Tuesday, November 20, 2012

BANK PROMOTION EXAMINATIONS - RRE 005




RAPID READING  EXERCISE – PART:: 05

01. An NPA has been purchased by a bank from another bank. What will be the risk weight for the purchasing bank for this account – 100%
02. For making reference under CDR II, consent of banks or financial institutions is required. What is the rule in this regard ? Consent of 75% of lenders by value and 60% by number is required
03. Hypothecation which creates equitable charge has been defined in – Sarfaesi Act
04.  RTGS takes care of which types of risks: Systemic and settlement risks
05.  A bank can sell its NPA account to another bank only after keeping the same as NPA in the books of the selling bank for atleast 24 months
06. When only the image of the cheque is sent to the paying bank while sending the cheque for collection instead of sending the physical cheque, the process is called – Cheque truncation
07.  What is the maximum amount of loan, other than Housing loan to SC/ST that can be granted to DRI beneficiary: Rs. 15000.00
08. A cheque  partly written in English and partly in Regional language is presented for payment. What should the bank do ? If the language is regional language of the area and if cheque is otherwise in order, it can be paid
09. Money deposited after receiving order may be attached in the case of – Attachment order
10. Original and duplicate draft presented simultaneously for payment – duplicate should be paid and original should be returned
11. Maximum time within which reply must be given under Right to Information Act: – 30 days
12.  A cheque signed by the agent is presented for payment after his death. .What should the bank do ? – The cheque will be paid if it is otherwise in order
13.  Photographs in accounts are to be taken as per recommendations of which committee: Ghosh committee
14.  What is the target for SC/ST under DRI – 40%
15. Selling rate of currency is higher than traveller cheque because – Holding cost of currency is high
16. A minor was given a loan. On attaining majority, he acknowledges having taken loan and promises to pay. Whether the loan can be recovered? – He cannot ratify the contract. Hence recovery is not possible.
17. RBI issues fresh notes in place of defective notes in bundle and are called as Star Series Notes
18. Directors powers are mentioned in – Articles of association
19. A loan was sanctioned against a vacant land. Subsequently a house was constructed at the site. What security is available now? – Both
20. A and B jointly are liable for debt. When the limitation period is approaching, A acknowledges the debt while B was away from India. Limitation expires before B comes to India and after coming, he denies acknowledging the debt. On whom the bank can proceed for recovery of the loan as per limitation act – Both
21.  On repayment of debt of a company, satisfaction of charge should be filed with Registrar of Companies with in what period – 30 days
22. A person returned from foreign trip has to surrender the foreign currency within – 180 days
23. A loan was given on hypothecation of stock to Mr X. What has to be done ? – The dues will be adjusted
24. Club account – Cheque was signed by the secretary and he died. Whether it is payable ? – it will be paid if it is not dated subsequent to date of death
25.  Company is in liquidation. Funds are at the hands of – Liquidator
26. Sub Prime Crisis means – Problem created by lending to borrowers not meeting the credit rating criteria
27. The bill is dated: 15.03.2005 and the date of acceptance is 20.03.2005. The bill was returned unpaid on 25.03.2005. The limitation period will be available upto 25.03. 2008
28. Under hypothecation, the possession and ownership remains with – both with the borrower
29. A lady has taken a demand loan against FD and comes to the branch and wants to add the name of her minor son as joint accountholder. What has to be done ? – After closure of loan only we can add the name
30. Discontinuation of service area approach is as per recommendations of – Vyas committee
31. Revival of limitation for recovery of a time barred loan is possible by – Obtaining fresh promise to pay under provisions of Indian Contract Act
32.  Other than a bill of exchange or promissory note, the document coming from abroad is required to be stamped within – three months
33. Administrator is appointed in the case of – where the deceased has left assets for legal heirs and there is no will
34. A company has registered office at Mumbai, loan granted at Bangalore, property situated at Delhi. EMT can be created at – Mumbai, Bangalore or Delhi if these are notified centers by respective State Governments
35. A having savings bank account with you deposited Rs. 25000.00 A public prosecutor sent notice to the bank informing that Mr A is involved in forgery and requested not to permit withdrawal in the account. In between, one cheque for Rs. 20000.00 is presented for payment. What will  you do ? – Pay the cheque as Public Prosecutor is not authorized to freeze the account
36.  There is a savings bank account in the name of A and B. They have given power of attorney to C for operation in the account. The cheque signed by C is presented in the bank after the death of B – Cheque will not be paid
37. An appeal (under Sarfaesi) against an order of DRT can be preferred by the debtor by depositing – 50% of the amount which can be reduced to 25% by DRAT
38. Through Reverse Repo – RBI squeezes liquidity in the system by sale of Government Securities
39.  Factoring refers to – Purchase and management of receivables
40.  A facility was  granted to B on guarantee of A. At the time of giving guarantee, account was overdrawn, which was not known to the guarantor. Later on the account turned out to be bad. Guarantor is liable
41. Reservation for women under SGSY – 40%
42. No writings on currency notes – directions issued by RBI under Section 35A of BR act
43.  Garnishee order is not applicable on – Unused cash credit or overdraft limit
44.  A cheque is written in different hand writings and in different inks. It will be paid
45. Appeal against the award of Ombudsman can be made by the bank within – 30 days of receipt of acceptance from the customer
46. In case of dishonour of a cheque due to insufficient funds, for enforcing rights under section 138 of the Negotiable Instruments Act, the holder should send a notice to the drawer within – 30 days from the date of receipt of notice regarding dishonour of the instrument
47. The police seeks information regarding conduct of an account being maintained in your branch in connection with some investigation. Can the bank pass on the information ? – Yes. If the information is asked by an official of the bank  in charge of Police Station or above and in writing
48. Who can not be a partner in a partnership firm ? – A Hindu undivided family
49. The limitation period will start from the last date i.e. when the document was executed by the last partner
50.  Who is the appellate authority for making appeal against the decision of a Banking  Ombudsman in India  ? – Deputy Governor, Reserve Bank of India.
51. A and B have a locker with the bank which can be operated by either or survivor. A reported loss of key. Next day B comes to operate the locker. Whether operation will be allowed  ? – No
52.  What is the status of the nominee ? – Trustee of legal heirs
53.  Star series notes relates to – replacement of defective notes which were wrongly printed
54.  If a cheque written in different inks is presented for payment, what should the bank do ? - The cheque can be paid if it is otherwise in order
55. A cheque in which the word – “Hyderabad” written between two parallel lines is presented for payment in clearing in Delhi. Can this cheque be paid in Delhi ? Yes. Since this is general crossing and place mentioned in parallel lines makes no sense
56. The complainant can make appeal against the award of Ombudsman within – 30 days of the receipt of the copy of award
57. A crossed cheque has been presented by the collecting banker on the counter for cash payment. Whether cash payment is permitted ? Yes. Bank can pay the cheque as the requirement is that the crossed cheque should be paid through a bank
58. In case of wrongful dishonour of the cheque, the bank will be liable to – drawer of the cheque
59. A cheque for Rs. 6000/- was presented for payment. The balance in the account was Rs. 5000/- in the account. After enquiry from the counter clerk, the presenter deposited Rs. 1000/- in the account and the cheque was paid. The customer claims the amount from the bank. What will be the bank’s position ? The bank is liable for disclosing secrecy of a customer’s account
60.  RTGS has been started to minimize settlement and systemic risks
61.  CRR has been defined in Section 42(1) of the RBI act
62. In the context of collection of cheques, conversion means crediting the amount of the cheque to the account of the person who is not entitled to it
63. Who can stop payment of the draft ? – None
64. Banks can not issue demand draft payable to bearer, under which act ? – No impact as provisions relating to crossing are not applicable to bill of exchange
65. If a borrower is not satisfied with the reply of the bank to the representation regarding action taken by the bank under SARFAESI act, he can make a representation to DRT without depositing any amount. However, if he wants to appear against the decision of DRT, he is required to deposit minimum 50%
66.  What is the relationship between the banker and judgment debtor against whose accounts garnishee order is received  ?– Debtor-creditor
67.  When a LIC policy will acquire surrender value ? – after three years of running
68.  When a borrower claims his mortgaged property after repayment of loan, the right is called – Right of redemption
69.  A wants his account operated by B but only after his death. The account to be operated in the form of – former or survivor
70. What percentage of profit is transferred to statutory reserves by banks before declaring dividend and bonus- 25%
71. The period for which notice is to be issued to the borrower under SARFAESI act – 60 days
72.  The effect of increasing CRR by RBI is – controlling liquidity
73.  On what rate, the RBI rediscounts the bills discounted by banks ? – Bank Rate
74. RBI has recently permitted Door Step Banking Services under which act? – Banking regulation act
75.  Islamic banking means – accepting and lending without interest
76.  Forged draft received for payment. Which bank will inform the police ?-  Paying banker
77. Trustee came to the bank for loan against fixed deposit to meet the urgent needs of the trust. But the trust deed is slient about loan against FD. Can we give loan ? – No
78.  Frauds of above Rs. 1 crore is to be reported to (where there is no staff involvement) – CBIEconomic offence wing
79. Customer is not ready to sign on the back of the cheque. How to proceed ? – Obtain stamped receipt
80. Drawer arrested – Public prosecutor requests for stop payment. Will you oblige. No. We will pay the cheque
81.  Revenue stamp on receipt is to be affixed for cash payment.  More than Rs. 5000.00
82.  Guarantor pays the dues of the borrower. He is entitled to rights of creditor. This right is called – Right of subrogation
83.  Under section 138 of Negotiable Instruments Act, what is the maximum punishment ?. Double the amount of cheque or imprisonment or two years or both
84.   Under Right to Information act, the information has to be furnished within – 30 days
85.  The difference  between interest earned by a bank and interest expense of the bank is called – Net Interest margin
86. The consequence of Non registration of partnership is – it cannot sue others for recovery of its dues
87.  An account was opened on 01.12.2007 and cheque book was issued on 10.12.2007. Two cheques dated: 07.12.2007 and 18.11.2007 were presented for payment on 15.12.2007. What should the bank do ? – Both cheques will be paid if thery are otherwise in order
88. There is an account in the name of A. A post dated cheque was paid in clearing by mistake and as a result another cheque was dishonoured due to insufficient funds. What is the liability of the bank ?. Bank cannot debit the post dated cheque before the date of the cheque and would be liable to drawer and (not payee) for wronglful dishonour of cheque
89. A executed a power of attorney in favour of B. The bank has received information about the death of A – the principal. A cheque signed by Mr. B which is dated prior to the death of A has been presented for payment. What should the bank do ? The bank will not pay the cheque as the authority comes to an end with the death of principal
90.  In an account a cheque with forged signatures was passed because the forgery was done in such a way that the same could not detected despite best efforts. Thereafter, the bank had sent the statement of the account to the customer who did not object the debit. Later on he contests the debit. Under the circumstances, what is the liability of the bank ? – The bank shall be liable as a cheque with forged signatures is nullity in law
91. What is the responsibility of legal heirs for the debts ?  - They are liable to the extent of assets inherited by them
92. If a depositor other than Senior citizen desires that TDS should not be deducted from interest payable on term deposit, he will be required to submit a declaration on – Form 15G
93. A minor can be granted loan for – necessities  of life as per his status
94. A bill of lading is treated as stale if it is not presented to the negotiating bank within 21 days from the date of its issue
95.  Inspection of banks by RBI is done under Section – 35 of Banking Regulation act 1949
96. In the call money market, lending and borrowing is done for – overnight
97. In which type of accounts nomination facility is not permitted ? – Safe custody accounts in the name of more than one person
98. The limitation for TOD is – three years from the date of loan
99.  Hypothecation has been defined in – Section 2 of SARFAESI act 2002
100.As per KYC guidelines of RBI -  ration card is not treated as proof of identify of an accountholder
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