Model Online Promotion Test For Bank Officers On Banking Law & Practice
This Test is on Banking Law and Practice in India. Questions on various Fundamental Laws �which are of daily relevance are included. Please take Quiz Password by e Mailing to [email protected] Com your full particulars like Name,Age,Place of Work/Study,Designation/Course,Phone/Mobile No and Address N Rangarajan Senior Manager of a Public Sector Based Bank @ Trichy
- 1.Mr A and B signed a joint and several promissory note to avail a Loan from Bank. Within a month the document is getting time barred. Mr A alone signs the revival letter and Mr B refuses to sign the RL.What is the position of liability of the borrowers?
- A.
If a suit is filed before the document expires, then Both A and B are liable.
- B.
If the suit is filed after the expiry of limitation, then A alone is liable and Bank cannot proceed against B
- C.
Once RL is not signed by both borrwers, the Bank has no option than to write off.
- D.
A & B both correct
- E.
None of the above
- 2.What is the type of lease under which the lessee does not get the benefit of depreciation?
- A.
Financial Lease
- B.
Rental Lease
- C.
Optional Lease
- D.
Dry Lease
- E.
Usufructuary Lease
- 3.A mortgage deed was ezxecuted on 08.01.2004 and a simple mortgage deed was registered by Canara Bank on 10.01.2004 and subsequentltly an equitable mortgage was created by Syndicate Bank on the same property on 10.01.2004. Which mortgage has priority?
- A.
Depends upon Court Judgement
- B.
Priority of Mortgage is decided based on the date of execution.Hence Canara Bank will have priority
- C.
EM is superior as it is widely followed in India
- D.
None of the above
- 4.Bank Branch is at Mumbai. The registered Office of the company is at Chennai. The factory of the company is at Hyderabad.The property is situated at Bangalore.Equitable Mortgage of the property can be created
- A.
Mumbai to have better control
- B.
Bangalore as the property is situated there
- C.
Chennai as the company's registered office is situated there
- D.
Hyderabad
- E.
Any Notified Centre in India
- 5.The relationship between a Remitting Customer and Banker in case of TT
- A.
Consumer and Banker
- B.
Agent and Principal
- C.
Principal and Agent
- D.
Trustee and Beneficiary
- E.
All the above
- 6.
- A.
Bankers Book Evidence Act
- B.
Civil Procedure Code
- C.
Banking Regulation Act 1949
- D.
Indian Contract Act
- E.
Banking Comapnies Acquisition and Transfer of Undertaking Act 1970
- 7.What is the effect of Non Registration of Charge on the assets of a company by the financing Bank?
- A.
Bank will be an unsecured creditor
- B.
Those creditors who have registered their charges will get priority
- C.
Only the mortgage is supreme . In such case registration of charge is not required
- D.
In case of pledge of goods, registration is not required.
- E.
A,B and D Correct
- 8.Which Act defines Hypothecation?
- A.
SARFAESI Act
- B.
It is only Banking Convention.
- C.
Sale of Goods Act
- D.
Indian Contract Act
- E.
Transfer of Property Act
- 9.A and B are holders of joint deposit. At their request, C and D are added as additional names. After some time all the four request by a signed letter, to cancel the names of A and B. What is your reaction?
- A.
Can be acceded.
- B.
Will be declined as any one of the original names should be maintained.
- C.
Will refer to Regional Office Law Department.
- D.
Additon of Name is permitted but deletion is not permitted as per Banking Codes and Standards Board of India guidelines.
- E.
All the above
- 10.A guarantor clears the liability of Pricipal Borrower in the Bank. He claims the securities lodged with the Bank.What is your reaction?
- A.
If the secuirities are the property of guarantor, it can be parted with.
- B.
All securities can be given to the guarantor in the right of subrogation.
- C.
The right of substitution permits the same
- D.
If the securities are in the name of borrower,we will refer to higher authorities.
- E.
Can be released against indemnity.
- 11.Right of set off cannot be exercised by the Bank in respect of
- A.
Regular Debt
- B.
Time barred Debt
- C.
Revived Debt
- D.
Ascertained and quantifiable debt
- E.
Contingent Debt
- 12.What is the limitation period for exercising the right of lien?
- A.
3 years from the date of Demand
- B.
12 years from the date of Cause of Action
- C.
30 Years for Foreclosure
- D.
Right of Lien is not barred by Limitation
- E.
None of the above
- 13.Mr A has availed TOD against Term deposit. Later he is adjudged as insolvent.A claim is received from the Official receiver. In this case the Bank will,........
- A.
Pay the full amount of Deposit to Official receiver, as this is a claim from court of law.
- B.
Adjust the the TOD and pay balance amount to depositor, who will will in turn pay the official receiver
- C.
Pay the full amount of deposit to the depostor.
- D.
Adjust the TOD and Pay balance amount to Official Receiver
- E.
All the above may be applied on a case to case basis
- 14.Which one of the following is not an actionable claim?
- A.
Term Deposit Receipt
- B.
Life Insurance Policy
- C.
Book Debt
- D.
Overdraft availed at Bank
- E.
None of the above
- 15.Clayton's Rule will be applicable to
- A.
All running accounts like TOD,CC,Bills and PC
- B.
Non Fund Based Facility
- C.
Term Loan
- D.
Demand Loan
- E.
All the above
- 16.Safe Deposit Locker Service can be provided to Minors above the age of 12 and up to 18 (Special Minors)
- A.
True
- B.
False
- 17.As per Hindu Succession Act amendment in September 2005, Who gets coparcenery rights?
- A.
All Major Male Members.
- B.
The daughters of coparceners are also getting coparcenery rights
- C.
All female members in the family
- D.
Staus quo continues as per old provisions
- E.
None of the above
- 18.Nomination facility is available for Loan accounts under Banking Services
- A.
True
- B.
False
- 19.Partners have ----------------------- liability as per Section ------------- of Indian Partnership Act.
- 20.A minor can be admitted to ____ ________ of a Partnershio firm
- A.
The Capital
- B.
The Liabilities
- C.
The Responsibilities
- D.
The Deed
- E.
The Benefits
- 21.Under Which Act RBI can conduct inspection of Banks?
- A.
Sec 46 of Banking Regulation Act
- B.
Sec 35 of Banking Regulation Act
- C.
Sec 31 of RBI Act
- D.
Sec 26 of Banking Regulation Act
- E.
None of the above
- 22.An industrial company registered for not less than five years have accumulated losses at the end of any financial year , equal to or exceeding its entire net worth.This is known as
- A.
Erosion of Net Worth
- B.
Negative Net Worth
- C.
Break Even
- D.
Sick Industrial Company under SICA Act 1985
- E.
Company to be put under nursing / rehabilitation programme
- 23.What type of action can be brought under Consumer Protection Act against the Bank?
- A.
Deficiency of service
- B.
Deficiency of service that is fully paid for
- C.
Deficiency of service, even if it is partly paid for
- D.
Any delay in service
- E.
Not Granting Loan in Time
- 24.Why Banks insist for Regd memorandum nowadays?
- A.
It is mandatory
- B.
To increase the revenue of Govt
- C.
To reflect the Bank's name as mortgagee in the Encumberance certificate
- D.
To protect the interest of the Bank
- E.
A & C above
- 25.How will you elongate the limitation period of equitable mortgage?
- A.
By Supplemental Narration
- B.
By Redeposit of Title Deeds
- C.
By taking endorsement in the reverse of F 379
- D.
By security confirmation letter
- E.
By A & B Above
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