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Tuesday, November 20, 2012

BANK PROMOTION EXAMINATIONS - RRE 009




RAPID READING  EXERCISE – PART:: 09

01.  Under Section 125 of the Companies Act, the filing of particulars for getting a charge registered with Registrar of Companies for certain transactions, is the responsibility of – borrowing company
02. Popular Bank receives a cheque with account payee crossing and special crossing in favour of Model Bank. The cashier of the Model Bank presents this cheque for cash payment to the Popular Bank – Cheque is being presented by a bank and hence it can be paid in cash
03.  Your bank sanctioned a loan of Rs. 2.00 lakhs against the security of national savings certificates in favour of a person called – X, who has expired recently in a road accident – The payment of National Savings Certificates will be obtained by the bank
04.  For financing a pumpset, which of the following standards will be taken into account ? – Bureau of Indian Standards
05. Model Bank issued a fixed deposit in the name of Mr X and his wife  Mrs. Y. Mrs Y comes to the bank and  requests for premature payment to meet the expenses on treatment of Mr X who is admitted in a hospital and cannot sign, because of a fracture in his hands – payment can be made after verifying the facts and after obtaining the thumb impression of Mr. X presently in the hospital duly  witnessed by the attending doctor
06.  Mr X and Mr Y are having a joint account in which they have nominated Mr A. On the death of Mr. X, Mr A approaches the bank for payment – being nominee, payment would be made to A and to Y and legal heirs of X
07. Popular Bank has issued a term deposit receipt in the name of Mr A and Mr B to be operated as former or survivor. A approaches the bank for addition of name of Mr Y , his son and also nominate Mr Z, his brother in law. He claims that the money belongs to him – without the consent of Mr B, addition or nomination cannot be accepted
08. Which of the following cannot enter into a valid contract ? – a minor (In the case of  illiterate or blind,  if major, they can)
09. Preservation of bank records is mandatory under which act ? – Banking Regulation act-1949
10. Banks are required to submit to RBI a statement of unclaimed deposits. What is the time period for considering a deposit as unclaimed deposit ? – the deposit which is not operated for ten years
11.  As per Central Vigilance Commission guidelines, CVC has jurisdiction over which category of the following ? – Senior Management Grade V and above
12. Which of the following is true with regard to creation of equitable mortgage ? – It can be created at centres notified by the State Government only.
13. Who had launched RIDF scheme ? – Government of India
14.  Tarapore Committee recommendations are associated with which of the following ? – Capital Account Convertibility
15.  What is the maximum amount up to which the award can be given by the Banking Ombudsman ? – Rs. 10.00 lakhs
16.  The capacity in which the Banking Ombudsman functions in respect of dispute among two banks is known as that of – Arbitrator
17. A person not having a PAN and not liable to pay income tax is required to make a declaration on which of the following – Form No: 60
18. Lending for a public company is restricted as per Section 293(d) (i) – Paid up capital and free reserves
19. Upto what extent no collateral security is required to be obtained by the banks, for sanction of education loan – Rs. 7.50 lakhs
20.  What is the full form of the term – O B U ? – Off-shore Banking Units
21. Ghosh Committee is associated with which of the following aspects of banking ?– Bank frauds, Concurrent audit system and Photograph in deposit accounts
22. What is the minimum maturity period for which commercial paper can be issued ? – 7 days
23. Section 31 of RBI act covers which of the following aspect of financial sector ? – Restricts issue of bills of exchange payable on demand to bearer by any person other than RBI and Central Government
24.  Negotiated Dealing System relates to which of the following aspect of financial sectors ? – Submission of bids for participation in government securities
25. Real Time Gross Settlement is connected with which of the following ? – Centralised payment system being run by RBI
26.  What is the full form of CIBIL ? – Credit Information Bureau of India Limited.
27. By an exporter, which of the following kinds letters of credit are given preferences ? – Irrevocable without recourse confirmed.
28. The term – FEDAI stands for which of the following ? – Foreign Exchange Dealers Association of India
29. XYZ Limited, a joint stock company has been under voluntary liquidation on the basis of resolution passed by the shareholders of the company – Its assets would be in possession of the Official Liquidator
30. Mrs Lakshmi, running a chemist shop is maintaining a current account as proprietor, in the name of M/s Lakshmi Medicos for the last five years. She wants to nominate her minor son aged six years to this account – If the name of the person who would obtain payment on behalf of the minor is also indicated, the nomination can be accepted
31. Mr Z has been availing a housing loan of Rs. 10.00 lakhs from your branch which has been showing some irregularity due to irregular payment being made by the borrower. You have come to know that he is having a current account in the name of his proprietorship firm at another branch of the bank in another town – bank can exercise right of set off
32. A private limited company-ABC Private Limited wants to open a current account with your branch. Which of the following are not required to be obtained from the company ? – Introduction as required under KYC guidelines
33.  FCNR (B) – Foreign Currency Non Resident (Bank) accounts
34. SARFAESI – Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
35. A power of attorney holder of a locker holder approaches for surrender of the locker – As per the power of attorney, he has the  powers to operate the locker only and not to terminate the contract
36. Cheque signed by the agent, who has expired, is presented for payment – Payment would be made
37. Willful loan defaulter – Report to be sent to CIBIL for the loan accounts of Rs. 25.00 lakhs and above
38. Willful loan defaulter – Report to be sent to RBI for loan accounts of Rs. 25.00 lakhs and above
39. Vehicle financed to partnership firm. How registration would be done ? – In the name of the firm with the name of the bank as hypothecatee
40. Protection in case of material alteration available to the bank – Under section 89 of Negotiable Instruments act
41. Which act defines mortgage ? – Transfer of property act-1882
42.  Right of set-off is available to the bank due to – Contractual binding
43.  When a cheque is endorsed in blank – effect is that it becomes payable to the bearer
44. In a joint account of A and B, if B expires, payment to be made to – A and legal heirs of B, if survivorship clause is not there
45. A cheque crossed not negotiable – It can be transferred but no one can become holder in due course for such cheque
46. Executor of a will or administrator would sign the bank account opening form as – X, the executor/administrator for the deceased A
47. Protection to collecting bank for a cheque is available – Under section 131 of Negotiable Instruments Act
48. Illiterate wants to give mandate to someone to operate the account – It can be permitted with properly witnessed mandate
49. In a HUF, whether Karta can appoint agent ? – Yes, he has the  absolute authority for conducting the affairs of the HUF business
50.  Stop payment instruction received from a Coparcener for a cheque issued by the Karta – Bank will not accept
51. Cheques received in clearing for payment from an account – Garnishee order will be applicable on the amount of cheque, if returning time is still available
52. Usance bill of exchange – Time available to drawee for acceptance – 48 hours after presentment
53. Overseas Banking Unit branch for the limited purpose is treated as–  a foreign branch of the bank
54. RIDF is operationalised by – NABARD
55. Committee associated with computerization and mechanization – Rangarajan committee
56. Maximum Limit for General Credit Card – basic limit of Rs. 25000.00
57.  Credit Guarantee Fund – Maximum cover amount – Rs. 18.75 lakhs
58. Special Crossing – Payment can be made to the bank in whose favour the crossing is – if  the endorsements are in favour of two banks, payment to the bank functioning as agent
59. FAS stands for – Free Alongside Ship (an Inco Term)
60. Crystalisation of liability of importer within – 10 days
61. Sale and purchase of securities on behalf of a customer – Relationship – bank agent
62. Priority of charge in case of a company, when registered on the same date – The bank whose documents have been signed first
63. Stop payment instruction given by the latter (2nd named) in case of former/survivor account – bank would not accept
64. Power of attorney or mandate in favour of a minor for locker operation – will be permitted
65.  Admission of new partner in a partnership firm – consent of all partners required
66.  Guarantee has been defined in – Indian Contract Act-1872
67.  Nomination provisions have been provided in – Banking Regulation act
68.  Committee on Monetary Aggregates – Y B Reddy
69.  Minor aged 15 years presents a cheque for payment – Payment can be allowed by obtaining signatures on the backside of the instrument – No endorsement is needed
70. Nostro Account – An account of a bank branch in India with the branch of a foreign bank outside India
71.  Priority Sector advances target for foreign banks – 32% of Net bank credit
72.  Range of SLR is between 25-40% as per Banking Regulation act
73. Who fixes the agriculture produce support price ? – Recommended by Bureau of Agriculture costs and prices
74.  Poverty line is based on nutritional requirement
75.  In case of nomination case, no person other than the nominee to be entertained as per Section 45ZB of Banking Regulation act, unless there is a court order
76.  RBI rating is based on CAMELS rating system under banking supervison
77. Fixed deposit prepared to give security for the bank guarantee – Not available as security for any other loan
78. Tier I and Tier II are parts of Capital Fund under capital adequacy guidelines. Tier II cannot be more than Tier I
79. In case of company accounts, company is a legal person, whose bonafides are already certified by ROC, while issuing certificate of incorporation
80. Company’s incorporation is legally complete, with issue of Certificate of Incorporation. But public limited company cannot commence business in the absence of certificate of commencement of business
81.  System of SDF (Sugar Development fund) is controlled by the Ministry of Agriculture
82. Bank gets no protection for a forged cheque – but for forged endorsement, paying bank is liable
83. Where endorsements are irregular, bank does not get any protection
84. Period allowed for opening of an account – 15 to 20 minutes
85. What is a garnishee order ? – an attachment order of a competent court on judgment debtor’s debtor (in case of bank deposits, the bank)
86. Cheque issued by a company/firm as “yourself”. Received with an endorsement to issue a bank draft – bank draft will be issued if endorsement is signed by the authorized person
87. Current account in the name of a minor – can be opened but precautions will have to be taken – Section 85 (2) of Negotiable Instruments Act – provides protection to paying banker in case of endorsement on a bearer cheque
88. Amount of Fixed deposit where maturity proceeds can be paid in cash – not to exceed Rs. 20000.00
89. DICGC insurance cover for deposit – Rs. 1.00 lakhs per depositor of the bank
90. Is nomination in a HUF account is permitted ? – No
91.  Is nomination in Proprietorship firm’s account permitted ? – Yes
92.  PAN quoting – mandatory for preparation of draft by deposit of cash – Rs. 50000.00
93. Cheque issued in favour of company – Endorsed by the company in favour of a director – Not to be collected for the personal account of the director
94. In a trust account on the death of anyone of the trustees – new authority required
95.  Sans recourse endorsement – where endorser reduces his liability by express words
96. Special Crossing favouring two banks – Cheque can be paid only if one of them is an agent and payment to be made to the agent bank
97. MICR is called Magnetic Ink Character Recognition
98.  Order Nisi – 1st stage in garnishee order-  provisional attachment of account
99. Protection to collecting bank for draft – Section 131 A of Negotiable Instruments Act
100. Bill of Exchange has been defined where  ? – Section 5 of Negotiable Instruments Act

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