According to this concept, the business can ignore the disclosure of insignificant items to ease the work of accounting such as payment for postage stamps worth Rs. 20 may be considered as utilised and there is no need to record any stamps which are not utilised yet from this transaction. Realisation concept advocates for recording the change in the value of an asset only when it is realised. Cost concept states that the assets should be recorded in the books at cost price minus depreciation if any. According to conservatism, the business should not anticipate any profit but provide for all possible losses.

'All of the above' option is true, as all are called financial staements of a company. 

There is no sharing of risk in a contract of sale.

If there is no such contract, delivery and payment are concurrent conditions. However, the contract may provide for advance or deferred payment.

When closing stock is understated, profit is reduced by Rs. 15,500 and opening stock overstated by Rs. 20,500 further reduces the profits by Rs. 20,500. Thus, overall profit is understated by Rs. 36,000.

Any contract opposite to public policy is unlawful contract. Void contracts are those which were otherwise valid but had become void due to certain event. A contract is voidable if it is caused by fraud, coercion etc.

The offer can be rejected anytime before it is accepted. The acceptance is made on 10^th March. B can revoke his acceptance anytime before the letter reaches A, i.e. 14^th March.

When consent is not free, it is voidable at the option of aggrieved party. Void contracts are those which were otherwise valid but had become void due to certain event. If a contract fulfills all conditions, it is a valid contract.

Section 15 in The Indian Contract Act, 1872: ‘Coercion’ is the committing, or threatening to commit, any act forbidden by the Indian Penal Code (45 of 1860) or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. 

Mistake made by both the parties of contract is bilateral, while mistake by one of the parties is unilateral mistake.

(A) 3,245 - 900 - 7,000 = Rs. 4,645 (B) 3,245 + 900 - 7,000 = Rs. 1,855 (C) 3,245 + 900 + 7,000 = Rs. 11,115 (D) The entries are to be recorded from cash book angle. Overdraft balance Rs. 3,245 - 900 + 7,000 = Rs. 9,345 

A combination of growth and income funds, also known as balanced funds, are those that have a mix of goals. They seek to provide investors with current income while still offering the potential for growth.

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by the government. 

In international factoring, there are usually two factors. The export factor looks at financing the exporter and sales administration (presenting invoices at the right time, collecting payments being the key tasks). The import factor is interested in evaluating the buyer, collecting the money on time at the same time ensuring that he is protected against default.

Mutual Funds are regulated by the Securities and Exchange Board of India in India. SEBI has formed “SEBI MF Regulations 1996” to regulate functioning of Mutual Funds. Under this regulation, Mutual Funds are formed as Public Trust under “The Indian Trust Act, 1882”. The trust is created through a document called the trust deed which is executed by the fund sponsor in favour of the trustees. Trustees manage the trust and are responsible to the investors in the Mutual Funds.

Under domestic factoring, normally the seller of goods immediately receives 80% of the bill amount on tendering the bills.

Principal in the account cannot be sent abroad by an NRI from his NRO account. 

Government can take all the above actions for regulation of banks in India.

GDRs are commonly listed on European stock exchanges such as the London Stock Exchange. Both ADRs and GDRs are usually denominated in U.S. dollars, but can also be denominated in euros. 

It is one of the limitations of accounting that though manpower is one of the most important resources, still it does not find any place in the books of accounts.

Minimum average balance requirement in classic plus account is Rs. 1 lac. If average balance falls short of Rs. 1 lac, monthly charges will be levied at that.

Credit risk is defined as the possibility of losses associated with diminution in the credit quality of borrowers or counterparties. In a bank’s portfolio, losses stem from outright default due to inability or unwillingness of a customer or counterparty to meet commitments in relation to lending, trading, settlement and other financial transactions. Alternatively, losses result from reduction in portfolio value arising from actual or perceived deterioration in credit quality. Credit risk emanates from a bank’s dealings with an individual, corporate, bank, financial institution or a sovereign.

Approval of appointment of Chief Executive Officers (CEOs) in India (Section 35B of the BR Act, 1949) is by RBI.

A credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs. The loss may be complete or partial. In an efficient market, higher levels of credit risk will be associated with higher borrowing costs. All the given options talk about the loan and can arise credit risk. Thus, option 4 is the correct answer. 

An alliance is where partners collaborate to reduce costs but sell their product independently, enables its partners to realize the benefits of merging but avoid the problem of strengthening competitors.

Off-balance sheet refers to the items that are effectively assets or liabilities of a company but do not appear on the company's balance sheet.

A depository receipt is a negotiable financial instrument issued by a bank to represent a foreign company's publicly traded securities. With a depository receipt, a custodian bank in the foreign country holds the actual shares, often in the form of an American depository receipt (ADR), which is listed and traded on exchanges based in the United States, or a global depository receipt GDR, which is traded in established non-U.S. markets such as London and Singapore.

Retail banking, also known as Consumer Banking, is the provision of services by a bank to individual consumers, rather than to companies, corporations or other banks. Multiple banking is an arrangement where a borrower avails of finance independently from more than one bank. Thus, there is no contractual relationship between various bankers. 

Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same goods or services.

Notice should be given to the customer when the customer has gone abroad indefinitely. 

Appropriation of Clayton's Rule is in following cases:

1. Death/Insolvency of borrower
2. Death/Retirement/Insolvency of a partner in partnership firm
3. Death of a guarantor of a Cash Credit/Overdraft Account
4. Joint account

Each of the four Ps has its own tools to contribute to the marketing mix:

Product: variety, quality, design, features, brand name, packaging, services Price: list price, discounts, allowance, payment period, credit terms Place: channels, coverage, assortments, locations, inventory, transportation, logistics Promotion: advertising, personal selling, sales promotion, public relations  

Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer’s securities.

In the context of an ATM, a personal identification number (PIN) is a numeric password used to authenticate a user to a system, particularly in association with an ATM card.

Various types of services rendered by the bank: (a) Accept deposits from public (b) Lend or invest the money so collected by way of deposits (d) Allow withdrawals of deposits on demand or by any other means

According to Section 9, “Holder in due course” means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or endorsee thereof, if payable to order, before the amount mentioned in it became payable and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.

The essential qualifications of a “holder in due course” may be summed up as follows:

1. He must be a holder for valuable consideration. All the prerequisites of consideration should be met so as to result in a valuable consideration.
2. That he became the holder of the instrument before its maturity. Thus, the person who takes a negotiable instrument after maturity does not become a holder in due course.
3. That the instrument should be complete and regular on the face of it. Face here includes the back also.
4. The last requirement is that the holder should have received the instrument in “good faith”. There are two methods of ascertaining a person’s good faith, “subjective” and objective”. Thus, option 4 is the correct answer. 

The garnishee order does not apply to the cheques, drafts, bills etc, which have been sent for collection by customer and have been credited. But if the amount of the uncleared cheque is credited, then the garnishee order is applicable. 

NRO accounts may be opened / maintained in the form of current, savings, recurring or fixed deposit accounts. Rate of interest applicable to these accounts and guidelines for opening, operating and maintenance of such accounts shall be in accordance with directives/instructions issued by the Reserve Bank from time to time. The accounts may be held jointly with residents and / or with non-residents.

Banks may, at the discretion of the National Authority, employ 3rd tier of capital consisting of short term subordinate debts for the sole purpose of meeting a proportion of capital requirements for market risks. Tier III capital will be limited to 250% of bank’s Tier I capital (minimum of 28.5%) that is required to support market risks.

(A) Internal Factors:

1. Organisational Factors
2. Marketing Mix
3. Product Differentiation
4. Cost of the Product
5. Objectives of the Firm (B) External Factors:
6. Demand 2. Competition 3. Suppliers 4. Economic Conditions 5. Buyers 6. Government

Term deposits are a type of investment that pays back interest. These are basically a type of savings account where your money is invested for a fixed period of time and you get a fixed rate of interest over that time period. In this, the minimum period is 7 days and the maximum period is 10 years. All the options but 2 talk about the features of the term deposit. Thus, option 2 is the correct answer.

 Both the cheques will be returned because Mr. Ashok Kumar died on December 03, 2012 and the cheque is signed on December 12, 2012. Therefore, it can be a fraud case.

Activities identified as elements of the promotional mix vary, but typically include the following: Advertising Personal Selling Sales Promotion Public Relations Direct Marketing Corporate Image Sponsorship Guerrilla Marketing Product Placement

Capital markets are a broad category of markets facilitating the buying and selling of financial instruments. In particular, there are two categories of financial instruments in which markets are involved. These are equity securities, which are often known as stocks, and debt securities, which are often known as bonds.

According to the amendments of BR Act, 1966, the cooperative banks came under dual control of the RBI and the State Governments.

In the case of advances allowed against equitable/registered mortgage of immovable property, the limitation period for personal decree against a borrower is 3 years. For the sale of mortgaged property, the limitation period is 12 years. In either case, the limitation will start from the date the mortgage money becomes due and payable in terms of loan document/mortgage deed.

Holder in due course - a person who has received a negotiable instrument in good faith and without notice that it is overdue, that there is any prior claim, or that there is a defect in the title of the person who negotiated it. Thus, X would get the title of holder in due course.

Cheque Truncation System (CTS) or Image-based Clearing System (ICS), in India, is a project undertaken by the Reserve Bank of India (RBI) in 2008, for faster clearing of cheques. CTS is based on a cheque truncation or online image-based cheque clearing system where cheque images and magnetic ink character recognition (MICR) data are captured at the collecting bank branch and transmitted electronically.

At times, a large number of shareholders may face the following problems under the present system of payment of dividend by mailing of warrants, through post. a) Loss in transit, b) Fraudulent encashment by third parties, c) Postal delay

To avoid these problems, the Reserve Bank of India has introduced the Electronic Clearing Service (ECS) for payment of dividend/interest etc, which ensures the shareholders timely credit of dividends directly into their Bank Account.

Ceiling for investment by FIIs was increased on 28th Feb, 2001, from 40% to 49% with the approval of the shareholders through a special resolution in the General Body Meeting.

The bill provided certain considerable safeguards to ensure that genuine and honest customers of the bank were not harassed. These safeguards included - that no court shall take cognizance of such offence except on a complaint, in writing made to the payee or the holder in due course of the cheque; that such complaint is made within one month of the date on which the cause of action arises; and that no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any such offence.

Section 89 in The Negotiable Instruments Act, 1881: Where a promissory note, bill of exchange or cheque has been materially altered but does not appear to have been so altered, or where a cheque is presented for payment which does not at the time of presentation appear to be crossed or to have had a crossing which has been obliterated, payment thereof by a person or banker liable to pay and paying the same according to the apparent tenor thereof at the time of payment and otherwise in due course, shall discharge such person or banker from all liability thereon; and such payment shall not be questioned by reason of the instrument having been altered, or the cheque crossed.

Section 85 in The Negotiable Instruments Act, 1881: Where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course. Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by payment in due course to the bearer thereof, notwithstanding any endorsement whether in full or in blank appearing thereon, and notwithstanding that any such endorsement purports to restrict or exclude further negotiation.

The deposit itself is a liability owed by the bank to the depositor, and the word refers to this liability rather than to the actual funds that have been deposited. When someone opens a bank account and makes a cash deposit, he surrenders legal title to the cash, and it becomes an asset of the bank. In turn, the account is a liability to the bank. There are several different types of deposit accounts including current accounts, savings accounts, call deposit accounts, money market accounts and certificates of deposit (CDs).  Deposits to be accepted by the banks can be: demand deposits, deposits of money or articles or from any person who offers money for that purpose. Thus, option 3 is the correct answer.

As a part of the supervisory strategy, an off-site monitoring system for surveillance over banks was operationalized in RBI in March 1996. As a tool for “early warning signals”, the 'Offsite Surveillance and Monitoring System' (OSMOS) plays a key role in identification of risks and monitoring banks on a continuous basis.

The main features of saving account in bank are as follows: -The main objective of saving account is to promote savings.

• There is no restriction on the number and amount of deposits. However, in India, mandatory PAN (Permanent Account Number) details are required to be furnished for doing cash transactions exceeding Rs. 50,000.
• Interest is prescribed by RBI. -Withdrawals are allowed subject to certain restrictions. -The money can be withdrawn either by cheque or withdrawal slip of the respective bank. -The rate of interest payable is very nominal on saving accounts. At present, it is between 4% and 6% p.a. in India. -Saving account is of continuing nature. There is no maximum period of holding. -A minimum amount has to be kept in saving account to keep it functioning.

Option 2 is the correct option as it does not state the truth.

Administrator is a person appointed by the court to manage and take charge of the assets and liabilities of a decedent who has died without making a valid will.

Banks were advised to follow certain customer identification procedure for opening of accounts and monitoring transactions of a suspicious nature for the purpose of reporting it to appropriate authority. Thus, while collecting cheques of large amount, it is mandatory for the banks to keep a check on the transactions (including history of the transactions).

Section 20 in The Reserve Bank of India Act, 1934: Obligation of the Bank to transact Government business — The Bank shall undertake to accept monies for account of the Central Government and to make payments up to the amount standing to the credit of 4 [its account], and to carry out 5, remittance and other banking operations, including the management of the public debt. Section 21A of RBI act talks about bank to transact Government business of States on agreement.

A personal identification number (PIN) is a numeric password used to authenticate a user to a system, particularly in association with an ATM card.

The answer 'refer to drawer' often adopted by bankers would mean anything from shortage of time, to death or insolvency of the drawer and could also include insufficiency of funds. It could include serving of a garnishee order and could be milder form of refusal than 'no funds' or 'no arrangements'. At times it may not really reflect the financial position of the drawer and could only mean 'we are not paying, just ask the drawer why'. Thus, bank is liable to the customer for not having returned the cheques with a proper reason.

A computer network or data network is a telecommunications network which allows computers to exchange data. In computer networks, networked computing devices exchange data with each other using a data link. The connections between nodes are established using either cable media or wireless media. All the given options are correct. 

A modem is an external or internal device whose function is to transmit digital data over communication lines. Traditional modems once used frequently with dial-up networks convert analog data from telephone lines into computer digital data. Broadband modems transfer digital data between two digital devices. However, they do not modulate data into images.

Code of Customer Rights sets minimum standards of banking practices that member banks have to follow while they deal with individual customers. It provides protection to customers and explains how banks are expected to deal with customers in their day-to-day operations. 

The Code has been developed to: a. promote good and fair banking practices by setting minimum standards in our dealings with you; b. increase transparency so that you can have a better understanding of what you can reasonably expect from us; c. encourage market forces, through competition, to achieve higher operating standards; d. promote a fair and cordial relationship between you and your bank; e. foster confidence in the banking system.

On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes. Thus, option 2 is the correct answer. 

Disclosure of accounting policies - AS-1 Valuation of inventories - AS-2 Fixed assets - AS-10 Cash flow statement - AS-3

"Red-herring prospectus" means a prospectus that does not have complete particulars on the price of the securities offered and quantum of securities offered. The red herring statement contains: purpose of the issue; disclosure of any option agreement; underwriter's commissions and discounts; promotion expenses; net proceeds to the issuing company (issuer); balance sheet; earning statements for last 3 years, if available; names and address of all officers, directors, underwriters and stockholders owning 10% or more of the current outstanding stock; copy of the underwriting agreement; legal opinion on the issue; copies of the articles of incorporation of the issuer.

Off balance sheet (OBS) items refer to assets or liabilities that do not appear on a company's balance sheet but are nonetheless effectively assets or liabilities of the company. Footnotes to the financial statements refer to additional information provided in a company's financial statements. Footnotes to the financial statements report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement.

Distribution channels for banking products: (a) Phone banking/call centre (b) Mobile banking (c) Automated teller machinery (d) POS (e) CDM (Cash deposit machines)

The multiplexer, shortened to “MUX” or “MPX”, is a combinational logic circuit designed to switch one of several input lines to a single common output line by the application of a control signal. Multiplexing (or muxing) is a way of sending multiple signals or streams of information over a communications link at the same time in the form of a single, complex signal; the receiver recovers the separate signals, a process called demultiplexing (or demuxing).

Cost of machine = Rs. 2,00,000 Depreciation for 2 years at the rate of 20% p.a. = Rs. 80,000 Thus, present value = Rs. 1,20,000 Market value should be ignored according to realisation concept.

The balance in partner’s account can be utilised by exercising the right of set off sue to his joint and several liabilities.

In case of a particular lien (Section 170 of Indian Contract Act), the creditor gets the right to retain possession only of goods or securities for which the dues have arisen and not for other dues. For example, a watch-repairer can withhold the delivery of watch until his charges of repairing the watch are paid to him.

Many times a banker is in the position of a trustee. A trustee is one who holds property for the benefit of a person or beneficiary. The banker is a trustee when a customer deposits his valuables and securities for safe custody. In this case, the customer continues to be the owner and is entitled to the same goods and valuables as he deposited. The banker cannot use the articles kept for safe custody anyway he likes. He cannot return equivalent goods in place of the original one. Here the legal position of a banker as a trustee is quite different from that of debtor and creditor. For example, in the event of bank's liquidation, securities and valuables held by the bank as trustee are not available for distribution to the general creditors. Fund, if any, coming to the hands of the bank as a trustee must also be applied for specific purpose as the trust deed indicates.

This rule, which was laid down in the famous case Devayanas Vs Noble states the rule of appropriation in running accounts like Cash Credit and Overdraft Accounts. As per this rule, each withdrawal in a cash credit account is considered as a new loan and each deposit as a repayment of the loan in the order in which it is made.

A product is a commodity, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value. In this, goods are tangible. You can see them, feel them, touch them etc. Services are intangible; the result of human or mechanical efforts to people or objects. Thus, option 4 is correct.

TSD instruments with an initial maturity of less than 5 years or with a remaining maturity of one year or less should not be included as part of Tier-II capital.

In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.

When a chairman or managing director is removed from his post, he ceases to be a director and cannot be appointed as director during the next 4 years.

It can be fined up to Rs. 200000 and if offence continues, additional fine could be Rs. 50000.

Bank is always liable to the true owner in case of crossed cheques. 

Lien is a right to keep possession of property belonging to another person until a debt owed by that person is discharged.

Basel II uses a "three pillars" concept – (1) minimum capital requirements (addressing risk), (2) supervisory review and (3) market discipline.

Revolving credit is very similar to a credit card. The lending institution grants you a maximum credit limit, which you can use to make purchases at any time and (usually) on any goods. Many small business owners and corporations use revolving credit to finance capital expansion or as a safeguard in the event of cash flow problems. 

Section 138 of NI Act deals with dishonour of cheque due to insufficiency of funds in the account.

Minimum number of members required to form a private company is 2, whereas a public company requires at least 7 members. Maximum number of members in a private company is restricted to 50, there is no restriction of maximum number of members in a public company. The Companies Act, 1956 prescribed minimum 2 directors for a private and 3 for a public company to constitute a Board. This criterion has been retained by the new Act, but the maximum limit of directors on the Board has now been raised from 12 to 15. Thus, only a is correct.

If the amount is written in words only and NOT in figures, then NO payment will be made because it would be inchoate. This means that a person writes a check with the following: Figures: _________ (Left Blank) Words: Rupees Five Thousand Only No payment would be made (Section 20 NI Act)

A product is a commodity, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value. In this, goods are tangible. You can see them, feel them, touch them etc. Services are intangible. 

The endorsements of the note need not be on the note itself. A note is also endorsed if a separate sheet of paper containing the signature and any words of endorsement is attached to the note, called an allonge.

As per guidelines, all cheques above Rs. 2 lac are to be examined under an ultra-violet lamp at the time of clearing and cheques above Rs. 5 lac will have to undergo checks at multiple points before clearance.

General Provisions and Loss Reserves: Such reserves can be included in Tier II capital if they are not attributable to the actual diminution in value or identifiable potential loss in any specific asset and are available to meet unexpected losses. General provisions and loss reserves will be admitted up to a maximum of 1.25 percent of total risk weighted assets.

Introduction is not essential. It is done in order to have the guarantee of the person.

The institution of Insurance Ombudsman was created by a Government of India Notification dated 11th November, 1998 with the purpose of quick disposal of the grievances of the insured customers and to mitigate their problems involved in redressal of those grievances. 

The banks can sell security charged to it without court intervention under Indian Contract Act, if it is pledged, and under SARFAESI Act, if it is hypothecated or mortgaged.

Export credit up to 32 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, will be eligible as part of priority sector for foreign banks with less than 20 branches. For other banks, the incremental export credit over corresponding date of the preceding year will be reckoned upto 2 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

Correct Answer: a and b only are correct

‘Cheque’ is an instrument which contains an unconditional order, drawn on a banker, directing to pay a certain sum of money to the person whose name is specified in the instrument. ‘Bill of Exchange’ is a document containing an unconditional order, directing a person, to pay a certain amount to a specified person. A cheque is a type of bill of exchange, used for the purpose of making payment to any person.

There are three parties involved in the case: Drawer: The maker or issuer of the cheque. Drawee: The bank which makes payment of the cheque. Payee: The person who gets the payment of the cheque or whose name is mentioned on the cheque.

Computers are getting more sophisticated. They have given banks a potential they could only dream about and have given bank customers high expectations. The changes that new technologies have brought to banking are enormous in their impact on officers, employees, and customers of banks. All the given parts are beneficial for banks. 

A credit card is a payment card issued to users (cardholders) as a method of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them. Thus, a user can spend at the moment and can pay later for the same.

An NRO (Non-Resident Ordinary) savings account is where you can maintain and manage your income earned in India such as rent, dividends, pension etc. It can be jointly held with an Indian resident or NRI. 

According to the given case, the consumer should receive compensation for the upset and inconvenience caused to him by the financial business's mistake.

Restrictions on borrowing power: A public company can borrow only after the receipt of Commencement Certificate. [Section 149(1)]. But a private company can borrow immediately after the incorporation.

The following charges are compulsorily registrable: A charge for the purpose of securing any issue of any debentures A floating charge A charge on uncalled share capital A charge on calls made but not paid A charge on any immovable property A charge on ship A charge on book debts of the company A charge on goodwill or on patent or on license under the patent or on trademark or copyright or on the license under the copyright A charge other than a pledge on any movable property of the company

Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of cash, gold and government approved securities before providing credit to the customers.

A star topology is a topology for a Local Area Network (LAN) in which all nodes are individually connected to a central connection point, like a hub or a switch. A star takes more cable than, e.g. a bus, but the benefit is that if a cable fails, only one node will be brought down.

(b) and (d) options both are correct because the same name will be accepted as written on the cheque issued.

Characteristics of financial services: (1) Customer-specific (2) Intangibility (3) Tendency to perish (4) Inseparability (5) Variability

The CAMELS rating system is a recognized international rating system that bank supervisory authorities use in order to rate financial institutions according to six factors represented by the acronym "CAMELS". Supervisory authorities assign each bank a score on a scale, and a rating of one is considered the best and the rating of five is considered the worst for each factor. The components of a bank's condition that are assessed: (C)apital adequacy (A)ssets (M)anagement Capability (E)arnings (L)iquidity (also called asset liability management) (S)ensitivity (sensitivity to market risk, especially interest rate risk)

When NRIs return with the intention to reside for uncertain period, their accounts will be designated as Resident Accounts. The funds in their NRE and FCNR accounts may be also converted into foreign currency and placed in Resident Foreign Currency (RFC) Accounts.

When referring to a network, a multi-user system is a term commonly used to define a computer capable of allowing multiple users to connect to a network. Thus, large number of users are connected to a central system and data is kept on processing concept. All the given options are the features of multi-user computer network. 

As per Tandon's second method of lending, the borrower has to arrange 25% of current assets/working capital gap as margin. 

Credit card does not belong to product line to other banks.

The Bank should not hold more than 30% of the paid-up capital of the company or 30% of its own paid-up capital, whether as pledgee, mortgagee or absolute owner. 

Any new life insurance company or non-life insurance company will not be registered unless the company has a paid-up equity capital of a minimum Rs. 100 crores. In the case of a re-insurance company, the minimum paid-up equity capital will have to be Rs. 200 crores (Sec 6 of the Insurance Act, 1938).

Deferred Payment Guarantee is a guarantee for a payment which has been deferred or postponed. The necessity to issue deferred payment guarantee arises in case of purchase of capital goods like machinery. Deferred Payment Guarantee is issued by the bank at request of customer when he purchases goods or machinery from a creditor on the terms of payment after a specified time in lump sum or in installments.

No addition, alteration or amendment shall be made to or in the provisions of the Articles of Association for the time being in force, unless the same shall have been previously submitted to and approved by the Registrar. Thus, the Registrar of Companies can be helpful to have a copy of the amended documents. 

"Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof, under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned as in "THE NEGOTIABLE INSTRUMENTS ACT, 1881".

The cheque can be paid in Mumbai as it is payable by a bank in Mumbai.

A bank is supposed to keep your money safe. Yet there are a number of instances of fraudulent withdrawal of money from bank accounts. While in some cases, such fraud takes place with the connivance of the bank staff, in others, the negligence of the bank staff results in clearance of forged cheques. Whatever may be the cause, the law is clear — the bank has to take responsibility for its action in clearing a forged cheque and refund the amount illegally withdrawn from the customer's account.

Section 8 in BANKING REGULATION ACT, 1949: Prohibition of trading — Notwithstanding anything contained in section 6 or in any contract, no banking company shall directly or indirectly deal in the buying or selling or bartering of goods, except in connection with the realisation of security given to or held by it, or engage in any trade, or buy, sell or barter goods for others otherwise than in connection with bills of exchange received for collection or negotiation or with such of its business as is referred to in clause (i) of sub-section (1) of section 6: 42 [Provided that this section shall not apply to any such business as is specified in pursuance of clause (o) of sub-section (1) of section 6.] Explanation — For the purposes of this section, “goods” means every kind of movable property, other than actionable claims, stocks, shares, money, bullion and species, and all instruments referred to in clause (a) of sub-section (1) of section 6.