1. In which year was the Banking Regulation Act passed?
Correct : A. 1949
2. On which rate bases, overnight money is needed by bank from RBI?
Correct : A. MSF
3. ____________________are excluded from the Banking Regulation Act 1949.
Correct : B. Primary Agricultural Credit Society and cooperative land mortgage banks
4. In which year, the Banking Regulation Act was amended to include cooperative banks under its
purview by adding the Section 56.
Correct : B. 1965
5. The Reserve Bank of India is given the responsibility of regulating and supervising the _________
under Reserve Bank of India Act, 1934.
Correct : D. Non-Banking Financial Companies
6. In the case of a banking company incorporated outside India balance-sheet and profit and loss
account shall be signed by _________ of the company.
Correct : C. Manager or agent of the principal office
7. Copies of balance-sheets and accounts to be sent to____________.
Correct : C. Registrar
8. Who has the power to give directions to other Banking Companies?
Correct : A. RBI
9. Which section of Banking Regulation Act 1949 relates with the Power of Reserve Bank to issue
directions in respect of stressed assets?
Correct : B. Section 35AB
10. Change of name by a banking company only happens with the approval of __________?
Correct : A. RBI
11. Form of Balance sheet of banking Companies includes Reserve & Surplus in
Correct : B. Schedule 2
12. Form of Balance sheet of banking Companies includes Fixed assets in
Correct : C. Schedule 10
13. Contigent Liabilities in case of banking Companies are included in_________.
Correct : D. Schedule 12
14. Banking company means any company which transacts the business of ________.
Correct : A. Banking only
15. Managing agent includes
Correct : D. All of the above
16. Regional rural bank means a regional rural bank established under section 3 of the Regional Rural
Banks Act, __________.
Correct : C. 1976
17. Reserve Bank means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act,
_________.
Correct : A. 1934
18. In case of banking company incorporated outside India, aggregate value of its paid-up capital and
reserve shall not be less than Rs. __________.
Correct : C. 15 Lakhs
19. In case of an Indian banking company, the sum of its paid-up capital and reserves if it has places of
business in more than one State shall not be less than
Correct : A. 5 Lakhs
20. According to Sec. ______, a banking company is not permitted to pay directly or indirectly by way of commission, brokerage, discount or remuneration on issues of its shares in excess of 2½% of the paid-up value of such shares.
Correct : D. 13
21. FATCA stands for
Correct : A. Foreign Account Tax Compliance Act
22. As per the provisions of which act all financial institutions have to maintain a record for all form of
transactions?
Correct : D. PMLA Act, 2002
23. Which of the following Act refers to the acquisition and transfer of the undertakings of certain
banking companies?
Correct : C. Banking Companies (acquisition and transfer of undertakings), 1970
24. Which of the following is the clearing agency for Government securities?
Correct : C. CCIL
25. Banks are required to maintain SLR under which act?
Correct : A. Section 24 of the Banking Regulation Act
26. It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against
current
Correct : B. Statutory
27. In India, the law regulating the Negotiable instruments are
Correct : C. Negotiable Instruments Act 1881
28. In Negotiable Instruments Act 1881, which section defines promissory note?
Correct : D. Section 4
29. A drawer in the bill of exchange can also be a
Correct : B. Payee
30. The rate at which RBI discounts approved bill of exchange is
Correct : D. Discount rate
31. Who is primarily liable on a promissory note?
Correct : B. Maker
32. How many parties are mainly involved in Promissory Note?
Correct : C. Two
33. In a bill of exchange, drawee is the person
Correct : B. on whom the bill is drawn
34. ------------ is a dead cheque
Correct : B. Stale cheque
35. Name the person to whom the amount of the cheque is payable?
Correct : C. Drawee
36. Discounting of bills of exchange is
Correct : C. Neither clean advance nor secured advance
37. Expand NEFT
Correct : A. National Electronic Fund Transfer
38. A negotiable instrument drawn or make in India is called_______ instrument.
Correct : A. Inland
39. The following one is a negotiable instrument, negotiable by usage or custom
Correct : D. Share warrant
40. The most important feature of a negotiable instrument is
Correct : D. Both A & B
41. The following one is absolutely essential for a special crossing.
Correct : D. Name of a banker
42. Cheque is payable on
Correct : A. Demand
43. The reasonable period allowed in India for the presentation of a cheque is
Correct : B. 3 months
44. Section 6 of the Negotiable Instruments Act defines ___.
Correct : A. Cheque
45. If a Minor draw, indorse, deliver and negotiate Negotiable Instruments, it binds __
Correct : A. All the parties except minor
46. Dishonour of Negotiable Instrument by Non Payment is covered under section in Negotiable
Instrument Act 1882…
Correct : C. Section 92
47. Which of the following section in the Negotiable Instruments Act deals with the Bill of Exchange?
Correct : A. Section 5
48. Which of the followings are not the Negotiable Instruments as defined by the Statute…
Correct : A. Banker’s Note
49. Which of the following is/are true about the Negotiable Instruments Act, the Promissory Note is … A) Definition of Promissory Note is given in section 8 of the Negotiable Instrument Act B) Containing an unconditional undertaking C) To pay a certain sum of money only to a specific person or the bearer D) The seller is bound to accept the promissory note E) A document was written and signed by the payer/maker
Correct : B. (B), (C) and (E)
50. The Negotiable Instruments (Amendment) Bill, 2017 inserted a provision allowing a court trying an offence related to cheque bouncing, to direct the drawer (person who writes the cheque) to pay interim compensation to the complainant. The interim compensation will not exceed ___% of the cheque amount?
Correct : D. 20%
51. Which of the following is/are true about bill of exchange? A) A bill of exchange requires in its inception two parties. B) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee. C) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. D) Definition of ‘Bill of Exchange’ is mentioned in Section 6 of the Negotiable Instrument Act.
Correct : C. (B) and (C)
52. If the holder of a bill of exchange allows the drawee more than ___ hours, exclusive of public holidays, to consider whether he will accept the same, all previous parties not consenting to such allowance are thereby discharged from liability to such holder.
Correct : D. 48
53. Which of the following is/are false about Dishonour of Cheque? A) Section 138 defines Dishonour of cheque for insufficiency, etc., of funds in the account. B) Such cheque has been presented to the bank within a period of twelve months from the date on which it is drawn or within the period of its validity, whichever is earlier C) Imprisonment for such offence may be extended for period of five year D) Section 138 apply unless – the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
Correct : B. (B) and (C)
54. Which bank have given the instructions to the commercial banks regarding the immediate credit of
outstation cheques?
Correct : A. Reserve Bank of India
55. A cheque dated subsequent to the date of its issue is
Correct : A. Post dated cheque
56. Dishonour of cheque by a banker without any justifiable reason is called
Correct : D. Wrongful dishonour of cheques
57. The relationship between a banker and customer is............
Correct : C. Primarily that of a debtor and a creditor
58. In executing the standing instructions, there exists a relationship of......
Correct : D. Agent and Principal
59. To constitute a person as a customer.......
Correct : C. There must be some sort of an account
60. The best procedure for opening an account in the name of a minor X and the guardian Y would be
under the style.............
Correct : C. 'y' in trust for X
61. The most undesirable customer is.......
Correct : D. An undischarged bankrupt
62. The primary relationship between a banker and customer starts from the time.
Correct : B. when customer opens account
63. The primary relationship between banker and customer is a ------------------ relationship.
Correct : B. Contractual
64. Which one of the following is the most important relationship between banker and customer.
Correct : A. Debtor and Creditor
65. When customer's account overdrawn or when customer has taken loan from banker, then the
customer.
Correct : C. Debtor
66. When banker received deposits from the customer, then the banker becomes -------------- of the
customer.
Correct : C. Bailee
67. It is a ----------------- obligation of a banker to honour the cheques of the customer drawn against
current account.
Correct : B. Statutory
68. Special damages refers to damages payable by a banker to his customer for the actual ------------- loss
suffered by customer.
Correct : A. Financial
69. ---------- is the right of a person to retain the property of another person in his possession untill the
debt from that owner of that property is repaid.
Correct : A. Lien
70. The bank can consider ------------------ lien as their protection against loss on loan or overdraft which
was given to its customers.
Correct : A. Special
71. The right of set-off customers account can be exercised only by a-----
Correct : C. Banker
72. The rate of interest charged for the loan by the banker compared to overdraft and cash credit is
generally.
Correct : B. Low
73. The services rendered by a banker as an agent of his customers are called
Correct : B. Agency services
74. The written instructions given by the customers to banker to perform the services like collection and
payment of money is noted down in
Correct : B. Standing Instructions Book
75. A -------------- is a person who is entrusted with some property by the settler or the author of the trust
for the benefit of another person called beneficiary.
Correct : D. Trustee
76. Services rendered by a banker not only to his customers, but also to the general public are called as
Correct : C. General utility services
77. Name the person to whom the amount of the cheque is payable?
Correct : C. Drawee.
78. A banker should not refuse payment of a cheque if ________.
Correct : D. the cheque bears more than two endorsements
79. The paying banker can get protection for a materially altered cheque provided __.
Correct : D. Both A and B
80. The written instructions given by the customers to banker to perform the services like collection and
payment of money is noted down in
Correct : B. Standing Instructions Book
81. The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss
of
Correct : B. True owner of the cheque
82. The document which can be used only for making local payment is........
Correct : C. A banker's cheque
83. Not negotiable crossing is a warning to the...........
Correct : C. Holder
84. To get statutory protection, paying banker must make:
Correct : C. Payment in due course
85. Which of the following Committee recommended to form a new category of Bank Called Payment
Banks?
Correct : C. Nachiket Mor Committee
86. Which of the following permit cheque operation?
Correct : D. Savings bank accounts and current accounts
87. What happens if a crossed cheque is presented for payment?
Correct : A. It can be paid only through a banker
88. The paying banker is protected under following SECTION for payment of cheque with forged signature
of the drawer.
Correct : D. no protection is available
89. Which banker gets protection under section 85 of Negotiable Instrument Act, 1881?
Correct : B. Paying banker.
90. Protection to the Paying Bank in case of alteration in a cheque is available under.
Correct : B. Sec 89 of NI act
91. The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer.
Correct : A. True
92. The paying banker should pay the cheque when there is restriction imposed on the payment by the drawer or by the law.
Correct : B. False
93. In case of sufficiency of funds in the account of the drawer which can be properly used to pay the
cheque, the banker must pay the cheque when required to do so.
Correct : A. True
94. The payment should be made when the cheques are presented for payment within a reasonable time after being drawn and during banking hours.
Correct : A. True
95. Section 45 of the Negotiable instruments Act, has imposed upon the banker the obligation to honour
customers cheques.
Correct : B. False
96. How many Payment banks were approved by RBI in 2015?
Correct : B. 11
97. How many branches of Payment banks must be in the unbanked rural area?
Correct : A. 25%
98. Which of the following activities cannot be undertaken by a Payments Bank?
Correct : C. Lending Money
99. Under what section of the Banking Regulation Act, 1949 the payments banks are licensed?