LCBF_B.

Com_Semester-1, Modern Banking Assignment-(I)

Loans
State True or False against each of the following 22 statements.
1. A guarantor is not liable for the loan amount in the event of default by the borrower.
2. If you already have a house, banks do not sanction housing loans.
3.Banks give housing loan only for houses which are ready for ossession.
!.Banks give housing loans only for "oint account holders.
#. $or getting a loan for ready%made house&aartment&flat, banks insist on valuation reort from their aroved
valuers.
'. (nly salaried ersons can get housing loans.
). *enerally, banks insist that the home&house urchased with the bank loan or financed by the bank is
mortgaged to the bank as security for the loan.
+. Banks insist on the insurance of the house urchased through housing loan.
,. -ome ta. benefits are available for ayment of interest and rincial for housing loans
1/. Longer the eriod of reayment for housing loan, larger will be the 01I.
11. 2redit checks allow rosective loan roviding bank to see the borrower3s entire credit record.
12. Banks do not sanction loans for overseas education
13. 4eayment of 0ducation loan generally commences after the comletion of education.
1!. Banks give loans only for the urchase of new cars.
1#. Borrower does not have to contribute any margin in a loan for urchase of car.
1'. 4eayment of car loan commence one year after the urchase of car through loan.
1). Banks do not ermit reayment of housing&car loans.
1+.Banks generally do not recover rocessing fees for car loans.
1,. Banks give overdrafts and loans to everyone who oens an account.
2/. Indian 5ationals who have secured admission to rofessional & technical courses through 0ntrance test &
selection rocess in India & abroad can avail of educational loan.
21. -econd educational loan is never sanctioned by the banks.
22. 6ravel e.enses are not included while working out educational loan amount.
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LCBF_B.Com_Semester-1, Modern Banking Assignment-(II)
7eosits
State True or False against each of the following 41 statements.
1. If we lace money with the bank in $i.ed 7eosit for a secific eriod, it can be withdrawn only at the time of
maturity and not before maturity
2. 4ation 2ard and 7riving License can be roduced by customers as documents to oen an account with a
bank under 38now 9our 2ustomer :892;35orms
3. An individual erson of any age can oen and oerate his savings bank account.
!. Banks do not ermit "oint savings accounts.
#. <hile oening a new account banks insist on the first deosit :credit into the account; in the form of cash.
'. =hotograh of the customer is an imortant re>uirement to oen a savings account.
). Banks do not ask for roof of residence while oening a savings bank account.
+. 1inors can oen current account with banks
,. =rimary Agricultural 2redit -ocieties are allowed to oen savings bank account.
1/. 6here are no restrictions on the number of credits in a saving bank account.
11. 6here are no restrictions on the number of withdrawals in a saving bank account.
12. Banks have a rule that savings bank account holder should kee secified minimum balance in the
account.
13. A erson having a savings bank account does not need a searate introduction to oen 6erm deosit
account in the same bank.
1!. 6here is no limit&restriction on the eriod for which a term deosit can be ket in the bank.
1#. 6he rate of interest offered by the bank on term deosit is generally higher than that offered in the saving
bank account.
1'. 5omination facility is available for term deosit accounts.
1). Banks cannot ay monthly interest on fi.ed deosits.
1+. 2urrent accounts offer higher interest rates than savings accounts.
1,. 6here is a minimum amount, as er each banks olicy, below which fi.ed deosit accounts may not be
oened.
2/. A senior citi?en cannot oen a deosit account "ointly with non senior citi?en.
21. -enior citi?ens are aid a higher rate of interest on their deosit accounts.
22. =roof of age is not re>uired for senior citi?ens oening a bank account.
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23. A che>ue is an order from a deositor telling the bank to ay a stated amount of cash to the erson or
business named on the che>ue.
2!. A bound book of che>ues with stubs is the deositor3s record of the checking account
2#. A deosit or a aying%in sli is a blank form listing the details of coin, currency, or che>ues to be deosited
and the amount of deosit :it accomanies a deosit;
2'. A ayee is the erson or business to whom a che>ue is written
2). 2he>ues written in encil are not accetable.
2+. 6he erson who signs a che>ue is called the drawer
2,. 6he bank on which the che>ue is written is the drawee.
3/. A "oint account is one which is oened and oerated by at least three and ma.imum twelve ersons
31. 2ommercial banks do not accet the standing instructions from deosit account hollers.
32. Banks issue bearer demand draft where ayment can be obtained on the bank3s counter.
33. $or customers, banks collect the checks drawn on other banks also
3!. Bill ay facility is e.tended to current account customers only
3#. 2he>ue becomes stale after one year from the date of issue.
3'. 6here is no e.iry date for travellers3 che>ues.
3). 2he>ue is a comaratively better mode of ayment than cash.
3+. If the balance in -avings Bank Account falls below the minimum level stiulated by banks, banks levy
enalty.
3,. An account ,once oened with a branch ,can not be shifted to any branch located in a differtent lace@
!/. 5omination is very imortant in the case of bank deosit
!1. A minor can oen a savings account to be oerated by himself
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LCBF_B.Com_Semester-1, Modern Banking Assignment-(III)
4emittances
State True or False against each of the following 11 statements.
1. Although 2he>ue and Bank draft are negotiable instruments and serve as means of ayment, a draft cannot
be issued by a customer
2.If a demand draft is lost by the urchaser of the draft , he will not be able to get the money from the bank
3. 6he urchaser of the demand draft must be an account holder of the bank.
!. 7emand draft is aid only after a week of date of issuance.
#. 7emand draft once urchased can not be cancelled.
'. 6he ayment of demand draft cannot be stoed by the urchaser
). (nce a demand draft is lost, the urchaser can get a dulicate sub"ect to certain conditions and ayment of
charges.
+. =ayee of the demand draft can get a dulicate demand draft if the original is lost.
,. $or housing loans, the bank ays the cost of stam fees.
1/. 1utilated currency notes can be e.changed only at rivate sector banks.
11. Bank recovers charges when the customer urchases travellers che>ues.
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LCBF_B.Com_Semester-1, Modern Banking Assignment-(IV)
2redit 2ards
State True or False against each of the following 2 statements.
1. Aaving an account with the card issuing bank is a must for alying for credit card of the bank.
2. 2redit cards allows certain credit eriod to the user to make ayments to the bank in resect of
urchases&ayments made with the card whereas in case of debit cards the card holders account is
debited&charged immediately.
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LCBF_B.Com_Semester-1, Modern Banking Assignment-(V)
*eneral
State True or False against each of the following 7 statements.
1. Banks only look after rich eole3s money@
2. 7eosit is the ma"or source of commercial bank funds@
3. Banks may come in all shaes and si?es, but the services that each bank offers % loans, accounts, and credit
% are generally the same.
!. <henever 4eserve Bank of India changes its interest ratesB all banks must change their interest rates on
deosits and loans.
#. 7eosits of customers in a bank are not safe as they carry a risk of non%ayment in the event of failure of a
bank.
'. 1utual fund is the fund in which the rovident fund contribution of emloyees is ooled and invested.
). 7eosit Insurance and 2redit *uarantee 2ororation of India rotects the banks against frauds.
LCBF_B.Com_Semester-1,8now 9our Banking C Assignment% 1
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A. Importance of savings and money
1. What is money? Who issues currency in our country?
2. What are the various denominations of currency notes available in our country?
B. Financial Planning
3. How can the goals of my life be achieved?
4. What is Financial Planning?
. What is savings?
!. How do " save?
C. Different savings products
#. "f " save$ where do " %ee& the money saved?
'. What is a ban%?
D. Different bank Instruments
(. "f " want to send money to my brother studying in )*+ can " use the ban% for that?
1,. What is the difference between a che-ue and draft?
11. Why is &ayment by che-ue safer than &ayment by cash?
E. Opening a bank Account
12. " want to de&osit money in a ban%. How do " do it?
13. " have some money in the savings account. How do " withdraw it?
14. How to withdraw cash through che-ue.
1. Filling in a che-ue.
1!. /i&s on how to write the che-ue and avoid fraud.
1#. "f a demand draft is lost$ what is the remedy?
1'. What is minimum balance and will a &enalty be levied if the balance in my account falls below the minimum level?
1(. 0an an account be shifted to any branch located in a different &lace?
2,. What is nomination and why it is im&ortant in the case of ban% de&osit?
21. What are the different charges collected in a savings ban% account?
22. What is a self o&erated minor account? Who can o&en such account?
23. What is a &ass boo%?
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F. Internet Banking
24. What is internet ban%ing?
2. What is the im&ortance of secrecy of maintaining my &assword for internet ban%ing and not disclosing it to anyone?
2!. What ha&&ens when one forgets his1her &assword?
2#. What is an +utomated /eller 2achine 3+/24?
2'. +re +/2 5an%ing facilities available 24 hours a day?
2(. What is P"6?
3,. Who can get an +/2 card?
31. How much amount can one withdraw from an +/2 at a time?
32. 0an one ma%e use of the online +/2 networ% of various ban%s in the country for cash withdrawal?
. Interest rates
33. What is the meaning interest rate?
34. +re there different interest rates and how are they calculated?
!. Introduction to bank loan account
3. What is a loan?
3!. 0an a ban% lend me money?
3#. How and when do " re&ay?
3'. What is inflation?
I. Bank Products and Procedures
1. What are fi7ed interest rate loans and floating interest rate loans and what is their im&act in a borrowing decision?
2. What is an 82" 38-uated 2onthly "nstalment4 and how it is calculated?
3. What is an +P9 3+nnual Percentage 9ate4? Why is +P9 im&ortant for a borrowing decision?
4. 2y friend recommends that " should go for a longer term 82"$ in which case my re&ayment burden will be less. His
reasoning is that longer 82" will lead to lower instalment amount and hence less burdensome?
. What is the difference between sim&le interest and com&ound interest and in the case a de&osit of 9s.1$,,,1: made
with a ban% for 3 years at 1,;$ how interest would be calculated?
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