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Saturday, December 1, 2012

BANK PROMOTIONS - RAPID READING EXERCISE – PART:: 14


                                                                                                                                                                                                                                                                                                 

01. Signatures of the bank accountholders obtained in nominations forms DA1; DA2; DA3 need not be attested by witnesses.
02.  In terms of banking companies (nomination) rules, 1985, the thumb impression of the accountholder obtained on nomination forms DA1, DA2, DA3 are required to be attested by two witnesses.
03. Nomination facility is available for joint deposit accounts also with or without either or survivor mandates opened by customers
04. The term Banking is defined in – Banking Regulation act, 1949
05. Reserve Bank of India is called as the regulator for the commercial banks in the country
06. A right of general lien is available to bankers, policy brokers, wharfingers, attorney of court.
07. A garnishee order is issued at the instance of – judgment creditor
08. A power of attorney refers to – an authority to act on behalf of another person
09. A negotiable instrument payable to order is negotiated by endorsement and delivery
10. A post dated cheque affects the risks of the – paying banker
11. DRT act was passed in the parliament for establishment of tribunal in order to effect expeditious recovery of debts due to banks and financial institutions.
12. A crossing of a cheque means – two transverse parallel lines on a cheque
13. Converting a cheque from order to bearer – is considered to be the material alteration in the cheque
14. As per section 138 of Negotiable Instruments act, 1881, the payee of a cheque may initiate criminal action when the cheque is returned for the reasons – insufficient funds.
15. Demand draft is – an order to pay money drawn by a bank upon itself or upon another bank to pay a certain sum of money either to or to the order of a specified person.
16. While collecting a cheque/bill etc., for a customer the bank acts as an – agent of the customer
17. The monetary jurisdiction of the debt recovery tribunal is – Rs. 10 lakhs and above
18. Charging a security means – making the security available as a cover for an advance in the case of default by the borrower
19. A mortgage means – transfer of an interest in specific immovable property for the purpose of securing a loan
20. In case of equitable mortgage – no mortgage deed is required to be executed
21. The liability of the guarantor is – co extensive with that of a principal debtor
22. When the bank grants overdraft facilities to a customer but account is in credit balance, the banker is – debtor of the customer
23. Right of set off of a banker refers to – setting of amount due from the customer on the dues from some other customer.
24. Legal proceedings – would initiate in cases where the debtor is unwilling to pay or refuses to pay the overdue debt.
25. Nomination in respect of bank’s deposit accounts – does not affect the right of claim
26. Inchoate instrument is one – which is incomplete as to its date, amount or name of the payee
27. Once a draft is issued – it is open to the purchaser to get the draft cancelled before it is delivered to the payee
28. The role functions and tasks of the recovery agents will be generally mentioned in the – debt recovery agreement with the bank
29. The securitization and reconstruction of finance assets and enforcement of banking security interest act – SARFAESI act – allowed the banks to take possession of the assets of defaulting borrowers and charged to the bank – without the legal process
30. A mortgage involves – transfer of interest
31. Term deposits cannot be transferred to – third parties
32. Salaried employees, people belonging to lower economic strata, government departments, government owned companies and regulatory and statutory bodies are called as low risk customers or level I customers
33. High net worth customers, nonresident customers and blind and pardanishin are called as medium risk customers or level 2 customers
34. Trusts, charities, NGOs, companies having close family share holding or beneficial ownership, firms with sleeping partners, accounts under foreign contribution act are called as high risk customers or level 3 customers
35. Politically exposed persons of foreign origin, those with dubious reputation as per public information available, accounts of non face to face customers, high net worth non residents accounts and bullion dealers are called as high risk customers or level 3 customers.
36. Periodical updation of customer data has to be done by obtaining latest photograph and address proof as per KYC guidelines
37. Periodical updation KYC– once in five years for low risk customers
38. Periodical updation – once in two years in the case of medium and high risk customers
39. Periodical updation has to be done on quarterly basis in April, July, October and January.
40. Trusts, NGOs, charities and organizations receiving foreign funding are to be treated as high risk customers.
41. Savings bank deposit is called as the “mother of deposits”
42. Savings bank accounts should not be opened for government departments, bodies depending on budgetary allocation for performance of the functions
43. Minimum balance is waived while opening the account in the case of NRIs, students, pensioners drawing pensions through the bank, employees of our bank, ex employees of the bank who are eligible for preferential rate of interest and canara super salary savings account.
44. The unique identification number project of Government of India headed by Nandan Nilekeni is called as – aadhar
45. Right of set off is applicable in the case of two or more accounts having debit and credit balance in same or different branches
46. Right of set off can be exercised if there is a relationship of debtor and creditor, creditor and debtor simultaneously, in the same name and capacity
47. Right of set off cannot be exercised when garnishee or order or attachment order has been served
48. The status of nominee – is the trustee for legal heirs
49. Nomination can be for individual accounts an proprietorship accounts only and not for partnership accounts, companies, trusts, societies or hindu undivided family
50. Nomination can be in favour of individuals only and he can be resident nonresident, minor even or insolvent person.
51. A minor can be a nominee; however, he cannot appoint a nominee
52. In the case of either or survivor account, anyone can operate the account till both are alive and after death of either of them, the bank can pay the balance to the survivor without any formality
53. In the case of accounts payable jointly, when both are alive, if one or the two expires, the bank would pay the balance to survivor along with the legal heirs of the deceased person.
54. According section 183 of Indian contract act, a minor cannot appoint an agent; he cannot delegate powers to others and a minor can be appointed as an agent and bind his principal
55. The cheque which contains the extract mirror image of a paper cheque with the use of digital signatures is called as electronic cheque
56. When it comes to endorsement by minor, a minor can endorse under section 26 of negotiable instruments act, but he will not be liable as endorser
57. According to section 85A of NI act, the demand draft is an order to pay money, drawn by one office of the bank upon another office of the same bank for a sum of money payable to order on demand.
58. The instruments which have been legally recognized as negotiable instruments as per customs and usages of the trade are – pay orders, banker’s cheques, government promissory notes, certificate of deposits, commercial paper, treasury bills, hundi, bill of lading, railway receipts, dock warrants, warehouse receipts (wharfinger certificates) delivery orders, GRs issued by transport operators approved by Indian Banks Association, Lorry receipts approved by Indian Banks Association
59. Airway bill is neither a document to title to goods nor recognized as negotiable instruments
60. In the case of promissory notes payable in instalments, on default in payment in one instalment, entire amount becomes payable
61. In the case of safe deposit lockers, the bank is called as the lessor and the customer is called as the lessee
62. In the case of locker hired jointly with joint operations and nomination, if any hirer dies, the access will be given jointly to survivor and nominee
63. Cases upto Rs. 20 lakhs can be entertained in Lok adalats and above Rs. 20 lakhs to be referred to DRT Loak adalat
64. Lok adalat was created under legal service authority act, 1987
65. No appeal against the decisions taken by Lok adalat as the decree is the consent decree
66. Banks can call Lok Adalat with application to high court
67. Savings deposit is called as the mother of all deposits
68. Joint accounts can be opened for savings bank accounts with maximum of four persons

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