The Banking Regulation Act 1949, came into force on

16th March 1949 19th July 1969 1st July 1949 1st January 1949 None of these State Bank group Foreign Banks New Generation Private Sector Banks Primary Agricultural co-operative societies None of these Power of RBI to remove managerial and other persons from office Return of unclaimed deposits Business that can be undertaken by the Banks Holding of land and buildings Nomination in respect of Bank Deposits

B R Act is not applicable to

Section 45ZA of the BR act is about

Under Sec _____ of BR Act, inspection of branches of Indian banks situated abroad is to be carried out by

12 7 35 45 None

As per Sec 26 of B R Act, every banking company is required to prepare its final accounts as per the format prescribed in

II schedule of Reserve Bank of India Act III schedule of Banking Regulation act Table A of companies Act Suggested by Association of Chartered Accountants None of these

In terms of Section 12 of Banking Regulation Act 1949, the minimum ratio between Authorised, subscribed and paid up capital of a banking company should be

2:2:1 1 :1:1 4:2:1 3:2:1 None

The customer has a right to ask the bank to return the paid instruments before the expiry period of preservation. This is under

Section 13 of B R Act Section 45z of B R Act Sec 34 of B R Act Sec 12 of B R Act None of these 21 26 35 42 None 42, BR Act 24, RBI Act 24, BR Act 42, RBI Act 21 22 23 24 35

Selective Credit Control is exercised by RBI under the provisions of Sec____ of B R Act

As per the provisions of Sec____ of _____ Act, banks are required to maintain SLR

Sec ___ of B R Act, banks are required to seek approval from RBI before opening branches

Before declaring dividend, a banking company has to transfer not less than ___% of the profit to Reserve Fund, as per the provisions of Sec 17 of BR Act

25 15 10 20 None

As per Sec ____ of B R Act, a banking company shall not grant any loan against its own shares

16 17 19 20 24

Minimum capital requirement for domestic banks & foreign banks are (only for Pvt sector banks) is prescribed under Sec ____ of B R Act.

5 8 9 11 None

As per section 12 of BR Act, a shareholder, irrespective of his holdings, can not exercise more than ____ of the total voting rights of all the shareholders of the bank.

10 15 12 5 None 10 lakhs 5 lakhs 1 lakh No such stipulation None of theses

A loss making bank can make donations only upto Rs. ___________ during a Financial year

Your branch has received a Garnishee order in the name of your customer having Savings Bank account, with following transactions. Which amount these is not subject matter of Garnishee Order An advice ready for dispatch to another branch after debit to the account in payment of cheque An advice received for a cheque which was sent in collection, from another branch but not credited to the account so far A cheque sent in clearing, the amount of which has been credited to the account An amount of Rs.10000 relating to his wifes account credited by mistake to the account of the customer All the above To pass a cheque issued by one of your Current Account customer, in favour of LIC of India, you have allowed an overdraft of Rs.500, without his request. The customer is now refusing to regularize the account. The bank Can recover the amount, along with interest Cannot recover the amount Cannot recover the amount as it was given without the request of the customer Can recover only the amount of overdrawing but not any interest on it A Garnishee order is issued on Mr.Ram. The bank is having account in the name of Mr.Ram and Mr.Shyam, for which the operation mode is Former or survivor. Then The order will not be applicable The order will be applicable The order will be applicable even if the account is operation jointly or either or survivor

The order will be applicable only if it is operation jointly None of the above Mrs. Subha is having a Fixed Deposit of Rs.100000 and a locker facility along with her husband Mr.Sridhar. She wants to make a single nomination for both the accounts. Nomination has to be done separately for each account Locker in joint names can not have nomination For Deposit account in joint names, nomination is not permitted. Single Nomination can be accepted as they are in the same name None of these A partnership firm, having five partners, out of which one is a minor aged 16 years who has been admitted only for the benefits, wants to open a current account with your branch. Then who are will sign the account opening form? All the five partners including the minor All the four partners and for the minor, the guardian All the four partners and father of the minor Only four partners None of these When the partners have decided to dissolve the firm and started the process, what are the situations where the partners still have rights to bind other partners? To wind up the business firm To complete all those transactions which could not be completed till the date of dissolution Till all the liabilities of the firm are discharged All the above None of the above PRN & Co, having Prasad, Ramesh and Naveen as partners is maintaining a current account in your branch. You came to know that Mr.Ramesh wants to retire. What the branch should do? Letter of retirement, signed by all the partners should be obtained The name of the retiring partner, ie. Mr.Ramesh, will be removed from the records of the bank The letter of continuity of the firm after retirement would be obtained The partnership account should be closed as one partner has retired A to C Mr.Kumar, one of your customer , who met with an accident is not able to put his signature or thumb impression on the cheque to obtain payment. In that case Payment can not be made as the bank cannot take the signature or thumb impression Payment can be made to any other close relative like wife/son/daughter etc, by signing on his behalf Payment can be made to him on the basis of obtaining some other mark Payment can be made to him on the basis of obtaining some other mark in presence of two witnesses None of these ABC Bank issued an FDR in the name of Mr.Suresh and his wife Mrs.Uma. She approaches the bank and requests for premature closure of the deposit for treating her husband Mr.Suresh who is hospitalized and not in a position to sign.

The request of Mrs.Uma will be considered on the basis of the situation under humanitarian concerns The request of Mrs.Uma will be considered on production of certificate from the hospital to the effect that Mr.Suresh is admitted in hospital The request of Mrs.Uma cannot be accepted Payment can be made after verifying the facts and after obtaining the thumb/toe impression of Mr.Suresh in front of the doctor who has to witness, at the hospital One of your customers Mr.Raman has expired. Neither the account had any nomination, nor did the customer leave any will. Then... The balance will be paid to the nominee or legal heirs The balance will be paid to administrator on the basis of letter of administration if issued by the competent court The balance will be paid to executor The balance will be paid to legal heirs B or D M/s.Motherland & Co, a partnership firm is maintaining a current account with your branch. The mode of operation was Any of the partner. A cheque which was signed BY Mr.Shyam, one of the partner, in favour of M/s.Arvind & Co, was countermanded by himself. Later, Mr.Shyam, came and submitted a letter to the bank that by oversight, he has countermanded a wrong cheque and request you to revoke the instruction. You can... Accept if the revocation letter is signed by all the partners Accept even if the revocation letter is signed only by Mr.Shyam Once countermanded, it cannot be revoked Accept if at least two partners are signing the letter None of these Your branch is having a saving bank account in the name of Mr.Lalit and Mr.Sumit with mode of operation as E or S. Mr.Lalit has become adjudged insolvent. A cheque signed by Mr.Sumit was presented in clearing. In this situation... Cheque will be paid as it is signed by Mr.Sumit as he is not the insolvent Cheque can be passed as it is having E or S option Cheque should be returned with the remark Joint Account Holder declared insolvent. Instruction from official assignee shall be obtained None of these Relationship between bank and customer where the customer has deposited the amount without giving full particulars and amount has been placed by the bank in a sundry account will be: Creditor and debtor Beneficiary and trustee Debtor and creditor Trustee and beneficiary None of these Your branch is having a saving bank account of a trust, for which Mr.Krishnan and Mr. Vasudevan are the trustees. In an accident, both of them expired. What the bank should do now? The beneficiaries can operate the account themselves as both the trustees died

The beneficiaries have to choose two more trustees and submit the resolution to the bank The amount will be divided among the beneficiaries and account will be closed The beneficiaries will be advised to approach the court for appointment of new trustee None of these

Mr.X & Mrs.Y w/o Mr.X are having a joint locker, for which they have nominated their son Mr.H. Mr.X has dies. Now

Mrs.Y can operate the locker Mrs.Y can operate the locker along with Mr.H Mrs.Y can operate the locker along with all legal heirs. The locker should be surrendered in front of two witnesses to Mrs.Y and Mr.H. Any of the above

General Banking
40 Questions on Attachment Order, Garnishee Order, Appropriation of Funds
Congratulations - you have completed the Test: General Banking. You scored 10 out of 40. All the questions in the quiz along with their answers are shown below. Correct answers are displayed in bold with a Green tick mark while the incorrect ones crossed in Red.

Bankers lien is a general lien and is specially defined under Sec 58 of the Banking Regulation Act Sec 69 of N I Act Sec 171 of Indian Contract Act Sec 45 of RBI Act None of these Bankers General Lien is available in respect of securities received for sale securities deposited by the customer to secure a specific loan all securities deposited with him as banker by a customer, unless there is a contract inconsistent with lien. Credit balance in deposit account of the customer None of these The right of lien is available to the banker only when the goods / securities have been given to him as trustee bailee beneficiary agent None of these The right of lien is available to the banker only when there is legally enforceable debt within the limitation period even in respect of time barred debts

upto 12 years from the date of advance only for those debts for which the securities were offered None of these Bankers lien is a special type of mortgage an implied pledge a hypothecation transaction a type of assignment None of these Bankers can exercise General Lien in respect of Land and buildings Machinery hypothecated to the bank Goods and securities Balance in Current Account None of these When a customer owing two or more debts to the banker pays in money which is not sufficient to discharge all the debts without any specific direction for its appropriation The banker has a right to use the payment as per his discretion to wipe out any debt which is due including a time barred debt The banker may appropriate the payment as per his choice against debts which are not time barred The amount will be appropriated in order of time the debts were incurred The banker has to get the consent of the borrower before appropriation None of these
Question was not answered

Where neither the customer nor the banker makes an appropriation of the amount paid in as against any specific debt, the payment shall be applied in discharge of debts Which was created immediately preceding the payment In order of time In equal proportion The matter to be referred to head office and then decided as per the discretion of the board None of these Rule in Claytons case pertains to Payment of cheques in clearing Settlement of dues between the bank and the guarantor or a borrower Bankers general lien Appropriation of payments in a running account None of these According to the rule in claytons case the moneys paid in by a customer in his current account are to be applied towards adjustment of overdraft at the option of the banker as agreed to between the banker and the customer mutually in the order of time in which the debts were incurred as directed by the customer None of these

To avoid operation of the rule of Claytons case a banker should rule-off the account which is overdrawn and open a fresh account for further transaction when a new partner is admitted to a partnership firm the bank receives the notice of death or insolvency of a partner or a joint account holder there is a change in the board of directors of a company if case of death of a managing director of a Joint Stock Company None of these The rule in Claytons case applies in the case of accounts having credit balances clean advances only term loans only running accounts having debit balances None of these The rule in Claytons case applies in the case of joint accounts sole-proprietorship accounts partnership accounts all types of running accounts None of these The Right of Lien refers to Right of the Debtor to forego the securities Right of the creditor to sell securities of the debtor Right of the Creditor to retain possession of securities belonging to debtor Right of the debtor to pledge the securities None of these Bankers Lien is called General Lien because It is very general and has no special rights The Right is generally available but not always The Right is available under the General Clause It means it is not a Particular Lien .i.e. it can be exercised for all his dues payable. None of these Bankers lien is called implied pledge because it is governed by an Agreement it is related to movable properties it is to secure a debt the banker has a right to sell the security None of these Bankers General Lien is not available if the securities are received for safe custody securities deposited are bearer bonds value of the security is less than the amount due securities pledged for a particular loan None of these In bankers Parlance, Set off refers to setting off legal proceedings if the borrower agrees to make payments

setting off dues from one customer against dues to another customer to save reserve requirement setting off amount due from bank to one customer against amounts due from the same customer to the bank adjusting interest due from the customer on the loan against the due on Fixed deposit account none of these While exercising the right of Set off, the banker is advised to issue reasonable notice to avoid wrongful return of cheque to fulfill statutory requirements to recover all the dues from the customer to threaten the customer none of these Combining of accounts of customers is usually resorted to when one account of the customer shows debit balance and the other credit balance one account of the customer is time barred and the other is not both accounts are showing debit balance, one is secured other is not both accounts are showing credit balance; one is active and the other one is dormant None of these In case of death of a customer banking accounts of that customer are stopped only when a banker receives An order issued by a court of competent jurisdiction On production of the death certificate issued by the corporation or local bodies A legal notice from the survivors of the deceased Actual or constructive notice of a customers death None of these There is an announcement in the Newspaper about the death of one of the important client Mr. Ram Mohan yesterday. A cheque is presented in clearing dated one month before. Now... The cheque should be returned with the remarks Drawer Deceased The cheque should be honoured as the bank has not received any written notice of Mr.Ram Mohan from his family The cheque should be paid as it bears the date prior to the death of Mr.Ram Mohan The cheque may be paid if the presentor executes an indemnity bond None of these
Question was not answered

The validity of the cheque will not be affected by the death of the Drawer Drawee Endorser In all cases the cheque loses validity None of these
Question was not answered

A Fixed Deposit is opened in the name of Mr.A & Mr.B. payable to Either or Survivor. Mr.A. dies. Mr.B requests for the premature closure of the deposit. In this case You can make premature closure as per the request of Mr. B

You will make premature closure after obtaining the consent of all the legal heirs of Mr. A You will make the premature closure if Mr.B is the only legal heir of Mr. A You will not make premature closure as the mandate E or S is applicable only in case of maturity None of these

Question was not answered

There is a Current Account in the Joint names of Mr. Ramu & Mr.Somu with a debit balance of Rs.24000.00 Mr..Ramu expires. The bank can recover the overdraft from The Legal Heir of Mr.Ramu only Mr.Somu only Mr.Somu and / or the estates of Mr.Ramu Mr.Somu and the estates of Mr.Ramu in equal proportion None of these
Question was not answered

Mr.Raj, one of your customer had deposited an outstation cheque for collection. Before receiving the proceeds, he expires. Now, on realisation the amount should be credited to The account of Late.Mr. Raj Suspense account pending courts order The account of the legal heirs / nominee Sundry creditors account None of these
Question was not answered

A customer is said to have died intestate, when He has left a will He dies without a will He has left a probate Any one these None of these
Question was not answered

Garnishee means Judgement Creditor Judgement Debtor Commercial Banks Debtor to the Judgement Debtor None of these
Question was not answered

Garnishee Order does not extend to the following types of deposit Term Deposit maturing after one year Credit Balance in Cash credit account Balance in current account All of these will not be attached None of these
Question was not answered

A Garnishee Order received in the name of Mr.A will extend to The account in the name of Mr. A & Mr. B

In the name of a firm where Mr.A. is sole proprietor To the trust account where Mr.A is the trustee To a partnership account where Mr.A. is a partner None of these

Question was not answered

A Garnishee Order in the name of A & B will attach deposits in the name of A alone A & B jointly B alone All the above None of the above
Question was not answered

A Garnishee Order attaches all money of the customer held by the bank in the capacity of a Bailee Trustee Agent Debtor None of these
Question was not answered

A & B maintain a Joint account with present balance of Rs.6000.00 You receive an Income Tax Attachment Order for Rs.8000.00 in the name of B. Unless it is proved otherwise, you will attach Rs. Rs.4000.00 Rs. 3000.00 Rs.6000.00 No amount should be attached None of the above
Question was not answered

IT attachment order is issued under Section ____ of Income Tax Act 1961 131 222 226 229 None of these
Question was not answered

An Income Tax attachment order does not attach Term Deposits Demand Deposits Any money held by the bank other than as deposit Credit balance in CCH account None of the above
Question was not answered

The banker customer relationship comes to an end on the happening of the following event. Death / Insolvency / Lunacy of the depositor Arrest / Imprisonment of the depositor

Migration of the Depositor to a foreign Country All the above None of the above

Question was not answered

Where a Garnishee Order and Income Tax Attachment Order are received by the bank simultaneously, the bank must first comply with the Garnishee Order Income Tax Attachment order The available balance should be allocated on 50:50 basis Any one according to the discretion of the Branch Head None of the above
Question was not answered

Which of the following statement is wrong with reference to the Income Tax Attachment Order? Right of Set-off is available to the banker before applying attachment order In case of default to comply with the order, the bank is liable just like the assessee in default Amount received subsequent to the receipt of the order is also attached Fixed Deposits maturing in future dates also should be attached and paid on the Maturity date None of the above
Question was not answered

A garnishee order is received in the name of a person who has deposits which are kept under lien to bank for issue of letters of guarantee. What will bank do? Ignore the order Pay if guarantees are not invoked Write to Court that they are not payable as they are under lien to Bank You have to make payment and take up the customer to give another deposit as security None of these
Question was not answered Bank can not exercise Right of Set off in the following cases

Deposit in the name of M/s. A & B company, partnership firm and the loan in the name of partner A Deposit in the name of Partner A, and the loan in the name of partnership firm A & B Company Deposit of Mr.A in Karolbagh Delhi Branch of our bank and loan is in Bangalore Indiranagar Branch. Deposit in the name of Mr.A , Lawyer , Office account and loan in the name of Mr.A None of the above can be attached

Question was not answered

RBI Act
Questions About RBI Act
Congratulations - you have completed the Test: RBI ACT.

You scored 0 out of 10. All the questions in the quiz along with their answers are shown below. Correct answers are displayed in bold with a Green tick mark while the incorrect ones crossed in Red. The Reserve Bank of India, established under RBI Act 1934, started functioning from

1st April 1934 1st April 1935 1st September 1934 1st July 1934 None of these

Question was not answered As per section ____ of RBI Act, RBI has the sole right to issue currency notes.

24 22 21 35 None

Question was not answered As per sec 24 of RBI act RBI can issue notes from Rs._____ to Rs._______

1 to 10000 2 to 10000 1 to 5000 2 to 1000 None

Question was not answered No person other than the RBI or Central Government can issue a promissory note marked payable to bearer on demand. This is under sec ____ of RBI Act

24 22 31 35 34

Question was not answered Scheduled banks are required to maintain cash reserve ratio as per terms of

24 of RBI Act 24 of B R Act 42 of RBI Act 42 of B R Act None

Question was not answered RBI subjects a bank to Prompt Corrective Action if certain parameters crosses the trigger point. They are

CAR less than 9% NPA goes beyond 10% ROA becomes less than 0.25% All the above None of the above

Question was not answered Under the powers derived from Sec 20, 21 & 21 A of the Reserve Bank of India

RBI manages the public debt and issues new loans on behalf of the central and state governments The RBI provides refinance to NABARD in respect of agricultural advances RBI regulates flow of credit to the economy by variation in SLR & CRR All the above None of the above

Question was not answered The cash reserve requirements for non-scheduled banks are in terms of ______

Sec 41 of RBI Act Sec 24 of RBI Act Sec 42 of RBI Act Sec 18 of B R Act None of these

Question was not answered The term Moral Suasion refers to

The moral duty of the borrower to deal with only one bank The bankers duty of secracy The advice given by RBI to banks in the matter of lending and other operations with the objective that they might follow/implement None of these

Question was not answered Reverse repo is the rate at which ________ borrows money from _______

Banks from RBI RBI from Banks Commercial Banks from GOI Corporate from commercial banks None of these

Negotiable Instruments Act

Questions About Negotiable Instruments Act
Congratulations - you have completed the Test: Negotiable Instruments Act. You scored 6 out of 50. All the questions in the quiz along with their answers are shown below. Correct answers are displayed in bold with a Green tick mark while the incorrect ones crossed in Red.

The Negotiable Instruments Act 1881 came into effect from 1st January 1881 1st July 1881 1st March 1881 1st March 1882
Question was not answered

The Negotiable Instruments Act 1881 is applicable in All states comprising of erstwhile British India The whole India excluding Jammu & Kashmir The whole India including Jammu & Kashmir The whole India excluding Sikkim & Bengal Negotiable instruments are defined under Section 52 of Banking Regulation Act Sec 13 of NI Act Sec 25 of RBI Act None of these Withdrawal slips used in SB accounts are Negotiable insruments Quasi Negotiable Instruments Non-negotiable instruments Special bearer instruments None of these Having regard to Section 118 NI Act, consideration in the case of a negotiable instrument is Waived To be proved by the plaintiff Immaterial Presumed
Question was not answered

Which of the following instruments can not be made payable otherwise than on demand Bill of exchange Cheque Promissory note None of these If no time is specified in a promissory note or bill of exchange, such instrument is considered as

Inchoate instrument Invalid instrument Payable on demand Not negotiable instrument Which of the following presumption about negotiable instrument is wrong It is endorsed before the date of maturity It was drawn and made on the date it bears It was accepted before maturity in case the acceptance was necessary The holder is always holder in due course None of these A minor is incompetent to be a Payee Drawer Drawee Endorser without being bound by the endorsement himself None of these The term holder refers to the person Who is in possession of the instrument either legally or illegally Who has acquired the instrument for consideration Who is entitled to possess the instrument in his own name and to recover the amount there under None of theses Which of the following are the rights of the holder A holder can convert the blank endorsement to an endorsement in full A holder can obtain a duplicate of the lost bill giving an indemnity if so required by the drawer A holder has the right to sue in his own name on the instrument All of these None of these Which of the following condition is not necessary to qualify as a holder in due course The holder must have taken the instrument under lawful consideration The holder must have taken the instrument with good faith and without negligence or suspicion The holder must have taken the instrument before maturity of the instrument All of these None of these
Question was not answered

A person cannot claim to be a holder in due course but may at most be a holder if he takes An instrument which is irregular on the face of it An instrument which is overdue An inchoate instrument All of these None of these
Question was not answered

A person cannot sue on the basis of a negotiable instrument Unless he is named therein as the payee

He becomes entitled to it as endorsee He becomes bearer of an instrument payable to bearer All of these None of these

Question was not answered

You have allowed overdraft only a cheque sent in clearing. In the event of dishonour of the cheque Bank will not be a holder in due course since full consideration was not parted with while allowing overdraft against the dishonoured cheque Bank will be a holder in due course if it took the same under the circumstances mentioned in section 9 of NI Act Bank may proceed only against its customer who was allowed the overdraft but not against the drawer/endorser None of these
Question was not answered

Mr Ram is the holder of a cheque payble to Ram or order. He simply transfers the cheque to Ashok without endorsing it. In this case Mr.Ashok would be Only assignee of a chose in action and takes bill subject to all defects Holder in due course Holder for value Illegal Holder None of these
Question was not answered

A Bill of exchange is defined by Sec 12 of B R Act Sec 10 of NI Act Sec 5 of NI Act Sec 13 of NI Act None of these
Question was not answered

In order to operate as a valid bill of exchange, the instrument must satisfy the following conditions It must be in writing and signed by the drawer The drawee, the drawer and the money ordered to be paid must be certain The payee must be a certain person or bearer of the instrument All of these
Question was not answered

The term drawee in case of need refers to The person from whom money may be demanded in case of need Indigenous bankers who finance traders in case of need The person to whom a bill has got to be presented for payment when it is dishonoured by the drawee None of these
Question was not answered

Which of the following are the requisite of a promissory note

It must be in writing and contain an unconditional undertaking to pay It must be signed by the maker and the parties thereto must be designated with reasonable certainty The medium of payment must be expressed in money only and the sum payable is to be certain All of these

Question was not answered

A promissory note may be made Only by one person By two or more but not exceeding five By two or more but not more than six By one or more, and no limits
Question was not answered

The assignee of the promissory note will acquire the status of a Holder Holder in due course Payee Drawee None of these
Question was not answered

A promissory note can be drawn for a maximum period of Five years Seven years Ten years No such limit 12 years
Question was not answered

An ante dated cheque is one which contains The date of issue The date before the date of issue An impossible date A date falling on Holiday None of these
Question was not answered

In case of post dated cheques There can never be a holder in due course There may be a holder in due course There will always be a holder in due course The holder will have a defective title None of theses
Question was not answered

Which of the following about the post dated cheques are correct A post dated cheque is only a bill of exchange when it is drawn and it becomes a cheque when it becomes payable on demand A post dated cheque becomes cheque on the date which is written on it

Both of these None of these

Question was not answered

A cheque dated 31st November 2010 is presented on the counter on 30th November 2010. Then it should be PaidReturned with the remark impossible date Returned as Irregulary drawn Will be paid on 1st December
Question was not answered

A cheque presented in clearing on 24th August 2010, is dated 24th June 2010 with a notation valid for one month. In this case, the cheque should be The cheque will be returned with the remark Revalidation required Returned with the remark Conditional order Should be paid as the validity of the cheque is 6 months None of these
Question was not answered

A cheque is filled with the date of national calender and presented for payment. Then It should be paid As per NI act, the date should be as per English Calender It is the discretion of the Branch Manager The drawer should be contacted to change the date
Question was not answered

A cheque is presented in clearing, in which the amount in words and figures differs. According to NI Act the cheque is To be returned with the remark amount in words and figures differs Pay the cheque for the amount expressed in words The amount expressed in figures should be paid The amount whichever is less is to be paid
Question was not answered

A cheque has been affixed with a seal Not more than Rs.10000.00. But the cheque is drawn for Rs.25000.00. Then the cheque will be Honoured as the notation is illegal It will be honoured as these conditionals are prevalent only in case DDs and Dividend/Interest warrents It will be returned with the remark Confirmation of the drawer required. None of these
Question was not answered

A cheque is drawn as Pay to Mr.Vivek without mentioned the words order or bearer and is presented by Mr.Suresh, in whose favour the endorsement is done by Mr.Vivek. In this case The cheque can be paid to Mr.Vivek as he is the endorsee, after proper identifications Can be paid as it can be treated as a bearer cheque To be returned as incomplete cheque To be returned ambiguous cheque None of these

Question was not answered

A cheque is bearing the words Not negotiable on the face, without the parallel transverse lines. Then it will be considered as General crossing Special crossing No crossing Simple crossing None of these
Question was not answered

The Account Payee crossing is instruction to Collecting Banker Paying Banker Drawee bank Payee None of these
Question was not answered

Section 127 of NI Act prohibits payment of a cheque Crossed specially to more than one bank except where the second banker acts as an agent for collection of the first banker Bearing general crossing Bearing forged signature Which is presented for payment after business hours
Question was not answered

Section 15 of NI Act defines endorsement as Signing a Negotiable instrument, otherwise than as maker, on the back or face of the instrument to negotiate Signing the negotiable instrument by the true owner for transfering the rights thereunder Signing the negotiable instrument otherwise than as a maker, on the back or face of it or on a slip of paper annexed to the instrument for the purpose of negotiation None of these
Question was not answered

An endorsement made by pencil is Illegal Undesirable Permissible under Sec 15 of NI Act Invalid None of these
Question was not answered

Where there are many endorsement, until the contrary is proved, it will be presumed that they have been made Simultaneously Within a reasonable time In the order in which they appear on the instrument None of these
Question was not answered

A restrictive endorsement Prohibits further negotiation Constitutes the endorsee the agent of the endorser for a special purpose Vests the title in the endorsee in trust for or to use of some other person All of these None of these
Question was not answered

When an endorser adds the words Notice of dishonour waived such an endorsement is known as Restrictive endorsement Conditional Endorsement Facultative endorsement Irregular endorsement None of these
Question was not answered

What is inchoate instrument A negotiable instrument which is incomplete as to its date, amount and the name of the payee An instrument which is reported lost / torn An instrument of which the payment is stopped by the drawer Post dated / ante dated instrument None of these
Question was not answered

Stop payment instruction remains valid for a period of Three years 12 years Six months unless revoked by customer As long as the account is alive None of these
Question was not answered

There is an account in the name of X, Y & Z, with the operational guidelines operation by X & Y. Z countermands the cheque issued by X & Y. Then it should Not be accepted Instruction to be complied with Can be accepted after talking to X & Y over phone None of these
Question was not answered

To fix the liability of the drawer under Sec.138, the following conditions should be fulfilled The cheque should have been issued by the drawer against valid consideration The cheque should have been presented to the paying banking within its validity time The payee or the holder in due course, gives notice in writing to the drawer within 30 days of his receiving the information of dishonour from the bank The drawer should be given 15 days time from the date of receipt of the notice to make the payment All of these

Question was not answered

Maximum punishment for bouncing of cheques for want of funds is Imprisonment upto 2 years Imprisonment upto one year Fine of twice as the amount of the cheque a or c or both b or c or both
Question was not answered

To expedite the disposal of cheque dishonour cases, the following amendments were made in 2002. They provide that Summons can be issued through speed post or courier or any mode approved by court Banks return memo will form prima facie evidence of the fact of dishonour Every offence in this act is compoundable All of these None of these
Question was not answered

Protection to collecting banker, under section 131 is not available for Cheques Bank orders/ demand drafts Bills of Exchange Dividend warrants None of these
Question was not answered

Which of the following statement is wrong as per Section 22 of NI Act Days of grace are applicable only to usance bills Every usance bill is entitled for 3 days grace period No grace period is given if it is specifically mentioned in the bill Days of grace is available to all bills whether usance or demand None of these
Question was not answered

Public holidays are declared under section _____ of NI Act. 21 22 13 25 None of these
Question was not answered Public holiday under NI Act can be declared by

Central Government State Governments RBI a or b a or b or c