Professional Documents
Culture Documents
Indian Institute of Banking & Finance: Jaiib
Indian Institute of Banking & Finance: Jaiib
Thursday 17
APRIL 08
T M C VASUDEVAN
01..Identify which one is treated as the
secondary business of a bank
a.. Accepting Deposit
b.. Lending Money
c.. Issuing Demand Draft
d.. Making Investments
02..Banking is defined in the Banking Regulation
Act.
• Primary function to accept deposit, lend and
invest.
• Secondary functions include opening of Letters of
credit , Issuing Bank guarantees, Demand Drafts
• Mail Transfers, Telegraphic Transfers, Collection
of instruments
• Executor Trustee services, Dealing in Forex
related transactions
03..G has approached the drawee bank
to handover the original cheque issued
by him and since paid to the debit of his
account.
A.. Bank to take permission of the Head
Office
B.. Bank to refuse
C.. At the most they can provide a Xerox
Copy only
D.. Bank to comply with the request.
04..Safe Deposit Locker facilities, accepting
Safe custody articles and so on
• Now bankers offer other services like
• ATM, Debit, Credit and other plastic cards
• Accepting Electricity, Telephone bills , and
extending services on behalf of the Service
providers
05.. As per the provisions of the Banking
Regulation Act, a banking company to file
within 30days of the close of each financial
year a return of unclaimed deposits.
A.. The above statement is not incorrect
B.. The above statement is incorrect.
C.. It is Reserve Bank of India Act
D.. Even the answer C is only partially
correct
06..Latest provisions of KYC and other procedures
to be adopted while making a person as their
customer, the banker has to take due care .
• Any lapse on the part of the bank may cause the
bank at a later stage.
• A banker should be able to justify beyond doubt
that his customer has become his customer after
following all the procedures, norms and he has
acted as a prudent banker.
07..Reserve Bank of India Act,1934 was
enacted to constitute the Reserve Bank of
India
• a.. To regularize the issue of Bank notes
• b.. To Regulate the issue of Bank notes
• c.. For directing the banks when they err
• d.. To Act as the banker of the Central
Government
08 ..Reserve Bank of India act was introduced
in 1934 and since then amended from time
to time to include the latest requirements.
• A provision was inserted by the Information
Technology Act,2000 to enable RBI to
make regulations for regulating payment
systems of banks and financial institutions
09.. RBI’s whole capital is held by the Central
Government.
.. The board has one Governor and not more
than 4 Deputy Governors appointed by the
Central Govt
.. RBI alone can issue and mange currency in
India as per the provisions of RBI act.
10.. RBI as regulator of banking sector is mainly by
virtue of the provisions of the Banking Regulation
Act
• RBI inspects banks and exercise supervisory
powers and may issue directions in public interest
• RBI also collects credit information and make
available the same
• RBI also imposes penalties wherever applicable
11.. Reserve Bank of India has so far not
issued currency notes of the denomination
of
a.. Rs.2/-
b.. Rs.200/-
c.. Rs.5000/-
d.. Rs.10000/-
12..In case of winding up of the banking
company, each depositor will have to make
the claim within 20 days of the winding up
order.
A.. True
B.. False
C.. The claims of every depositor deemed to have
been filed for the amount as shown in the books of
the banking company standing to his credit..
D.. It is not within 20 days but within a period of 15
days.
• 13.. Other than the Governor, Deputy
Governors of RBI, the other directors are
a.. Appointed
b.. Nominated
c.. Selected
d.. Elected
14..C has appointed M has the nominee for his safe deposit
locker and for savings bank P. Both nominations got
registered with the bank. Nomination form for locker not
signed by C. Both facilities are joint and operation
several.
a.. Operations in the locker will be affected
b.. Operations in the locker will not be affected
c.. On the death of C, P will be entitled to operate the locker
d.. The question of P does arise as he is part of the contract
15.. Making any false statement in any return,
balance sheet or other documents or
information given under the BR act (sec46)
punishable.
A.. True
B.. False
C.. Unless a fraud or forgery the court will
not interfere
D.. None of the above
105.. Banks generally issue Performance guarantees.
Advance payment , Deferred payment and Statutory
guarantees are also being issued by banks
Before issuing a bank guarantee, the bank will go through
the draft copy and after satisfying with the contents they
agree to issue.
Besides the documents for various types of securities,
appropriate counter guarantee also to be obtained..
Even if the guarantee is backed by 100% margin, the
counter guarantee/ counter indemnity has to be obtained on
a stamp paper to avoid complications later on.
106.. **Amount of guarantee, period,
protective clause, claim period , beneficiary
are some of the important aspects which are
to be clearly understood and put in place to
avoid complications at a later date.
.. If claim has come from the beneficiary
utmost importance to be given and due
action to be taken.
107..A guarantee given by the customer favouring
the bank in turn for the bank giving a guarantee on
behalf of the customer to a third party. It is more
or less a guarantee-cum-indemnity.
a.. Back to back guarantee
b.. Secondary guarantee
c.. Commitment of the client
d.. None of these
108..Reimbursing bank is
appointed by
A.. Negotiating Bank
B.. Confirming Bank
C.. Paying Bank
D.. None of the above
109.. The Red Clause LC and
Green Clause LC are one and
the same.
• A.. True
• B.. False
• C.. Green Clause LC is the
refinement of Red Clause
• D.. Both are ordinary LCs.
110..The Combined Transport
Bill is known as
A.. 30 days
B.. 30 days of his appointment
C.. 30 days of his taking charge of the post
D..30 days from the date of liquidation
136.. Life policy as security will involve
a.. Pledge
b.. Hypothecation
c.. Assignment
d.. Both a & c
137..A depositor wish to transfer his fixed deposit to
his brother’s name.
a.. Not possible since it is already printed on the
deposit receipt as Not Transferable
b.. Possible by way of proper endorsement
c.. Possible by closing the deposit before maturity
and with that open a new account in the name of
the depositor’s brother
d.. None of the above
138.. There are 6 types of Mortgages.
The Transfer of Property Act discusses
about the Mortgages.
The basic requirements include
An intention to create mortgage by the
owner of the property (mortgagor) in favour
of the Mortgagee (Creditor) to secure a debt
139..(1) The sale is ostensible and not real. (2) The mortgagee has the
right to receive rent on the property mortgaged (3) Mortgage is put
through in a Notified area (4) Private Sale possible- Identify the
mortgages
a.. Simple Mortgage/ English Mortgage/ Equitable Mortgage/ Anomalous
Mortgage
b.. Mortgage by way of Conditional Sale/ Usufructuary Mortgage /
Mortgage by way of Deposit of Title deeds / English Mortgage
c.. Registered Mortgage / English Mortgage / Equitable Mortgage /
Simple Mortgage
d.. Mortgage by way of Conditional Sale / Equitable Mortgage /
Usufructuary Mortgage / English Mortgage
140...Identify the correct mode of charge in respect of(1)
Vehicle(2)Book debts (3)Gold ornaments (4) Flat purchase
(5) National Savings Certificate
a.. Pledge / Hypothecation / Hypothecation/ Mortgage/
Pledge
b.. Hypothecation / Assignment / Pledge / Mortgage/Pledge
c.. Pledge / Mortgage / Hypothecation / Assignment/
Hypothecation
d.. Hypothecation/ Hypothecation/Pledge/Mortgage/Pledge
141..As per the provisions of the Registration
Act,1908, a registered document operates,
not from the date of its registration , but
from the time of its execution. Thus a
Mortgage document executed earlier,
though registered later than another, has
priority over the documents executed later
142.. The limitation period for filing a suit for sale of
mortgaged property is 12 years from the date the mortgage
debt becomes due.
.. The limitation period for filing suit for foreclosure is 30
years form the date the money secured by mortgage
becomes due..
.. Foreclosure means the loss of the right possessed by the
mortgagor to redeem the mortgaged property.
.. Under the Mortgage by way of conditional sale, the
mortgagee can sue for foreclosure, but not sale of the
property.
143.. A private Ltd company has availed finance by
way of Simple Mortgage. Then there
a.. Will be two types of Registrations
b.. One with the Registrar of Companies
c.. Another with the Sub Registrar of
Assurances in whose jurisdiction the
mortgaged property is situated
d.. All of these
144.. Hindu Undivided family is governed by
personal laws. In Bengal and other parts of
erstwhile Bengal province, a Hindu undivided
family is governed by Dayabhag Law in other
parts of India, it is governed by Mitakshara Law.
While lending to the HUF business banker has to
be very careful in protecting the interest of the
bank
145.. Trusts, Clubs, Co-operative societies ,
Schools, Colleges etc., lending has to be
properly understood then to be given.
.. The appropriate documents, such as deed,
agreements, bye laws, resolutions to be
carefully gone through and then proceed.
146.. A Limited Company applied for Working finance on 12th of June.
Received the sanction letter on 10th of August and executed the loan
documents on 20th of August. Availed the finance on 13th of September
only. The charge has been registered with the Registrar of Companies
on 16th of September.
a.. The Registration is in order
b.. The Registration is not in order
c.. The Charge should have been filed within 1 month from the date of
sanction
d.. Since the finance has been taken only on 13th of September, time to be
calculated from that date to file the charge
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