LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. Under Section 35 (4) of the BR Act , Central Government can prohibit a banking company from accepting fresh deposits is the business of the banking company is conducted ..............
a) not profitably
b) not in compliance with the act
c) to the detriment of interest of its depositors
d) None of the above
Answer : C
2. The undertaking of a banking company may be acquired by the Central Government if he is satisfied on a report from the Reserve Bank that the banking company has failed on more than one occasion to comply with the ..........
a) directions of the government
b) directions under Section 21 and 35A of BR Act
c) Provisions of the Companies Act
d) None of the above
Answer : B
3. A memorandum recording mortgage by deposit of title deeds does not require .............
a)Registration
b) Stamping
c) Both Registration and Stamping
d) None of these
Answer : A
4. A Lease for agricultural or manufacturing purpose can be terminated by the lessor or lessee by giving............. notice to one another .
a) 1 month
b) 3 month
c) 6 month
d) 12 month
Answer : C
5. Pari Passu is a charge which does not indicate .............
i) first charge over securities
ii) equal charge to charge holders
iii) proportionate share to charge holders
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
Answer : A
6. Banker's Lien is a /an ...............
a) Hypothecation
b) Mortgage
c) Implied pledge
d) Pledge
Answer : C
7. Who among the following can be an Authorised Dealer of Category III?
i) Commercial Banks
ii) RRBs
iii) State and Urban Co-op Banks
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
Answer: B
8. In case of ............ goods , Banker's Lien is not applicable .
a) Owner's Goods
b) Stolen Goods
c) Finished Goods
d) None of these
Answer : B
9. The right to ......... two accounts is known as set-off.
a) open
b) banker's right
c) Combine
d) None of these
Answer : C
10. The right of set-off is ..............
a) Customer's right
b) Banker's right
c) Banker's Obligation
d) Bank's description
Answer : D
11. Garnishee order is issued by ....................
a) Police Officer
b) Revenue authority
c) Enforcement authority
d) Court of Law
Answer : D
12. Adjudicating authority has to Endeavour to dispose off the complaints within...........from the date of receipt of the complaint .
a) One year
b) 182 days
c) 6 Months
d) 4 weeks
Answer : A
13. What is the time limit for disposing an appeal by Appellate Authority ?
a) within 2 months
b) within 3 months
c) within 6 months
d) No such limit
Answer : C
14. How many Debt Recovery Appellate Tribunals have been set up ?
a) 2
b) 5
c) 7
d) 10
Answer : B
15. Where an appeal against the order of Appellate Tribunal can be made ?
a) No where
b) High Court
c) Supreme Court
d) Concerned District Court
Answer : B
16. Which of the following reasons prompted for set up of Debt Recovery Tribunal ?
a) Under delay in setting the claims by court
b) Delay in extension the decree
c) Non- availability of assets with the borrower due to inordinate delay in courts
d) All the above
Answer : D
17. A Bank has allowed a Current A/c Holder ad hoc overdraft of INR 15 lakhs . Whether this is recoverable under provisions of DRT Act ?
a) No, as it is not a regular loan
b) No, as only secured loans can be recovered under the DRT Act .
c) Yes, as it is legally recoverable amount by the Bank
d) Yes, but if the tribunal grants special permission to lodge the case .
Answer : C
18. Promissory Note can be ............
(i) Demand PN , (ii) Usance PN
a) Only (i)
b) Only (ii)
c) Either (i) or (ii)
d) Neither (i) nor (ii)
Answer : C
19. Attachment order is issued by ..............
a) Drawer of a cheque
b) Revenue Authority
c) Manager of the Bank
d) None of these
Answer : B
20. ...................... is one of the modes of lending by a banker .
a) Documentary Bills
b) Bill of Purchase
c) Supply Bills
d) Bill Finance
Answer : D
a) not profitably
b) not in compliance with the act
c) to the detriment of interest of its depositors
d) None of the above
Answer : C
2. The undertaking of a banking company may be acquired by the Central Government if he is satisfied on a report from the Reserve Bank that the banking company has failed on more than one occasion to comply with the ..........
a) directions of the government
b) directions under Section 21 and 35A of BR Act
c) Provisions of the Companies Act
d) None of the above
Answer : B
3. A memorandum recording mortgage by deposit of title deeds does not require .............
a)Registration
b) Stamping
c) Both Registration and Stamping
d) None of these
Answer : A
4. A Lease for agricultural or manufacturing purpose can be terminated by the lessor or lessee by giving............. notice to one another .
a) 1 month
b) 3 month
c) 6 month
d) 12 month
Answer : C
5. Pari Passu is a charge which does not indicate .............
i) first charge over securities
ii) equal charge to charge holders
iii) proportionate share to charge holders
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
Answer : A
6. Banker's Lien is a /an ...............
a) Hypothecation
b) Mortgage
c) Implied pledge
d) Pledge
Answer : C
7. Who among the following can be an Authorised Dealer of Category III?
i) Commercial Banks
ii) RRBs
iii) State and Urban Co-op Banks
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
Answer: B
8. In case of ............ goods , Banker's Lien is not applicable .
a) Owner's Goods
b) Stolen Goods
c) Finished Goods
d) None of these
Answer : B
9. The right to ......... two accounts is known as set-off.
a) open
b) banker's right
c) Combine
d) None of these
Answer : C
10. The right of set-off is ..............
a) Customer's right
b) Banker's right
c) Banker's Obligation
d) Bank's description
Answer : D
11. Garnishee order is issued by ....................
a) Police Officer
b) Revenue authority
c) Enforcement authority
d) Court of Law
Answer : D
12. Adjudicating authority has to Endeavour to dispose off the complaints within...........from the date of receipt of the complaint .
a) One year
b) 182 days
c) 6 Months
d) 4 weeks
Answer : A
13. What is the time limit for disposing an appeal by Appellate Authority ?
a) within 2 months
b) within 3 months
c) within 6 months
d) No such limit
Answer : C
14. How many Debt Recovery Appellate Tribunals have been set up ?
a) 2
b) 5
c) 7
d) 10
Answer : B
15. Where an appeal against the order of Appellate Tribunal can be made ?
a) No where
b) High Court
c) Supreme Court
d) Concerned District Court
Answer : B
16. Which of the following reasons prompted for set up of Debt Recovery Tribunal ?
a) Under delay in setting the claims by court
b) Delay in extension the decree
c) Non- availability of assets with the borrower due to inordinate delay in courts
d) All the above
Answer : D
17. A Bank has allowed a Current A/c Holder ad hoc overdraft of INR 15 lakhs . Whether this is recoverable under provisions of DRT Act ?
a) No, as it is not a regular loan
b) No, as only secured loans can be recovered under the DRT Act .
c) Yes, as it is legally recoverable amount by the Bank
d) Yes, but if the tribunal grants special permission to lodge the case .
Answer : C
18. Promissory Note can be ............
(i) Demand PN , (ii) Usance PN
a) Only (i)
b) Only (ii)
c) Either (i) or (ii)
d) Neither (i) nor (ii)
Answer : C
19. Attachment order is issued by ..............
a) Drawer of a cheque
b) Revenue Authority
c) Manager of the Bank
d) None of these
Answer : B
20. ...................... is one of the modes of lending by a banker .
a) Documentary Bills
b) Bill of Purchase
c) Supply Bills
d) Bill Finance
Answer : D