LEGAL AND REGULATORY ASPECTS OF BANKING SOLVED PAPER
1. Besides the SARFAESI Act , some other laws require some registration of charge created in the property . Whether such double registration is avoidable?
a) Yes , the creditor can choose under which law he needs registration.
b) No. Registration Under SARFAESI Act as well as any other applicable law will have to be made , as SARFAESI act is not substitution of any other law.
c) Yes , if one charge noting is by a registered document
d) No, as the civil courts and DRT still have jurisdiction against the properties both registration are required .
Answer : B
2. The bank is required to comply with the execution of the award of banking ombudsman within .............
a) 7 days
b)15 days
c) 30 days
d) 60 days
Answer : C
3. What is the maximum time for settlement of a claim before passing an award by the banking ombudsman ?
a) within 15 days from the date of receipt of complaint
b) within 1 month from the date of receipt of complaint
c) within 2 month from the date of receipt of complaint
d) within 3 month from the date of receipt of complaint
Answer : B
4. Banking Ombudsman scheme does not cover ............
a) Scheduled commercial banks
b) RRBs
c) Co-operative Banks
d) Financial Institutions
Answer : D
5. Can the order of Central Government appointing Presiding officer of the Tribunal be challenged in any court ?
a) Yes , Before the appellate Tribunal
b) No.
c) No. Unless the High Court Permits for it .
d) Yes , Under the Constitution Article 226 before the High Court .
Answer : B
6. Which among the following are classified as Capital Account Forex Transactions ?
i) Investment in Foreign Securities
ii) Raising Foreign currency loans in India and abroad
iii) Payments due in connection with foreign trade , short term banking and credit facilities in the ordinary course of business.
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and ( iii)
d) (i), (ii) and (iii)
Answer: A
7. When a civil suit filed in civil court is transferred by DRT , if fresh court fee is required to be paid ?
a) No
b) Yes , as the authorities are different
c) No, If there is no counterclaim .
d) Yes, as the court fee stamps are different .
Answer : A
8. When filling appeal before the appellate tribunal if any amount is required to be deposited ?
a) No, the amount is required to be deposited till the appellate tribunal decides.
b) Yes. Court Fee on the appeal amount is required to be paid .
c) Yes , 75 % of the amount determined by the tribunal is required to be deposited at the timing of filling of the appeal.
d) Yes , after admission of the appeal 75% of the amount determined by the tribunal is required to be deposited .
Answer : C
9. A company is under winding up process . Whether High Court permission is required to a Bank to proceed against it before DRT ?
a) No, as the DRT act being a special law having over-riding effect over other laws.
b) Yes, as Companies Act specially provides to that effect .
c) Depends on the stage of winding up process.
d) No Permission but Concurrence of high court is required .
Answer : A
10. According to Section 3 of Evidence Act , the Document can be defined :
a) any matter expressed or described upon any substance by means of letter , figure or marks .
b) Or by any other means
c) It intends to be used for purpose of recording that matter .
d) All the above
Answer : D
11. The term considering new bank under banking company ( Acquisition and transfer of undertaking ) act 1970 stands for .................
a) New Private Banks
b) Old Private Banks
c) RRBs
d) Nationalised Banks
Answer : D
12. Which was the first committee recommended for establishment of Special Recovery Tribunals for Books and Financial Institutions ?
a) Tiwari Committee
b) Ojha Committee
c) Narasimham Committee
d) Rangrajan Committee
Answer : A
13. Evidence Means ..................
a) All statements presented before a court by way of witnesses.
b) It is in relation to a matter of fact under inquiry .
c) Such statements are called oral evidence
d) All the above
Answer : D
14. Which of the following statements is correct ?
a) All documents produced for inspection of court are called documentary evidence.
b) Primary Document means original document itself .
c) Certified Copies are secondary evidences.
d) All the above .
Answer : D
15. Forex Transactions under FEMA can be classified into ......................
(i) Current Account (ii) Capital Account
a) Only (i)
b) Only (ii)
c) Either (i) or (ii)
d) Neither (i) nor (ii)
Answer : C
16. In which year the Tiwari Committee recommended for establishment of special tribunals for Banks dues recovery ?
a) 1981
b) 1987
c) 1991
d) 1995
Answer : A
17. Which of the following committees also recommended the set up of Debit Recovery Tribunals ?
a) Committee on Financial Sector Reforms
b) Committee on Custom Service
c) Committee on RRBs.
d) None of the above
Answer : A
18. In which year the recovery of debts due to banks and financial Institutions Act was enacted ?
a) 1991
b) 1993
c) 1994
d) 1995
Answer : B
19. In which of the following states the Recovery of Debts due act is under implementation?
a) Selected States of the country
b) All the State of Country
c) All over the country except Jammu and Kashmir
d) No Such restriction
Answer : B
20. Which of the following cases to the Recovery of Debts due Act is applicable ?
a) Where amount involved is less than 10 lakhs
b) Where amount involved is INR 10 lakhs or above
c) Where amount involved is upto INR 11 lakhs
d) No Such Restriction
Answer : B
a) Yes , the creditor can choose under which law he needs registration.
b) No. Registration Under SARFAESI Act as well as any other applicable law will have to be made , as SARFAESI act is not substitution of any other law.
c) Yes , if one charge noting is by a registered document
d) No, as the civil courts and DRT still have jurisdiction against the properties both registration are required .
Answer : B
2. The bank is required to comply with the execution of the award of banking ombudsman within .............
a) 7 days
b)15 days
c) 30 days
d) 60 days
Answer : C
3. What is the maximum time for settlement of a claim before passing an award by the banking ombudsman ?
a) within 15 days from the date of receipt of complaint
b) within 1 month from the date of receipt of complaint
c) within 2 month from the date of receipt of complaint
d) within 3 month from the date of receipt of complaint
Answer : B
4. Banking Ombudsman scheme does not cover ............
a) Scheduled commercial banks
b) RRBs
c) Co-operative Banks
d) Financial Institutions
Answer : D
5. Can the order of Central Government appointing Presiding officer of the Tribunal be challenged in any court ?
a) Yes , Before the appellate Tribunal
b) No.
c) No. Unless the High Court Permits for it .
d) Yes , Under the Constitution Article 226 before the High Court .
Answer : B
6. Which among the following are classified as Capital Account Forex Transactions ?
i) Investment in Foreign Securities
ii) Raising Foreign currency loans in India and abroad
iii) Payments due in connection with foreign trade , short term banking and credit facilities in the ordinary course of business.
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and ( iii)
d) (i), (ii) and (iii)
Answer: A
7. When a civil suit filed in civil court is transferred by DRT , if fresh court fee is required to be paid ?
a) No
b) Yes , as the authorities are different
c) No, If there is no counterclaim .
d) Yes, as the court fee stamps are different .
Answer : A
8. When filling appeal before the appellate tribunal if any amount is required to be deposited ?
a) No, the amount is required to be deposited till the appellate tribunal decides.
b) Yes. Court Fee on the appeal amount is required to be paid .
c) Yes , 75 % of the amount determined by the tribunal is required to be deposited at the timing of filling of the appeal.
d) Yes , after admission of the appeal 75% of the amount determined by the tribunal is required to be deposited .
Answer : C
9. A company is under winding up process . Whether High Court permission is required to a Bank to proceed against it before DRT ?
a) No, as the DRT act being a special law having over-riding effect over other laws.
b) Yes, as Companies Act specially provides to that effect .
c) Depends on the stage of winding up process.
d) No Permission but Concurrence of high court is required .
Answer : A
10. According to Section 3 of Evidence Act , the Document can be defined :
a) any matter expressed or described upon any substance by means of letter , figure or marks .
b) Or by any other means
c) It intends to be used for purpose of recording that matter .
d) All the above
Answer : D
11. The term considering new bank under banking company ( Acquisition and transfer of undertaking ) act 1970 stands for .................
a) New Private Banks
b) Old Private Banks
c) RRBs
d) Nationalised Banks
Answer : D
12. Which was the first committee recommended for establishment of Special Recovery Tribunals for Books and Financial Institutions ?
a) Tiwari Committee
b) Ojha Committee
c) Narasimham Committee
d) Rangrajan Committee
Answer : A
13. Evidence Means ..................
a) All statements presented before a court by way of witnesses.
b) It is in relation to a matter of fact under inquiry .
c) Such statements are called oral evidence
d) All the above
Answer : D
14. Which of the following statements is correct ?
a) All documents produced for inspection of court are called documentary evidence.
b) Primary Document means original document itself .
c) Certified Copies are secondary evidences.
d) All the above .
Answer : D
15. Forex Transactions under FEMA can be classified into ......................
(i) Current Account (ii) Capital Account
a) Only (i)
b) Only (ii)
c) Either (i) or (ii)
d) Neither (i) nor (ii)
Answer : C
16. In which year the Tiwari Committee recommended for establishment of special tribunals for Banks dues recovery ?
a) 1981
b) 1987
c) 1991
d) 1995
Answer : A
17. Which of the following committees also recommended the set up of Debit Recovery Tribunals ?
a) Committee on Financial Sector Reforms
b) Committee on Custom Service
c) Committee on RRBs.
d) None of the above
Answer : A
18. In which year the recovery of debts due to banks and financial Institutions Act was enacted ?
a) 1991
b) 1993
c) 1994
d) 1995
Answer : B
19. In which of the following states the Recovery of Debts due act is under implementation?
a) Selected States of the country
b) All the State of Country
c) All over the country except Jammu and Kashmir
d) No Such restriction
Answer : B
20. Which of the following cases to the Recovery of Debts due Act is applicable ?
a) Where amount involved is less than 10 lakhs
b) Where amount involved is INR 10 lakhs or above
c) Where amount involved is upto INR 11 lakhs
d) No Such Restriction
Answer : B