Prior approval of RBI is required if acquisition together with voting rights exceeds 5% of the paid-up share capital. Acknowledgement by RBI: Banks, when receiving more than 5% of their paid-up capital for transfer to one party must refer to RBI.

Cheque shall be paid, like in other cases, as minors can withdraw the amount. However, minor account holder cannot issue/draw cheque favouring a third party. 

Primary dealer is a firm that buys government securities directly from a government, with the intention of reselling them to others. Thus, it acts as a market maker of government securities. The government may regulate the behaviour and number of its primary dealers and impose conditions of entry.

In RRBs, 50% share shall be held by the central government, 15% by the concerned state government and 35% by the sponsor bank. The RRB Amendment Act 2014 has allowed RRBs to raise their capital from sources other than the central and state governments and sponsor banks. In such a case, the combined shareholding of the central government and the sponsor bank cannot be less than 51%. Further, if the shareholding of the state government in the RRB is reduced below 15%, the central government would need to consult the concerned state government.

Forfaiting is the purchase of a series of credit instruments such as drafts drawn under time, letters of credit, bills of exchange, promissory notes or other freely negotiable instruments on a "non-recourse" basis (non-recourse means that there is no comeback on the exporter if the importer does not pay). The forfaiter deducts interest (in the form of a discount), at an agreed rate for the full credit period covered by the notes.

The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV). Mutual funds invest the money, collected from the investors, in securities market. Net Asset Value is the market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day to day basis. The NAV per unit is the market value of securities of a scheme (from this all expenses are subtracted) divided by the total number of units of the scheme on any particular date.

In recourse factoring, the factor does not take on the risk of bad debts. The factor will be able to reclaim his money from you even if the customer does not pay. The factoring agreement will specify after how many days of the due date, you must refund the advance. 

Excercising the powers conferred by sub-section (1) of Section 11 of the Credit Information Companies (Regulation) Act, 2005, Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest, hereby directs that within three months from the date of this directive: (i) All Credit Institutions (CIs) shall become members of all CICs and submit data (including historical data) to them. Further, CICs and CIs shall keep the credit information collected/maintained by them, updated regularly on a monthly basis or at such shorter intervals as may be mutually agreed upon between the CI and the CIC in terms of Regulation 10 (a) (i) and (ii) of the Credit Information Companies Regulations, 2006. (ii) As a consequence of (i) above, one-time membership fee charged by the CICs, for CIs to become their members, shall not exceed Rs. 10,000 each. The annual fees charged by the CICs to CIs shall not exceed Rs. 5000 each.

Operational risk for foreign exchange in particular involves problems with processing, product pricing and valuation. These problems can result from a variety of causes, including natural disasters, which can cause the loss of a primary trading site or a change in the financial details of the trade or settlement instructions on FX transactions.

A factor performs at least two of the following functions: i. Provides finance for the supplier, including loans and advance payments ii. Maintains accounts and ledgers relating to receivables iii. Collects receivables iv. Protects risk of default in payments by debtors

Credit risk may take the following forms: In the case of direct lending, principal/and or interest amount may not be repaid. In the case of guarantees or letters of credit, funds may not be forthcoming from the constituents upon crystallisation of the liability. In the case of treasury operations, the payment or series of payments due from the counter parties under the respective contracts may not be forthcoming or ceases. In the case of securities trading businesses, funds/securities settlement may not be effected. In the case of cross-border exposure, the availability and free transfer of foreign currency funds may either cease or restrictions may be imposed by the sovereign.

Crossing is a direction to the paying bank to pay the cheque to the payee, through a bank.

Retail banking, also known as consumer banking, is a typical mass-market banking in which individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs). In retail banking, the focus is on the individual consumer. 

The first study of Urban Co-operative Banks was taken up by RBI in the year 1958-59. The Report published in 1961 acknowledged the widespread and financially sound framework of urban co-operative banks; emphasized the need to establish primary urban cooperative banks in new centers and suggested that State Governments lend active support to their development. Banking related functions (viz. licensing, area of operations, interest rates etc.) were to be governed by RBI.

RBI was established in 1935. It was nationalised in 1949. It plays the role of regulator of the banking system in India. The Banking Regulation Act 1949 and the RBI Act 1953 have given RBI the power to regulate the banking system.

Data mining is becoming a strategically important area for many business organisations, including banking sector. It is a process of analysing the data from various perspectives and summarising it into valuable information. Data mining assists the banks to look for hidden patterns in a group and discover unknown relationship in the data. Data mining tools, using large databases, can facilitate automatic prediction of future trends and behaviours and automated discovery of previously unknown patterns.

Bank is not liable if the details filled by the customer are incorrect. However, in the given case, bank is liable for damages as the error is from the side of the bank. So, the bank is responsible irrespective of the individual pointing out the error or not. 

Some of the potential benefits are: i. Access to supplementary services ii. Increased brand awareness iii. Opportunity to reach new markets iv. Access to new customer base v. Achieving synergy and competitive advantage

Consolidation is the joining of several business units or several different companies into a larger organisation. Business consolidation is used to improve operational efficiency by reducing redundant personnel and processes. It is most often associated with mergers and acquisitions. Business consolidation can result in long-term cost savings. In the short-term, it can be expensive and complex.

Participatory notes, commonly known as P-Notes or PNs, are instruments issued by registered Foreign Institutional Investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India (SEBI).

As a part of business, banks issue guarantees on behalf of their customers for various purposes. The guarantees executed by banks comprise both performance guarantees and financial guarantees. The guarantees are structured according to the terms of agreement (security, maturity and purpose).

Factoring may broadly be defined as the relationship, created by an agreement, between the seller of goods/services and a financial institution called the factor, whereby the latter purchases the receivables of the former and also controls and administers the receivables of the former. Since the client’s debts are purchased by the factor and amount is paid to the client, it serves as off-balance sheet finance and appears in the balance sheet only as a contingent liability in the case of recourse factoring. In case of default by the buyer, the client will have to refund the finance amount to the factor. But in case of non-recourse factoring, it does not appear anywhere in the financial statement of the borrower. Thus, factoring services help the client to improve the structure of balance sheet.

RBI was established in 1935. It was nationalised in 1949. It plays the role of regulator of the banking system in India. The Banking Regulation Act, 1949 and the RBI Act, 1953 has given RBI the power to regulate the banking system.

Off-site surveillance particularly focuses on the risk profile of the supervised institution. The Off-site Monitoring and Surveillance System (OSMOS) was introduced in 1995 as an additional tool for supervision of commercial banks to supplement the on-site examinations. The system consists of 12 returns (called DSB returns) that focus on supervisory concerns, such as capital adequacy, asset quality, large credits and concentrations, connected lending, earnings and risk exposures (viz. currency, liquidity and interest rate risks). 

Cash management is the corporate process of collecting and managing cash, as well as using it for (short-term) investing. It is a key component of ensuring a company's financial stability and solvency.

Key person insurance, also called keyman insurance and key man insurance, is an important form of business insurance. There is no legal definition for "key person insurance". In general, it can be described as an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of an important member of the business. To put it simply, keyman insurance is a standard life insurance, TPD insurance or trauma insurance policy, that is used for business succession or business protection purposes.

Under the cash budget method, monthly cash inflow and outflow statements are prepared and the highest gap between the two becomes the basis of sanction of credit limit. Banks make use of cash budget method in case of: (a) Seasonal industries (b) Software development (c) Film production (d) Service sector activities, including construction activities

In view of the amendment carried out to RBI Act, 1934, omitting sub-section (1B) of Section 42, the Reserve Bank does not pay any interest on the CRR balances maintained by SCBs with effect from the fortnight beginning March 31, 2007.

The claimant is eligible to interest on balance lying in current account of the deceased, interest shall be paid at savings bank deposit rate from the date of death of the depositor to the date of payment (settlement of death claim). 

Amount of term deposit of Rs. 1 lakh minus the balance including interest in the overdraft limit of Rs. 0.50 lakh against this term deposit.

3

Customer profitability (CP) is the profit that the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period.

All of the above

In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to

(a) submit a dispute relating to the business of the firm to arbitration

(b) open a bank account on behalf of the firm in his own name

(c) compromise or relinquish any claim or portion of a claim by the firm

(d) withdraw a suit or proceeding filed on behalf of the firm

(e) admit any liability in a suit or proceeding against the firm

(f) acquire immovable property on behalf of the firm

(g) transfer immovable property belonging to the firm

(h) enter into partnership on behalf of the firm

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

For the purpose of KYC policy, a customer is defined as:

a. A person or an entity that maintains an account and/or has a business relationship with the bank

b. One on whose behalf the account is maintained (the beneficial owner)

c. Beneficiaries of transactions that are conducted by professional intermediaries, such as stock brokers, chartered accountants, solicitors etc. as permitted under the law

d. Any person or entity that is connected with a financial transaction which can pose significant reputational or other risks to the bank, such as a wire transfer or issue of a high value demand draft as a single transaction

A broker is a member of a recognised stock exchange, who is permitted to do trading on the screen-based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI. A sub-broker is a person who is registered with SEBI as such and is affiliated to a member of a recognised stock exchange. 

In law, a liquidator is the officer who is appointed when a company goes into winding-up or liquidation and who has responsibility for collecting in all of the assets of the company and settling all claims against the company, before putting the company into dissolution.

9.00%

The account should be opened in the name of the individual with the addition of the words "executor or administrator". Thus, if 'X' has been appointed as an executor, then the addition of executor will be added. Thus, option 3 is the correct answer. 

As per Sec. 13 of “Banking Companies Acquisition and Transfer of Undertakings Act, 1970”, "every corresponding new bank shall observe, except as otherwise required by law, the practices and usages customary among bankers and, in particular, it shall not divulge any information relating to or to the affairs of its constituents except in circumstances in which it is, in accordance with law or practices and usages customary among bankers, necessary or appropriate for the corresponding new bank to divulge such information”. Maintaining secrecy is implied terms of the contract with the customer which bank enters into with the customer at the time of opening an account.

A minor's account can be opened in the guardianship of father or mother. 

3

Under KYC directives, for both cross-border and domestic wire transfers, a bank processing an intermediary element of a chain of wire transfers must ensure that all originator information accompanying a wire transfer is retained with the transfer. Where technical limitations prevent full originator information accompanying a cross-border wire transfer from remaining with a related domestic wire transfer, a record must be kept at least for five years (as required under Prevention of Money Laundering Act, 2002) by the receiving intermediary bank of all the information received from the ordering bank.

Factors that will be taken into account while considering the application for setting up a foreign bank in India are 

a. Economic and political relations between India and the country of incorporation of the foreign bank

b. Financial soundness of the foreign bank

c. Ownership pattern of the foreign bank

d. International and home country ranking of the foreign bank

e. Rating of the foreign bank by international rating agencies

f. International presence of the foreign bank

Letter of Credit is a type of non-funded service. Some of the value added services are

a. Syndication Services Forex Desk

b. Real Time Gross Settlement Money Market Desk

c. Cash Management Services Derivatives Desk

d. Channel Financing Employees Trusts

e. Corporate Salary Accounts Cash Surplus Corporates

f. Reimbursement Account Tax Collection

g. Bankers to Right/Public Issue Online payment of Gujarat VAT 

The targets for banks under priority sector are

a. Agriculture - 18% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

b. Total Priority Sector - 40% of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

c. Micro Enterprises - 7.5% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher to be achieved in a phased manner (7% by March, 2016 and 7.5% by March, 2017).

d. Advances to Weaker Sections - 10% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

Basel II uses a "three pillars" concept

(1) Minimum capital requirements (addressing risk)

(2) Supervisory review

(3) Market discipline

In a special crossing, the name of a banker with or without the words 'not-negotiable' is written on the cheque. Such a cheque is crossed specially to that banker. The effect of special crossing is that the paying banker will pay the amount of the cheque only through the bank named in the cheque.

Capital funds are broadly classified as Tier I and Tier II capital. Elements of Tier II capital will be reckoned as capital funds up to a maximum of 100% of Tier I capital, after making the deductions/adjustments. In other words, Tier II capital cannot exceed Tier I capital.

Disclosure of information on products and services on websites is found to be an effective channel for reaching out to customers and the public at large. Such disclosures increase transparency in operations and also help to create awareness among customers about the products and services offered by banks.  On the basis of the recommendations of the Working Group on Lenders’ Liability Laws constituted by the Government of India, the feasibility of introducing the Fair Practices Code for Lenders was examined in consultation with Government, select banks and financial institutions. The guidelines have since been finalised and banks are advised to adopt the broad guidelines and frame the Fair Practices Code duly approved by their Board of Directors.

Transaction of internet banking excludes withdrawal of cash anywhere in India.

A forged instrument has no existence in the eyes of law. A title which never came into existence cannot be improved even if it passes into the hands of a holder in due course. C forges B’s signature on a promissory note and transfers the same to D who takes it in good faith for value. D gets no title of the note even though he is a holder in due course. However, D can recover the amount from C. 

Market skimming pricing or price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment. 

When a product’s performance is falling short of expectations and continued support is no longer justified, it’s time to pull it out of the marketplace, which is known as product elimination. It is done by adopting harvesting, line-simplification and total-line divestment. 

Banks cannot use the services of village sarpanch as intermediaries in providing financial and banking services.

Introduction is the Stage 1 of product life cycle. Stage 1 is where the product is launched. A product launch is always risky. You never know how the market will receive the product. Characteristics of introductory stages of product life cycle are

a. Higher investment and lesser profits

b. Minimal Competition

c. Company tries to induce acceptance and gains initial distribution

d. Company needs promotions targeted towards customers to increase awareness and demand for the product

e. Company needs promotions targeted towards channel to increase confidence in the product  

Book building is a systematic process of generating, capturing and recording investor demand for shares during an initial public offering (IPO) or other securities during their issuance process in order to support efficient price discovery.

With effect from October 25, 2011, savings bank deposit interest rate stands deregulated. Accordingly, banks are free to determine their savings bank deposit interest rate, subject to the following two conditions:

(a) Each bank will have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit.

(b) For savings bank deposits over Rs. 1 lakh, a bank may provide differential rates of interest, if it so chooses, subject to the condition that banks will not discriminate in the matter of interest paid on such deposits, between one deposit and another of similar amount, accepted on the same date, at any of its offices.

Under Section 5 (b) in the Banking Regulation Act,1949, “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheque, draft, order or otherwise.

Companies Act, BR Act and RBI Act

Section 6(1) in Banking Regulation Act,1949 states that "in addition to the business of banking, a banking company may engage in any one or more of the following forms of businesses. They are the borrowing, raising or taking up of money, the lending or advancing of money either upon or without security, the drawing, making, accepting, discounting, buying, selling, collecting and dealing in bills of exchange, hoondees, promissory notes, cou­pons, drafts, bills of lading, railway receipts, warrants, deben­tures, certificates, scrips and other instruments and securities whether transferable or negotiable or not.

The net working capital formula is calculated by subtracting the current liabilities from the current assets. 

Regional rural banks are estab­lished under Section 3 of the Regional Rural Banks Act, 1976.

Bond is a negotiable certificate evidencing indebtedness, a debt security or IOU, issued by a company, municipality or government agency. A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date. The issuer usually pays the bondholder periodic interest payments over the life of the loan.

Section 85 in the Negotiable Instruments Act, 1881 Cheque payable to order states

1. Where a cheque payable to order purports to be indorsed by or on behalf of the payee, the drawee is discharged by payment in due course.
2. 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 indorsement whether in full or in blank appearing thereon and notwithstanding that any such indorsement purports to restrict or exclude further negotiation.

Section 171 in the Indian Contract Act, 1872, bankers, factors, wharfingers, attorneys of a High Court and policy-brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them. But, no other person has a right to retain, as a security for such balance, goods bailed to them, unless there is an express contract to that effect.

According to Tandon Committee recommendations, 25% of the output value should be freely allowed as working capital for units where norms are not presently applicable. At least four-fifths of this should be provided by the banking sector.

Subordinated debt instruments will be limited to 50% of Tier I capital of the bank. These instruments, together with other components of Tier II capital, should not exceed 100% of Tier I capital.

All are true. 

Direct credit controls in India are of three types:

• It is part of the interest rate structure, i.e. rate on small savings and provident funds are administratively set.

• Banks are required to keep 21.50% of their deposits in the form of government securities.

• Banks are required to lend to the priority sector to the extent of 40% of their advances.

Section 7(1) in the Reserve Bank of India Act, 1934 states that the Central Government may from time to time give such directions to the bank as it may, after consultation with the Governor of the Bank, consider necessary in the public inter­est.

Banks should ensure that any remittance of funds by way of demand draft, mail/telegraphic transfer or any other mode and issue of travellers’ cheques for value of Rs. 50000 and above is effected by debit to the customer’s account or against cheques and not against cash payment. Thus, cash payments according to KYC should be for the amount less than Rs. 50000. 

Both (2) and (3) above are correct and are the rights of the principle. Mr. Shanti Prakash has to honour the contract made by the agent as the principle is always liable for the actions done by the agent. But yes, he can claim the damages from the agent as the agent's responsibility is to obey his principle's orders, but this did not happen in this case.

In case of loan/advance accounts, banker is the creditor and the customer is the debtor. It is because the customer owes money to the banker. The banker can demand the repayment of loan/advance on the due date and the customer has to repay the debt. Here, bank is crediting the amount in Y's account, thus the relationship is of creditor and debtor. 

The conditions of negotiability are (i) The instrument should be freely transferable. An instrument cannot be negotiable unless it is such and in such state that the true owner could transfer by simple delivery or endorsement and delivery. (ii) The person who takes it for value and in good faith is not affected by the defect in the title of the transferor. (iii) Such a person can sue upon the instrument in his own name.

Overseas depository bank is authorised by the issuing company to re-issue global depository receipts against issue of foreign currency convertible bonds or ordinary shares of the issuing company. 

Primary markets are required to meet registration and such other requirements as stipulated by the Securities and Exchange Board of India (SEBI). It includes operations on the stock exchanges, if they undertake any activity regulated by SEBI.

A person of Indian origin (PIO) is a person of Indian origin or ancestry but who is not a citizen of India and is the citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or might have ancestors born in India.

The RBI guidelines on acknowledgement for acquisition or transfer of shares issued on February 3, 2004 will be applicable for any acquisition of shares of 5% and above of the paid-up capital of the private sector bank.

Mandate is an unstamped letter that is signed by a customer, authorising him to operate the account on his behalf. Thus, option 4 is the correct answer. 

The creditors of the firm will be able to realise 75% of their dues from the firm.

The bank accounts shall be opened in the name of trust and shall be operated by either the secretary and executive director or jointly by one or more of the trustees namely for and on behalf of the trust.

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

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.

This master circular aims at consolidating all the instructions/guidelines issued by RBI on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating Financing of Terrorism (CFT)/Obligations of banks under PMLA, 2002.

A trustee holds property for the beneficiary and the profit earned from this property belongs to the beneficiary. If the customer deposits securities or valuables with the banker for safe custody, banker becomes a trustee of his customer. The customer is the beneficiary, so the ownership remains with the customer. Here, the bank is a trustee and the customer is the beneficiary. 

Shared Payment Network System (SPNS) or SWADHAN network of ATMs is to provide 24 hours, 7 days in a week and 365 days in a year, electronic banking service to the customers of different banks. Different banks' customers can use other banks services through SPNS.

A bank is bound by the act of negligence of its staff during the course of employment. Thus, where the bank cashier fails to account for the money deposited with him at the counter, the bank would be liable.

A merchant bank is a company that deals mostly in international finance, business loans for companies and underwriting. These banks are experts in international trade, which makes them specialists in dealing with multinational corporations. A merchant bank may perform some of the same services as an investment bank, but it does not provide regular banking services to the general public. 

Issued under Sec. 226(3) of Income Tax Act, 1961 by an Income Tax Officer.

Even though the order is received in a single name, it attaches balance (pro-rata) in any joint account maintained by such person.

An automated teller machine (ATM) is an electronic banking outlet which allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access most ATMs. 

The banker-customer relationship comes to an end in case of death/insolvency/migration to a foreign country and lunacy of the depositor. Thus, option 4 is the correct answer.

A red herring is a preliminary prospectus that is filed by a company with the Securities and Exchange Commission (SEC), usually in connection with the company's initial public offering. A red herring prospectus contains most of the information pertaining to the company's operations and prospects. It does not include key details of the issue, such as its price and the number of shares offered. 

Sometimes, a bank will only provide credit to a customer if someone else provides a guarantee. If you agree to be a guarantor for a borrower, the bank can require you to pay the borrower’s debts if they default on their repayments. If one has guaranteed a borrower’s debts and the borrower defaults on their lending, the bank can require the one to pay the borrower’s debts. 

Loans to individuals for educational purposes (including vocational courses) up to Rs. 10 lakh, irrespective of the sanctioned amount will be considered as eligible for priority sector.

At any time within six months of his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later, such person may give public notice that he has elected to become or that he has elected not to become a partner in the firm, and such notice shall determine his position regarding the firm.

Funds in the bank which are standing credited to Mr. Trivedi should be attached with the garnishee order. 

Banks are not liable for the transactions done in the working hours, however, in the given case, the transaction was made after working hours and banks are not allowed to do cash related transactions during extended working hours (generally one hour). Thus, in this case bank is liable for the payment made after the business hours.

Nearly all operating systems come with the ability to act as some kind of a server to share resources. You can set up different computers to allow others to use its peripherals, such as printers or CDROM drives and other computers to allow others to read or write to its hard disk, allowing sharing of files, while other computers may allow access to its internet connection. When you allow workstation computers to become servers and share things in this manner, it is called a peer-to-peer network. Peer-to-peer network has networks that have equal status. A typical home network might be done this way.

Section 141 of the NI Act makes the directors, manager, secretary and other officers of the companies liable if the offence is committed because of negligence on their part. The director must be, at the time of commission of offence, in-charge and responsible for the conduct of the business of the company. Section 141 does not make all the directors liable for the offence. 

CIBIL - India's first credit information bureau - has been established to cater to the credit information requirement of the financial sector and serves as an effective mechanism for curbing the growth of Non-Performing Assets (NPAs). It was founded in August, 2000. CIBIL collects and maintains records of an individual's payments pertaining to loans and credit cards. These records are submitted to CIBIL by member banks and credit institutions, on a monthly basis.

If one of the partners has died and the remaining partners want the operations for winding up the business.

Securities Transaction Tax (STT) is a tax that is payable in India on the value of securities (excluding commodities and currency) transacted through a recognised stock exchange. The tax is not applicable on off-market transactions or on commodity or currency transactions.

Telephone banking is a service that is provided by a bank or other financial institutions that enables customers to perform a range of financial transactions over the telephone, without the need to visit a bank branch or automated teller machine. It is provided by banks through bank computers and is based on voice processing.

LAN (Local Area Network) refers to a particular region that is interconnected by multiple computers into computer groups. “A region” refers to the same office, the same building, the same company and the same school, generally within a radius of several kilometres. You can provide different services like document management, application software sharing, printer sharing, scanner sharing, workgroup scheduling, e-mail and fax communications services and other VOIP and unified communication. Thus, option 4 is not true. 

In information technology, a protocol is the special set of rules that end points in a telecommunication connection use when they communicate. Protocols specify interactions between the communicating entities.

Under Section 22 of the Reserve Bank of India Act, RBI has sole right to issue currency notes of various denominations, except one rupee notes. The one rupee note is issued by the Ministry of Finance and it bears the signatures of Finance Secretary, while other notes bear the signature of Governor, RBI. However, RBI is the only source of legal tender money because distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as an agent of the Government.

Bank loans up to a limit of Rs. 5 crore per borrower for building social infrastructure for activities, namely schools, health care facilities, drinking water facilities and sanitation facilities (including loans for construction/refurbishment of toilets and improvement in water facilities in the household), in Tier II to Tier VI centres are eligible for classification under priority sector.

In clearing, through transfer or cash.

Six key distinguishing characteristics of services are (a) Intangibility (b) Inseparability (c) Variability (d) Perishability (e) Heterogeneity (f) Lack of Ownership

Recourse factoring makes up most of the accounts receivable financing industry. Recourse is an understanding between you and your factor that your company must buy back receivables that the factor cannot collect payment on. You, the client, must cover the cost of any invoices your customers do not pay. With a non-recourse account, however, the factor accepts more of the risk of non-payment by your customers.

Under KYC directives, the ordering bank must ensure that qualifying wire transfers contain complete originator information. The bank must also verify and preserve the information at least for a period of five years.

The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid up capital of Rs. 1 lakh. This meant that Rs. 1 lakh worth of money had to be invested in the company by purchasing the company's shares by the shareholders to start business.

"Security receipt" means a receipt or other security that is issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the financial asset involved in securitisation.

If the amount undertaken or ordered to be paid is stated differently in figures and in words, the amount stated in words shall be the amount undertaken or ordered to be paid.

a. Twisted-wire pair - A twisted pair consists of two insulated copper wires.

b. Coaxial cable - Coaxial cable consists of an inner copper conductor that is held in position by circular spacers.

c. Optical fibre - Optical fibre has been a technological breakthrough in communications. It supports data rate of 2 giga bits/sec. Fibre optics provide high quality transmission of signals at very high speeds and are not affected by electromagnetic interference. The transfer of data is through very thin glass or plastic fibres with a beam of light. The light source is the laser beam that is driven by a high-speed high-current driver.

A search good is a product or service with features and characteristics easily evaluated before purchase. It can also be seen and tried by the buyer. 

Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheque, draft, order or otherwise. 

In case of partnership accounts, the personal accounts of the partners can be attached in addition to the account of the firm. But, reverse is not possible. 

Cumulative convertible preference shares are a type of preference shares where the dividend payable on the same accumulates, if not paid. After a specified date, these shares will be converted into equity capital of the company.

Under Section 5(b) of the Banking Regulations Act, 1949, banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawal by cheque, draft, order or otherwise.