Legal and Regulatory Aspects of Bank (JAIIB)
Description: Legal and Regulatory Aspects of Bank) | |
Number of Questions: 120 | |
Created by: Gagan Singh | |
Tags: JAIIB Legal and Regulatory Aspects of Bank Constitution Sale of Goods Act Banking Awareness The Sale of Goods Act The Law of Limitation Banking Regulation Public Sector Banks and Cooperative Banks Roles and Functions of Various Regulatory Bodies (RBI, SEBI, IRDA, CIBIL, BSBIC etc.) Regulation of Banking Business Tax Laws Capital and Revenue Expenditure Indian Contract Act SARFAESI |
Which of the following groups is not included in the term 'goods', as per Sale of Goods Act?
A suit is deemed to have been instituted (filed) in a court
Which of the following are essential functions of banks as indicated in Section 5(b) of Banking Regulation Act?
(a) accept deposits and lend or invest such deposits (b) accept deposit and undertake non-fund based business (c) accept deposits and undertake remittance business (d) lend, invest and issue letters of credit
Private Sector Banks are regulated by
(a) Companies Act 1956 (b) Banking Regulation Act 1949 (c) RBI Act 1934 (d) banking Companies (Acquisition & Transfer of Undertakings) Act 1970
Other than the business specified u/s 6 (1) of Banking Regulation Act, a bank can undertake any other business which can be prescribed/decided by
(a) Central Govt. (b) RBI (c) Board of the Bank (d) Ministry of Corporate Affairs
Time required for obtaining a copy of the order or award shall be excluded while computing the limitation period for
Which of the following are regulated by Banking Regulation Act 1949?
(a) Public Sector Banks (b) State Bank Group Banks (c) RRBs (d) Coop Land Mortgage Banks
Who can suspend the operation of banking company and on whose recommendations?
As per Sale of Goods Act, ____ goods mean the goods identified and agreed upon, at the time a contract of sale is made.
In the context of Cooperative Banks, which of the following statements are correct?
(a) Coop bank operating in one State obtains registration under State Coop Societies Act. (b) For coop banks operating in more than one State, Central Govt. appoints Registrar. (c) Coop banks are under purview of BR Act u/s 56. (d) Where coop bank is registered under DICGC Act, RBI can order its winding up.
Before declaring a dividend, a banking company has to reduce from its profits
(a) preliminary or share selling expenses (b) organization expenses (c) brokerage and loss incurred (d) bad debts for which adequate provision has been made
As per Sale of Goods Act, _____ goods are those which are to be manufactured by the seller after making contract of sale.
Which of the following statements are not correct in connection with shareholding in an Indian bank under provision of BR Act?
In case of non-resident persons, which of the following incomes is/are taxable?
RBI can appoint Chairman of a bank
(a) if the office is lying vacant and not filled immediately (b) if in the opinion of RBI, such vacant position is to be against interest of the banking company (c) and such appointment shall be for a maximum period of 5 years (d) and there is provision for re-appointment after the initial period
In the context of capital of a bank,
(a) the authorized capital means the maximum limit of share capital which the bank is authorized to have under its memorandum (b) the amount of share capital which is subscribed and received is called paid up capital (c) the amount of share capital which is issued and paid up is called subscribed capital
Banks are required to deposit the amount of TDS (sale of movable asset), in the govt. account
Under Sale of Goods Act, if the sale is by sample, which of the following implied conditions is not correct?
While issuing a banking license for a foreign bank, RBI, in addition to usual consideration, takes into account
(a) whether the business will be carried by the company in public interest (b) whether the law of the country where the bank originated discriminates against Indian banks (c) whether the company complies with provisions of BR Act, as applicable to foreign companies
Which of the following statements is not correct?
RBI cannot give directions to banks for loans and advances in respect of which of the following?
If a security is in possession of a bank, it can be sold by the bank
Which of the following regarding return of service tax is/are correct?
Banks are required to transfer a part of their profits to a Reserve Fund
(a) u/s 17-1 of B R Act (b) and the amount is to be 20% of such profits (c) after payment of dividend (d) and commercial banks operating in India should transfer not less than 25 per cent of the ‘net profit’
A banking company can amalgamate with another banking company of its own, called ______ amalgamation. Central Govt. can also order amalgamation of two banking companies u/s 396 of ____, in consultation with ____.
As per Sale of Goods Act, the ______ of the seller is terminated when the buyer gets possession of the goods.
A Lok Adalt has jurisdiction
Which of the following provisions of SARFAESI Act were amended in the year 2004 after the judgement of Supreme Court in Mardia Chemicals vs Union of India and others?
Central Govt. can make rules for preservation of records/books u/s ______ of BR Act. RBI can make rules u/s ______ of BR Act and banks can return the paid instruments to customers u/s ________ of BR Act.
Which of the following pairs does not match?
Under provision of SBI Act, 1955, SBI is managed by
(a) Board consisting of Chairman, Vice Chairman, maximum two Mg. Directors etc. (b) Chairman and Mg. Director are appointed for a period not exceeding 5 years (c) Local Boards are set up where the bank has Local HO (d) Local Boards consists of Chairman and other elected and nominated members
A bank has made payment across the counter, of a cheque issued as a crossed cheque and the holder claims damages from the bank. Under such circumstances, the bank is liable
Under provisions of SARFAESI Act, the security receipt evidences
A bank makes payment of two cheques on which, later it is found that the signatures of the drawer are forged. The first account is that of a company and the 2nd account is a joint account in which signatures of one of the account holders are real.
Under FEMA, the term authorized person means
Right to information available to Indian citizens under RTI Act 2005 does not include which of the following rights?
The Board of Directors of a company cannot pass a valid resolution unless it is passed in a meeting in respect of which of the following?
Under RTI Act 2005, information can be obtained by
Banks can issue notice for enforcement of security interest under SARFAESI Act when
In a limited liability partnership, the rights and obligations of the partners are as per
Which of the following characteristics of a company is not true?
A trust is governed by
(a) Trust Act 1882, if it is a private trust (b) Public Trust Act, if it is a public trust (c) Waqf Act if it is a Muslim trust
If information does not relate his organization, the Central Assistant public information officer has to forward the request for information to the concerned public authority within
In pledge, the possession of goods is with the creditor (pawnee) which can be
(a) actual – where the goods are actually in possession with the creditor (b) symbolic – where the pawnor hands over the control of the goods to the pawnee without actual delivery (c) trust receipt – where the goods are released to the pawnor without payment, by the pawnee on the basis of an undertaking
If a banking company fails to ensure compliance of obligations under Prevention of Money Laundering Act 2002, the director can impose a fine of
If a person commits offence under Prevention of Money Laundering Act, 2002, he shall be liable for fine
Which of the following is the most appropriate difference between a deferred payment guarantee and a term loan?
The mortgage in which the mortgager transfers the possession to the mortgagee is called ______. In such mortgage, (there is)/(there is no), personal liability of the mortgager.
Which of the following statements is correct?
Under FEMA 1999, there is provision of appeal. The first such appeal can be made to
A public company may be a company limited by
(a) shares (b) guarantee (c) both guarantee and share capital
A mortgage when created through an instrument in writing (called mortgage deed) is required to be registered with _____ within _____ months, if the value of mortgage money is Rs.______.
A bank issued an LC, which is to expire on around June 30. Its expiry date falls on
The offences that are compoundable under any law, cannot be brought within the purview of which of the following?
Which of the following parties in a bill of exchange do not match?
Which of these features of limited liability partnership is not correct as per LLP Act 2008?
A guarantee which is issued by a bank, guaranteeing the timely payment of installment to the supplier, by the applicant (borrower), for the machinery purchased on a long term credit from the supplier, is called
A person residing in India
Which of the following statements is not correct in the context of sale of goods?
In case of mortgage, (a) the limitation period against the mortgager for personal liability is _____ years (b) against the mortgaged property, it is ______ years and (c) for foreclosure, it is _____ years.
Which of the following documents are of title to goods?
(a) bill of lading (b) warehouse receipt (c) delivery order (d) airway bill
In case of creation of equitable mortgage, the property which is to be equitably mortgaged, must be located in
(a) A mortgage deed is a document in which the mortgagor transfers an interest in real estate to a mortgagee. (b) Debentures provide voting rights to the holders of the debentures in general meetings. (c) Assignee of the life policy can not sue in his own name. (d) Borrowers can pledge the documents of title to goods.
Which of the following is not a capital account transaction?
The term ‘security interest’ does not include which of the following, as far as SARFAESI Act is concerned?
In the process of securitization of NPA accounts, the qualified institutional buyers are eligible to purchase security receipts issued by the secuiritisation company. QIB does not include
Compared to a public company, a private limited company is at a disadvantage because
(a) it cannot invite public to subscribe to its shares (b) it has to observe restrictions on transfer of its shares because the number of members is limited (c) it has limited growth due to less shareholders (d) it cannot obtain loan from a bank
Which of the following has the authority under SARFAESI Act to prescribe income recognition, accounting standards, and provisioning norms for Securitisation or Reconstruction Companies?
What is the function of the public key out of the pair of keys used in an electronic signature?
When sake of security is made by the creditor under SARFAESI Act, the sale proceeds are to be utilized
(a) first towards costs incidental to preservation and protection of security (b) for dues of the secured creditor (c) surplus to person entitled thereto in accordance with the rights and interests
In a securitization transaction, which of the following documents are required?
(a) offer document (b) debenture (c) agreement (d) security receipt (e) discharge certificate by the NPA selling bank
After receipt of notice of possession from the bank, if the borrower transfers, other than in normal course of business, any of his assets without consent of the bank, what is the punishment under SARFAESI Act?
When a request for information is rejected by Public Information Officer under Right to Information Act, he is not required to communicate to the requester
The provisions of SARFAESI Act are applicable in which of the following transactions?
As per Rules under Prevention of Money Laundering Act 2002, the banks are not required to obtain which the following documents while opening an account of a company?
Under provisions of Right to Information Act, where the information is supplied by a 3rd party and is treated as confidential by that 3rd party and this information is sought by any person, the Public Information Officer shall give a notice within ____ from date of receipt of such request, to such 3rd party about his intention to disclose the information.
The Tribunal is a quasi-judicial body and the selected candidates are appointed on tenure basis, i.e. for a period of ______ from the date they enter upon the office of the Tribunal or till they attain the age of_________, whichever is earlier.
A complaint that is made to Ombudsman should not relate to an issue
(a) already settled by the Ombudsman (b) pending with a court (c) already decided by a court (d) where limitation period has expired
When suit is filed by the bank with DRT, DRT summons the defendant requiring him to show cause within ______ days from _____ as to why the relief prayed for by the bank, should not be granted.
In which of the following mortgages is the property is transferred by the mortgage absolutely with a condition for retransfer by the mortgagee?
When the borrower wants to file an appeal against order of DRT, which of the following is not correct?
Which among the following is a correct statement?
When a bank is to send a certified copy of bank records to a court, the bank is to give a certificate that should contain all of the following, except that
Bank B has received a notice from Recovery Officer of DRT attaching the balance lying in current account of XYZ Pvt. Ltd.
The lease for agricultural and manufacturing purposes is deemed to be a lease from year to year and it can be terminated by giving ______ notice.
Which of these functions of public and private keys is correct?
An agreement that cannot be enforceable by law is called
Distt. Forum is headed by a person who is or has been qualified to be a _____ Judge. The other ____ members of not less than _____.
In the execution of mortgage decree, the decree holder can bring the mortgaged properties to sale
A contract is valid only when there is valid consideration, but in case of contract of guarantee, no consideration passes between the bank and the guarantee. The contract is still valid because
X sold certain goods to Y for which he is yet to be paid. As long as the payment is not made by Y,
(a) X has lien on the goods for the price of the goods the possession of which is with X (b) if Y becomes insolvent, X has to stop the goods in transit if X has parted with the possession (c) X has right of re-sale if goods are in the possession of X
Which of the following is true?
As a part of corporate governance, the concept of ‘fit and proper’ relates to which of the following aspects?
Under Sale of Goods Act, the term ‘caveat emptor’ means
A partnership is a contract with all of the following features, except that the
X, the natural guardian of M, the minor, wants to mortgage the property in the name of M to secure a loan for the benefit of the minor.
A contract without ________ is void.
The provisions in respect of enhancing the borrowing powers of the Board of a public limited company or subsidiary of a public limited company, by the shareholders, are given in section _____ of the Companies Act 2013.
As per SEBI guidelines, the minimum percentage of independent directors out of total, should be ______ of a _______.
A guarantee which extends to a series of transactions is known as a __________ guarantee.
Tax assessed by AO shall be paid within ________ days.
_________ means voluntary transfer of possession from one person to another.
If the stipulation agreed to between the parties is essential to the main purpose of the contract, then such a stipulation is known as a/an ___________.
If the sale of goods is by __________, there is an implied condition that the goods shall correspond with the description.
Your branch is approached by a public limited company to open a current account in their name. For the purpose of opening the account, they submit the Memorandum and Articles of Association and other papers along with a resolution passed by the Board of the company in a duly held meeting. It is observed from the Articles of Association that the Board of the company should have five directors for the purpose of business decisions, but the resolution has been passed by 4 directors, as the 5th one is away to UK in connection with a business trip.
The usual form of contract of agency is by way of a/an _____________.
In a government company, the government holds at least __________ per cent of the paid-up capital.
When the ________ is in possession of goods, a lien can be exercised.
The maximum number of directors in a public company can be _________.
The minimum number of members required in a public company is __________.
In a public limited company, state the maximum and minimum numbers of shareholders.
The Sale of Goods Act was enacted on
Additional directors are appointed by the _________.
There are ______ parties in a contract of indemnity.
Which among the following is a necessary condition for declaring it a company as a Govt. company under the provisions of Companies Act 1956?
Casual vacancies in the board of directors are filled in by the _________.
A private company should have a minimum paid-up capital or Rupees _________.
Every public limited company must have a managing director or whole time director, where paid up share capital is
There is regular trade between two parties through letter of credit but they want that it may not be required to open a letter of credit again and again. What type of LC is suitable for them?
Which of the following documents is called charter of the company?