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LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER 

1. Which among the following are classified as Current A/c Forex Transaction ?
(i). payment due as interest on loans and as net income from investments 
(ii). taking out an insurance policy from an insurance company outside India 
(iii). remittances for living expenses of parents , spouse and children residing abroad

a. Only (i) and (ii)
b. Only (i) and (iii) 
c. Only (ii) and (iii)
d. (i),(ii) and (iii)

Answer : B 

2. What is the true limit for a bank to dispose customer's complaints ?
a. 1 Month 
b. 2 Month 
c. 3 Month 
d. 6 Month 

Answer : B 

3. What kind of complaint can be lodged with the banking ombudsman ?
a. delay in collection of cheques 
b. deficiency in cash transaction
c. non-issue of demand drafts 
d. All the above 

Answer :  D

4. The ombudsman signifies .........
a. an institution established to content and prevent abuses of power by Public Official 
b. redress individual grievances
c. acts as an external agency to probe in to  administrative faults 
d. All the above 

Answer : D 

5. The role of Banking Ombudsman is ....................
a. resolution of complaints against banks regarding deficiency of services
b. it is an external agency which includes meditation, persuasion and adjudication
c. it is an external agency having independent identity 
d. All the above 

Answer : D  

6. Section 22 of RBI Acts relate which aspects of banking ?
a. RBI authority to regulate credit 
b. 
RBI authority to regulate banking business
c. RBI authority to function as bank for govt business
d. RBI authority to issue and manage currency of India

Answer : D 

7. A Banking co. having operations in India could be constituted as a ...................
a. Body corporate under special act 
b. Registered under companies act
c. a foreign company under provisions of company act
d. All the above 

Answer : B 

8. Organisational or constitutional aspects of banking co. are regulated by .................
a. RBI 
b. SEBI 
c. Authorities under companies act 
d. All the above

Answer : A 

9. Agent can be appointed by ...............
a. express appointment 
b. implication of law
c. ratification by principal 
d. any of the above three modes 

Answer  : D 

10. The Banking Ombudsman Scheme 1995 was amended in...............
a. 2000
b.2001
c. 2002
d. 2004

​Answer : C

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