Officer of the tribunal be challenged in any Court?
Which of the following is correct about amount to be deposited while appealing before the appellate tribunal?
A voluntary winding up may take place by passing an ordinary resolution in the general meeting if
In a civil suit, to which the bank is not a party, one of the parties has produced certified copy of books of account. One party to the suit wants to call the bank officer as witness to prove the contents of copy. Can it be done?
N purchased a draft from a bank favoring B. The draft is lost in transit and the first bank needs some formalities to be completed by N for a duplicate draft in lieu of the lost draft. Which of the following is correct if B decides to file a consumer case against the formalities as it is causing delay in payment to him?
Who is the Chairman of the Central Consumer Protection Council?
Which of the following conditions is necessary for doctrine of election based on the principle of equity?
Which of the following is/are exception(s) to 'no consideration, no contract'?
A contract in which one party wins and the other loses is called
Which of the following is not a feature of a company?