01.Bank license is issued by Reserve Bank of India based on the provisions of A.. Banking Regulation Act B..

.. Reserve Bank of India Act C.. Both a & b D.. Neither Banking Regulation Act nor Reserve Bank of India Act

02.. Reserve Bank of India Act,1934 was enacted to constitute the Reserve Bank of India a.. To regularize issue of Bank notes b.. To Regulate the issue of Bank notes c.. For directing the banks when they err d.. To consolidate and amend the law relating to banking

 03..Identify the Act which puts restrictions on the shareholding, directorship, voting rights and other aspects of banking companies. a.. Companies Act b.. Banking Regulation Act C.. Reserve Bank of India Act D.. All the above mentioned Acts

 04..Identify which one is not part of the Banking Regulation act a. To regulate business of banking companies b. To control over the management of banking business c. To wind up a banking business d. To keep reserves for securing monetary stability in India

 05..Private banks are governed by the Companies Act. In respect of their business of banking and by the RBI Act for their constitution. a. The above is not incorrect b. The above is incorrect c. For Constitution, Companies Act and banking business provisions of both Banking Regulation Act and Reserve Bank of India Act d. There is no role for Companies Act

06..Other than the Governor, Deputy Governors of RBI, the other directors are a.. Appointed b.. Nominated c.. Selected d.. Elected

07..Reserve Bank of India has the powers to issue currency notes in denominations of a.. Rs.2/b.. Rs.50/c.. Rs.10,000/d.. All the above

08..The co-operative banks are under the regulatory purview of the Reserve Bank of India. This is due to the amendment to a . Reserve Bank of India Act b . Cooperative Act C . Banking Regulation Act d . Both a & b

09..The amount of deposit with RBI by foreign banks to be kept in a.. Cash b.. Unencumbered approved securities c.. Partly in both d.. None of the above

10..Which one is in correct a.. Banking companies are permitted to have only ordinary shares b. Preference shares issued before 01.07.1944 can be allowed to continue c. Banking companies are not permitted to have equity shares d. Banking companies are not permitted to have special preference shares

11..As per the provisions of the BR act, a.. No dividend is payable until all capitalized expenses are completely written off. b.. This also includes preliminary expenses and share selling commission c.. Both a & b are correct d.. Both a & b are incorrect

12..A banking company can not have this person as the head of their institution a.. Managing Director b.. Chairman c.. Managing Agent d.. Whole Time Chairman

13..As per the provisions of the Reserve Bank of India Act, the Whole time Chairman or the Managing Director of a banking company to hold qualification shares of minimum 50. a. It is not 50 but 100 b. They need not hold any qualification shares c. They need to have minimum qualification shares of 10 as per the provisions of Banking Regulation act and not RBI act d. None of these

14.. Rajkumar has nominated his brother Radhakrishn as the nominee for his Savings Bank account. Nominee will not be entitled to get the money on this account from the bank a.. As long as Rajkumar is alive b.. If Rajkumar is closing the said account. c.. If Rajkumar has changed the nomination in some ones favour d.. In all the above cases

15..identify the odd one (Banking ombudsman) a.. Observance of Reserve Bank directives on interest rates b. Non-acceptance of application for loans without assigning valid reasons to the applicant c. Non-issuance of Demand Drafts to non-customers d. Non-adherence to prescribed working hours by branches

16..Every year a sum equivalent to not less than 15% of profits to be transferred to the reserve fund by a bank. Such transfer to be made not before any dividend is declared. a.. Yes b.. No c.. Partly true d.. Fully in correct

17..For a non scheduled bank cash reserve balance should not be less than 20% of the demand and time liabilities as on the last Friday of the second preceding fortnight. a.. True b.. False c.. It is not 20% but 30% d.. These banks need not have any cash reserve

18.. A bank has to submit a Friday statement to RBI . The said Friday(18th of a particular month) has not been declared as holiday under the Negotiable Instruments Act, but the previous working day was declared . Then the statement to be prepared as on a.. 16th of that month b.. 17th of that month c.. 18th of that month d.. 20th of that month

19..As per the provisions of the BR Act, a return regarding the assets maintained in India to be submitted to RBI, within 14 days from the end of every quarter. a.. Not 14 days b.. It is 20 days c.. It is 15 days not 20 days d.. One month

 20..A banking company need not submit copies of balance sheet and auditors report to the Registrar of Companies. a. Yes. b. No C. The banking company has to submit to Registrar of Companies also D.. Since they are submitting to RBI there is no need to submit to Registrar Companies separately

21..Foreign banks (banking companies incorporated outside India) operating in India have to display in a conspicuous place in their principal office a copy of the last audited balance sheet and profit and loss account. This has to be done not later than a.. The First of July of the year in which it carries on business b.. The First Monday in August c.. The First Friday in October d.. The Last Friday in November

22..It is not mandatory to give a copy of the report to the banking company. a.. Inspection report b.. Scrutiny report c.. Search report d.. All these reports

23.. To order amalgamation of two banking companies under the provisions of Companies Act rests with a.. Central Government b.. Reserve Bank of India c.. Central Government with the consultation of Reserve Bank of India d.. Company Law Board

24..Authroisation under the law for a debtor to postpone payment of dues for a specified time a.. Holiday period b. Gestation period c.. Moratorium d.. None of these

 25..State Bank of India Chairman and Managing Director are appointed for a period of 7 years. A.. For Chairman it is 7 years, but for MD it is 5 years B.. For both it is not to exceed 5 years C. For both it is not to exceed 6 years D.. For Managing Director it is 7 years but for Chairman it is only 5 years

26..Regional Rural Bank cannot a.. Open deposit accounts b.. Lend to Agriculturalists c.. Extend Credit to an Artisan d.. None of the above

27..Three copies of balance sheet and other connected documents along with the auditors report to be submitted to Reserve Bank of India by a Co-operative bank within a.. 6 weeks b.. 3 months c.. 6 months d.. 9 months

28..A cheque has been received by the drawee bank in local clearing. At that time the account has clear balance to meet the cheque amount. However, it has been observed that the Words and Figures differ. The cheque contained Rs Twenty two thousand two hundred and twenty two in words but in figures read as Rs.2222/- Bank has to a. Make the payment b. Return the instrument c.. Make payment for only Rs22222/- as per words d.. Act as a prudent banker

29.. A cheque has been received in clearing on 29th of this month bearing the date as 27th of two months ago. The cheque to be returned on the grounds a. Stale Cheque b.. Ante Dated Cheque c.. Should not be returned d.. Post Dated

 30.. A cheque has been received for collection. The Collecting banker has given his necessary certificates on the reverse of the cheque, which had more than two endorsements. a. It is the responsibility of the collecting banker to verify the regularity of endorsements b. It is not the responsibility of the paying bank to verify the regularity of endorsements c.. The Collecting bank as well as the paying bank are responsible to verify the regularity of endorsements d.. None of the above

31.. A cheque has been received by the drawers banker. On scrutiny it has been observed that the word bearer was altered into order again re-altered into bearer. The drawer has signed only the cheque. a.. The drawee bank to make payment. b.. The paying banker will be in order to return the same with a reason Material alteration requires drawers authentication c.. The above is not a material alteration. d.. The responsibility lies with the collecting banker and not the paying banker.

 32.. A collecting banker has collected an uncrossed cheque for his customer. However, before collecting he has affixed his banks crossing seal (using the rubber stamp) .The banker a.. Will get protection b.. Will not get protection c.. Will get protection since the act allows a special crossing also d.. Will not get protection since the original cheque was uncrossed

33..A cheque has been collected by Bank A. But the cheque bore the crossing in favour of Bank B. a.. The paying bank can make the payment since it has been collected by a bank. b.. The drawee bank not to honour c.. The Collecting bank is not in order in collecting such a crossed cheque d.. Both b & c

34.. Customer G of a bank has lost the Demand Draft purchased. The bank issued a duplicate draft on G executing an indemnity and completing the other formalities. G is known as a.. Surety b.. Guarantor c.. Indemnified d.. None of these

35.. IN an indemnity the risk is subsisting whereas in a guarantee the liability is contingent. a.. The above is correct b.. The above is incorrect c.. For indemnity the risk is contingent and for guarantee the liability is subsisting d.. For both risk contingent and liability subsisting

36.. A bank guarantee has been issued by Bank K on behalf of its customer L in favor of R. The guarantee amount being Rs.2.75 lacs. When the claim received by Bank K from R, the bank has a balance of Rs.3.28 in the current account of L. Then the bank K a.. Can debit Ls current account with the claim amount and make a demand draft in favour of R and send. b. Before doing so Bank K to consult L and take his permission. c. Bank K to discuss with R d. Can not debit the current account of L but extend an advance in favour of L and then make the payment

37.. A bank guarantee has to be paid on invocation by the beneficiary. At that time the bank has a balance of Rs.3 lacs (Fixed deposit) as collateral security and not substantial balance in the current account of the party. The claim amount is Rs.5 lacs. a.. The bank will close Fixed deposit and make payment b.. For the balance amount the bank can request the beneficiary for some more time c.. The bank need not honour, since the balance of the collateral security will not be sufficient to meet the claim amount d.. None of these

38.. The bank in the Beneficiary / Exporters country through which the LC is advised to the beneficiary is called Advising bank. The other name for advising bank is a.. Notifying bank b.. Nominated bank c.. Paying bank d.. Notified bank

39..Anticipatory Letter of Credit means a.. Red Clause LC b.. Blue Clause LC c.. Green Clause LC d.. Both a or c

40.. A bill dated 12th of last month accepted 27th of last month for 75 days is known as a.. At sight bill b.. On demand bill c.. After sight bill d.. None of these

41.. A customer has tendered an outstation cheque to his banker who accepted on collection basis. After sending the cheque for collection, at the request of the customer the bank has purchased the same. Then the relationship between the banker and customer would be a.. Agent Principal b.. Creditor Debtor c.. Debtor Creditor d.. Principal - Agent

42.. A cheque purchased has been returned with the reason Funds insufficient. Then the bank which advanced finance has to a.. Recover the finance from the drawer b.. Recover the finance from the drawee c.. Recover the finance from the payee d.. Forego the advance lent

43..Life policy as security will involve a.. Pledge b.. Hypothecation c.. Assignment d.. Both a & c

44.. A bank has considered a loan on their Fixed deposit. The deposit holder is M and the loan has been given to N. Then N would give a.. Letter of Pledge b.. Third Part Letter of Pledge c.. Demand Promissory Note d.. Duly discharged Fixed deposit receipt

45..XYA (P) Ltd company has been sanctioned a Supply Bills limit of Rs.7 lacs. a.. The Charge need not be registered with the Registrar of Companies since Supply Bills is treated as an unsecured finance b.. The Charge has to be registered c.. The Charge has to be registered since Book debts are considered as Collateral security d.. No connection with the Registrar of Companies since the bank only gives the finance

46.. A depositor wish to transfer his fixed deposit to his uncles 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 depositors uncle d.. None of the above

47..As part of documentation the Irrevocable Power of Attorney is also insisted in respect of a.. Life Policy Loan b.. Fixed Deposit Loan c.. Clean OD d.. Supply Bills Finance

48..(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

49..Identify the correct mode of charge in respect of(1) Vehicle loan,(2) Cash Credit, (3)Gold ornaments loan & (4) Flat purchase. a.. Pledge / Hypothecation / Hypothecation/ Mortgage b.. Hypothecation / Assignment / Pledge / Mortgage c.. Pledge / Mortgage / Hypothecation / Hypothecation d.. None of the above

50.. A 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

51..A property mortgaged (Equitable mortgage) is in a village which is not a notified area. The bank branch which gave the loan is in a Notified area. If the bank wish to file a suit, then a.. Suit has to be filed in the district headquarters of the bank branch b.. Suit to be filed with the Mortgage court c.. Such loan not possible (Property in a different area and the lending bank in another area) d.. None of these

52.. Which one is possible a.. A hypothecation can become pledge b.. Pledge and third party pledge there is no difference c.. A mortgage is applicable to Vehicle as security d.. For transfer of goods assignment is used

53.. Which one does not attract registration as per the provisions of the Companies Act, with the Registrar of Companies. a.. A charge on any book debts of the company b.. A charge on called capital of the company c.. A floating charge on the undertaking or any property of the company including stock-in-trade d.. A charge on a copy right

54..Who should maintain the Index of Register of Charges as per the Companies Act. a.. Registrar of Companies b.. Lending Bank c.. Creditor d.. Debtor Company

55.. A Limited Company applied for Working finance on 23rd of July. Received the sanction letter on 12th of August and executed the loan documents on 18th of August. Availed the finance on 3rd of September only. The charge has been registered with the Registrar of Companies on 15th 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 3rd of September, time to be calculated from that date to file the charge