Legal Aspects of Banking 1.

A bank should transfer not less than ____ % of its profit to the reserve fund before declaring dividend. 2. Annual return to be sent to RBI in respect of unclaimed deposits outstanding for_____ years. 3. RBI can carry out inspection of any bank under section 35 of ____________Act. 4. Max no. of partners in a partnership firm is ____ 5. Max no. of partners in a partnership firm in case of banking firm is ____ 6. Charges to be filed with the Registrar of companies within ___ days from the date of creation. 7. Ombudsman appointed under sec. 35 A of ___________________Act. 8. Banks can undertake Nomination facility as per Section 45 Z A to F of ____________Act. 9. Consumer Protection Act came in to existence in _____ year. 10. State the three level of consumer redressal forums _____ 11. District Forum entertains complaints in which the claim amount is up to Rs___ 12. A complaint can be filed within ___ years from the date on which the cause of action has arisen. 13. Indemnity / Guarantee are defined in ___________ Act? 14. Inchoate instruments means ____ 15. If no rate of interest is mentioned in the Promissory note intt @ ___ % p.a is to be paid. 16. Dishonour of cheques are defined in sec ____ of NI Act. 17. On the dishonour of a cheque the payee must give a notice to the drawer within____ days of the receipt of information from the bank 18. CRR defined in sec 42 of ____________________ Act. 19. SLR defined in Sec.24 of ____________________ Act. 20. If the aggregate of principal of a term deposit and interest is Rs.20000 or more then payment should not be made in cash as per _____________ Act. 21. SBI Act came in to existence in ____ year 22. Which legal document is required for settlement of deposit a/c if a person died without executing a will? 23. Issue of probate of a will is governed by which Act? 24. A probate issued by a District Court is valid outside the State in India if the value of the property outside the state does not exceed Rs . Prepared by S.V.Satyanarayana, Manager (Training), SBLC, Tirupati

25. Drawing of bearer drafts is restricted by ______ Act 26. The Negotiable Instruments Act allows 3 days of grace on--------------27. A Negotiate Instrument payable to order is transferred by 28. Pledge is defined in _____ Act 29. Hypothecation is defined in _______ Act 30. Mortgage is defined in _______ Act 31. RBI appoints Banking Ombudsman under ____ 32. No advance can be granted by a Bank against its own shares as it will amount to reduction of capital as per Section 20 of ..Act and Section 34 of .Act. 33. Banking is defined in Section 5 of Act. 34. Various forms of business which a bank can transact is defined in Section 6 of ..Act. 35. Bank has to publish balance sheet and profit and loss account every year as per Section 29 of ..Act. 36. RBI can carry out inspection of any bank also issue directives to bank in the interest of depositors asper Section 35 of __________Act. 37. RBI empowered to prescribe retention period of records of banks as per Section 45Y of ____________Act. 38. Banks can return of Paid cheques to customers as per Section45Z of ______________Act. 39. Charges to be filed with the Registrar of companies within 30 days from the date of creation as per Section 125 of ____________Act. 40. For borrowings from a bank, a resolution must be passed at a meeting by the Board of Directors as per Section 292 of __________Act. 41. If the borrowings of a company exceed the aggregate of the paid up capital and free reserves as well as against mortgage of property, the borrowings should be authorized in a general meeting of shareholders as per Section 293 of ________Act. 42. Minor cannot enter into a contract as per Section 11 of___________Act. 43. A promise to pay a time barred debt is valid as per Section 25 of ________Act. 44. Wrongful credit or payment made by mistake must be returned as per Section 72 of ___________ Act. 45. Indemnity is defined under Section 124 of __________ Act. 46. Guarantee is defined under Section 126 of __________ Act.

Prepared by S.V.Satyanarayana, Manager (Training), SBLC, Tirupati

47. Surety is not liable if Principal Debtor is released from liability as per Section 134 of ____________ Act. 48. Bailment defined in Section 148 of _________ Act. 49. Bailee should take reasonable care of goods bailed to him is as per Section 151 of ______________ Act. 50. Bailee is not liable for loss of things bailed if he has taken proper care as per Section 152 of _________ Act. 51. Notice of sale to be given to pledgor before sale of goods when he defaults to pay is as per Section 176 of ____________ Act. 52. Bank holidays are declared under Section 25 of _________ Act. 53. A minor can draw, endorse and accept a negotiable instrument so as to bind all parties except himself is as per Section 26 of __________Act. 54. Protection to Paying banker is as per Section 85 of _______ Act. 55. Protection to Paying banker if materially altered but does not appear to have been altered is as per Section 89 of ________ Act. 56. Protection to Collecting Banker is available under Section 131 of ________ Act. 57. Provisions of Tax Deduction at Source is as per Section 194 of __________ Act. 58. Death, insolvency _______________ Act. of a partner dissolves the partnership as per Section 42 of

59. A registered firm can sue third parties is as per Section 69 of ___________ Act. 60. Assignment is defined in Section 130 of _______________ Act.

Deceased Claims settlement 1. As per RBI guidelines, Deceased claims settlement should be made within .days 2. Model operational procedure for settlement of claims of deceased depositors has been brought out by.. 3. For settlement of claims up to Rs.50000/- is not required 4. Letter of Administration and Probate, when issued by a District Court, is valid within the State for any amount and valid throughout the country for amount up-to Rs. ----------5. Interest at ----------- rate is payable for the balances lying in Current Account in the name of deceased (individual depositors only), from the date of death to the date of payment 6. If a person is missing for more than -------- years, he is presumed to be dead for civil purposes as per Section108 of Indian Evidence Act 7. Whenever an addition or alteration is made to the will by an instrument, it is called -----------. It is a part of the will and witnessed. Prepared by S.V.Satyanarayana, Manager (Training), SBLC, Tirupati

8. Wills in India are governed by ---------------- which applies to Hindus, Jains, Sikhs, Buddhists and to anybody who is not a Muslim, Christian, Parsi or Jew. 9. The relationship between Banker and customer in case of deposits is .. 10. Affidavit is applicable only when the claim amount is above Rs.

Answers 1. 25% 4. 20 5. 10 2. 10 YEARS 6. 30 days 9. 1986 11. 20 lakhs 3. Banking Regulation Act 7. Banking Regulation Act 10. District Forum, State Commission, National 12. 2 years

8. Banking Regulation Act Commission 13. Indian Contract Act 15. 18% 18. RBI Act 21. 1955 25. RBI Act.

14. Incomplete Instrument 17. 30 days

16. 138 to 142

19. Banking Regulation Act 20. Income Tax Act 22. Letter of Administration 23. Indian Succession Act 26. Usance Bill of Exchange 28. Indian Contract Act 30. Transfer of Property Act 39 to 41. Companies Act 52 to 56. Negotiable Instruments Act. 59. Partnership Act 24. 10000/-

27. Endorsement & delivery 29. SARFAESI Act. 31. to 38. Banking Regulation Act 42 to 51. Indian Contract Act. 57. Income Tax Act. 60. Transfer of Property Act.

58. Partnership Act

Deceased Claims Settlement 1. 15 days 4. Rs.10000/7. Codicil 10. Rs.1 lakh 2. Indian Banks Association 5. Savings Bank 8. Indian Succession Act 3. Surety 6. 7 years 9. Debtor-Creditor

Prepared by S.V.Satyanarayana, Manager (Training), SBLC, Tirupati