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Latest Legal and Regulatory Aspects of Banking Exam Question (Objective Questions), MCQ in English
Subjects : Legal and Regulatory Aspects of Banking
Question Bank JAIIB Paper 3 (Legal and Regulatory Aspects of Banking) Exam - English
Legal and Regulatory Aspects of Banking
Q 1 :
The two essential functions of banking as per thedefinition are :
A.Accepting deposits from Public
B.Investing & lending
C.Collecting cheques on behalf of Customers
D.a & b
Q 2 :
Under Prevention of Money Laundering Act 2002, the banks are required to maintain record of cashtransactions of the value of_____- :
A.Rs.50000 and above
B.Rs.1 lac and above
C.Rs.10 lac and above
D.Above Rs.10 lac
Q 3 :
The banks in India, fall in which of the followingcategory :
A.statutory corporations and private companies
B.companies and cooperatives
C.statutory corporations, companies and cooperative societies
D.companies, public sector banks, public sector companies
Q 4 :
Acceptance of deposits by non - banking financial companies is regulated by RBI under :
A.Non - banking financial companies acceptance of public deposits (Reserve Bank) directions, 1998
B.Non - banking financial companies acceptance of government deposits (Reserve Bank) directions, 1998
D.Non - banking financial companies acceptance of Deposits by money lenders (Reserve Bank) directions, 1998
E.None of the above
Q 5 :
Banks can undertake permitted business activities u/s 6 (1) of B R Regulation such as (a) buying or selling of bullion (b) undertake and execute trusts (c) undertake the administration of estates as executors, trustee (d) providing of safe deposit vaults :
A.A, b and c only
B.B, c and d only
C.A, c and d only
D.A to d all
Q 6 :
Which of the following cannot accept deposits from the public :
A.banks
B.non - bank finance companies regulated by RBI
C.other companies regulated by Central govt
D.other firms that are in the business of financial institutions
Q 7 :
Under Sec 49A of Banking Regulation Act, no personother than a bank is authorized to acceptdeposits____ :
A.By Cash
B.By Cheque
C.Withdrawable by Cheque
D.Withdrawable by cash
Q 8 :
Where the parties are yet to perform their mutual promises, in respect of sale & purchase of goods, it is called :
A.Sale
B.Agreement to sell
C.Intention to sell
D.Contract of sale
Q 9 :
Which of the following is not correct statement in the context of Banking Regulation Act :
A.for carrying business of banking, licence from RBI is required
B.each banking company has to use the word ' as part of its name
C.No firm is allowed to use the word 'bank' banking or banking company' as part of their name
D.subsidiaries of banks or in certain cases, the primary credit societies cannot use the word 'bank'
Q 10 :
Banking Companies wishing to commence business in India are required to obtain a license asper____ :
A.Section 22 of Banking Regulation Act
B.Section 22 of RBI Act 1934
C.Section 12 of RBI act 1934
D.Section 22 of Companies act 19561
E.a and d above
Q 11 :
Which of the following statute and constitution of the respective bank does not match :
A.Nationalized banks - Banking Companies Act 1969
B.State bank of India - SBI Act 1955
C.State bank Associate Banks - State Bank (Subsidiary Banks) Act 1955
D.RRBs - RRB Act 1976
Q 12 :
Which of the following does not match in the context of formation of banks :
A.State Bank of India constituted under SBI Act 1955
B.Nationalised Banks constituted Nation alisation Act 1970 and 1980
C.RRBs constituted under RRB Act 1976 under
D.State Bank associate banks constituted under State Bank (Subsidiary Bank) Act 1959
Q 13 :
As per Sale of Goods Act, the_____goods mean the goods identified and agreed upon, at the time of a contract of sale is made :
A.Future
B.Specific
C.Movable
D.Immovable
Q 14 :
Time required for obtaining a copy of the order or award shall be excluded while computing the limitation period for :
A.Filing review application
B.Filing revision
C.Filing an application to set aside the award
D.All the above
Q 15 :
Banking Regulation Act, in addition to commercial banks, is applicable to which of the following :
A.primary agricultural credit societies
B.cooperative land mortgage banks
C.cooperative banks
D.none of the above
Q 16 :
Banking Companies cannot hold immoveable property except for its own use for a period of not more than ____ years from the date of acquisition of the property :
A.2 years
B.4 years
C.5 years
D.7 years
E.None of these
Q 17 :
Which of the following are regulated by Banking Regulation Act 1949 (a) Public Sector Banks (b) State Bank Group banks (c) RRBs (d) Coop Land Mortgage Banks
A.a to d all
B.a to c only
C.a, b and d only
D.a, c and d only
Q 18 :
Which of the following is not a member of Central Board of directors of RBI ?
A.Governor
B.4 deputy governors appointed by Govt
C.other directors nominated by RBI
D.Directors nominated by Govt
Q 19 :
On 19th July, 1969, fourteen major commercial banks were nationalized. These banks had deposits more than Rs.____crore :
A.100
B.500
C.50
D.200
Q 20 :
In the context of Cooperative Banks, which of :
​the following statements are correct (a) coop bank operating in one State obtains registration under State Coop Societies Act (b) for Coop banks operating in more than one State, Central Govt. appoints Registrar (c) Coop banks are under purview of B R Act u/s 56 (d) Where Coop bank is registered under DICGC Act, RBI can order its winding up.
A.a to d all
B.a to c only
C.a, c and d only
D.b and d only is not
Q 21 :
Bank of India Act. Which of the following correct regarding this :
A.u/s 20, it has obligation to undertake business of Central Govt
B.in case of state governments, RBI undertakes banking business based on the agreement with State governments u/s 21A
C.RBI provides temporary advances to Govt. which are called liquidity adjustment facility
D.None of the above
Q 22 :
All Private Sector banks in India are_____ :
A.Body statute Corporate constituted under a special statute
B.Company registered under the Companies Act
C.Foreign Company t
D.Cooperative Society registered under Cooperative Societies Act
E.All of the above
Q 23 :
Which of the following statement is a not correct :
A.Coop Bank operating in more than one state is registered under Multi -State Coop Societies Act
B.Govt. can exempt a bank from provisions of Banking Regulation Act, on its own
C.The company matters relating to a banking company are regulated by an authority under the Companies Act
D.Banks undertake trading in shares subject to regulation by SEBI
Q 24 :
Which of the following powers are not available with Central Govt. as per provisions of Banking Regulation Act 1949 :
A.issue of licence for formation of banks u/s 22
B.approval to banks for formation of subsidiary for certain business u/s 19
C.power to acquire undertaking of banks
D.suspension of business and amalgamation of banks u/s 45
Q 25 :
Banking Regulation (amendment) and Miscprovisions ordinance 2004 was promulgated to permit licensing of____ :
A.Multi - state Co - op banks
B.Foreign banks
C.Banks based in Pakistan
D.All of the above
Q 26 :
No company other than a banking company can use the word 'bank' as part of its name. which of thefollowing is exempted from this requirement (a) a govt. company (b) subsidiary of a bank (c) primary credit society :
A.a to c all
B.a and b only
C.b and c only
D.a and c only
Q 27 :
Associate banks of SBI are registered under :
A.Companies Act
B.Banking Companies Acquisition and Transfer of Undertaking Act
C.SBI Act 1955
D.None of the above
Q 28 :
RBI Act 1934, was constituted and amended for which of the following purpose?
A.To regulate the issue of bank notes
B.For keeping reserves, for securing monetary stability in India
C.To operate the currency and credit system of the country to its advantage
D.Regulate payment system of banks an financial institution based on information technology system.
E.All of the above
Q 29 :
As per Limitation Act 1963, if a suit is filed after the expiry period of limitation i it shall be :
A.Entertained at discretion of the court
B.If case is genuine, it can be filed as a matter of right
C.Dismissed by the court
D.Any of the above
Q 30 :
The Banking Regulation Act was passed for :
A.creating various banks in India
B.creating Reserve Bank
C.regulating the banking companies
D.regulating the acceptance of deposit from public
Q 31 :
Banking Regulation Act normally deals with the following situations.
A.Regulation of business of banking companies
B.Control over the management of banking companies (c) Suspension and winding up of banking companies
C.Penalties for violation of the provisions
D.All of the above
Q 32 :
The Banking Laws (Application to Cooperative Societies) Act 1965, extends certain provisions of (a) Companies Act 1956 (b) banking Regulation Act (c) Act, to cooperative banking sector.
A.A to c all
B.A and d only
C.B and c only
D.A and c only
Q 33 :
Central govt. can exempt the banks from provisions of Banking Regulation Act :
A.of its own, if satisfied
B.on request of the bank concerned
C.on recommendation of RBI
D.any of the above, depending upon the circumstances
Q 34 :
Many times RBI acts as the agent of State government. This is provided under which law ?
A.Notification by Central government for a particular, state
B.On the basis of recommendations made by State government to the central government
C.Approval of State government recommendation by RBI and central government
D.As per the agreement between RBI and Stategovernment under Section 21(a) of Banking Regulation Act
E.None of these
Q 35 :
As per Sale of Goods Act, the seller of goods is deemed to be unpaid seller, when the_____ahs not been paid :
A.Interest
B.Price
C.Penalty
D.Damages
Q 36 :
The term 'corresponding new banks' is used in relation to which of the following :
A.State group banks
B.9 nationalized banks
C.foreign banks
D.new private banks
Q 37 :
Major powers of the RBI under banking regulation act while performing the role of the regulator can be narrated as under :
A.Power to give licence
B.Power regarding audit of banks
C.Power to give directions
D.Power relating to winding - up of the Banking company
E.All of the above
Q 38 :
Which of the following is correct statements in the context of acceptance of deposits by banks (a) banks can refuse to accept deposit from undesirable persons (b) for opening an account, introductory reference is not mandatory (c) for opening of an account, identification is essential (d) banks can accept deposit of money only.
A.A, b and c only
B.b, c and d only
C.A ,c & d only
D.A to d all
Q 39 :
The Banking Regulation Act applies to cooperative banks :
A.as provided in the State cooperative Act
B.as provided in the Central cooperative Act
C.as provided in the modification of Section 56
D.as applicable to other commercial banks
Q 40 :
Apart from RBI banks are also subject to the other regulatory agencies. Out of the following, which can regulate the business of the bank ?
A.Authorities under the companies act
B.Labour Authorities
C.Income Tax authorities
D.SEBI
E.All of the above
Q 41 :
Under Sale of Goods Act, if the sale is by description of goods, the goods shall correspond withthedescription. If these do not correspond with thedescription :
A.Buyer has to buy the goods
B.Seller has to supply the goods as per contract
C.Buyer can rejects the goods and claim back the payment
D.Any of these
Q 42 :
In public sector banks, the shareholding of the Central govt. is :
A.Not less than 50%
B.51% or more t
C.more than 50%
D.less than 50%
Q 43 :
Central government can exempt a particular bank from the provisions of banking regulation act.
A.On the recommendations of the RBI
B.If the central government is satisfied with the case.
C.If requested by the board of directors of the bank
D.If unanimous resolution passed by shareholders of the bank
E.If permitted by SEBI
Q 44 :
The period of limitation is usually with reference to :
A.The type of security
B.The document which entitles the beneficiary to take action in a court of law
C.Type of loan account
D.All the above
Q 45 :
If a bank has to shift its branch in (area).it requires RBI permission u/s 23 of Banking Regulation Act :
A.same district
B.same city
C.same town
D.same village
Q 46 :
Foreign bank's paid up capital and other funds should be (a) minimum Rs.15 lac in the form of deposit with RBI (b) the amount would be Rs.20 lac if the place of business is Mumbai or Kolkata or both (c) 20% of the profit for each year should be deposited with an indian bank (d) central Govt. can relax this condition of its own :
A.A to d all correct
B.A to c only correct
C.A and b only correct
D.A and d only correct
Q 47 :
The shareholder of a banking company canexercise maximum______% of the total voting rights of all shareholders :
A.2%
B.5%
C.10%
D.No such limit
Q 48 :
Out of the following Banking Regulation Act is not applicable to :
A.RRBs
B.Local Area Banks
C.Primary Agricultural Credit Societies
D.Universal Banks
E.All of the above
Q 49 :
U/s 9 of Banking Regulation Act, a banking company can hold immovable property other than for its own use for a period of 7 years. But if the banking company fails to do so, RBI may extend years. But if the Banking company fails to do so, RBI may extend this period by ____ years :
A.3 years
B.5 years
C.7 years
D.Any period on merits of the case
Q 50 :
If the banking licence of a company is cancelled, the appeal can be made to within from date of order rejecting the licence :
A.High Court, 30 days
B.Supreme Court, 30 days
C.Central Govt., 30 days
D.Central Govt., 60 days
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Legal and Regulatory Aspects of Banking
Q 51 :
Every banking company requires a_____ form of RBI under Section 22 of Banking Regulation Act.
A.Registration Certificate
B.Commencement of Business Certificate
C.Notification by the Governor of RBI
D.License
E.None of the above
Q 52 :
If a securitization company fails to comply with RBI guidelines, under SARFAESI Act, who can impose penalties and up to what extent :
A.RBI, fine to Rs.5 lac and if default continuesRs.10000 per day SEBI, fine up to Rs.5 lac
B.SEBI, fine up to Rs.5 lac
C.RBI, fine up to Rs.1 lac
D.SEBI, fine up to Rs.5 lac and if default continues Rs.10000 per day
Q 53 :
Majority of the directors i.e.____% of the directors should have the qualifications prescribed u/s 10 A (2) of BR Act :
A.24%
B.49%
C.51%
D.74%
Q 54 :
Which of the following is not suitably matched :
A.Section - 8 of B R Act : prohibitions for a banking company for trading activities
B.Section - 9 of B R Act : holding immovable property for period exceeding 7 years except for its own use
C.A banking companycan be promoted under aspecial statute to company registered underbanking Regulation Act
D.Authority to specify the activities that can beundertaken by a bank u/s 5 (0) of banking Regulation Act - Central Govt.
Q 55 :
If the Chairman of a bank is to be removed from office :
A.RBI has to give compensation to him
B.RBI has to give opportunity to him of being heard
C.RBI has to take the Board of the bank into confidence
D.RBI has to give him opportunity to continue asdirector
Q 56 :
Banks are not required to take the permission of RBI if the change in the location of an existing place of business is within the :
A.Same city
B.Same town / village
C.Same district
D.Same State
E.a and b above
Q 57 :
RBI can make application to High Court for winding up of a banking company (a) of govt. directs RBI to do so (b) company fails to maintain minimum paid up capital and reserve as per Sec 11 of B R Act(c) RBI has prohibited the bank to accept fresh deposits u/s 35-4 of B R Act (d) bank has fail to remain entitled to carry onbanking activities :
A.A to d all correct
B.A, c and d are correct
C.B, c and d are correct
D.A,b and d are correct
Q 58 :
U/s 36 AB of Banking Regulation Act, RBI can appoint______in a bank :
A.workmen director
B.managing director
C.director
D.additional director
Q 59 :
If RBI cancels the license of a bank, the bank has the remedy option of :
A.Filing a review application before governor of RBI
B.Filing an appeal with RBI after passing a general body resolution.
C.Appeal to central government
D.Appeal after recommendations of general body and governor to central government
E.No right of appeal is available
Q 60 :
Section 45s of RBI Act relates to which of the following :
A.Prohibits unincorporated association of persons from accepting deposits from public
B.Prohibits banks from accepting deposits from public
C.Allow govt. companies for accepting deposits from public
D.Restrict the banks to pay counter interest
Q 61 :
If a chairman of a bank is removed by RBI, he can appeal
​to____within____ :
A.Governor RBI, 30 days
B.SEBI, 30 day
C.Central Govt., 30 days
D.Central govt., 2 months
Q 62 :
While granting the licence to a banking company,RBI has the right to inspect the books of banking company for the purpose of checking :
A.Whether the company is or will be in a position to pay its present and future depositors in full as their claims accrue.
B.Whether the affairs of the company are being conducted in a manner detrimental to the interest of present and future depositor
C.Whether public interest will be served by grant of licence to the company
D.Whether grant of license would be prejudicial to the consolidation of banking system
E.All of the above
Q 63 :
A bank is offered the following securities by aborrower to secure his loan, which of these will be given preference over the other securities :
A.Mortgage of a commercial show room valuing 200% of loan amount
B.Hypothecation of stocks of goods valuing 150% of loan amount
C.Shares of a reputed company listed on a stock exchange being 200% of loan amount
D.Life insurance policy issued by LIC of India being 125% of loan amount
Q 64 :
Which of the following statement is correct regarding dividend payment by banks :
A.there are no restrictions on banks to pay dividend
B.the dividend cannot be paid without permissionof RBI
C.dividend can be paid only when the capitalized expenses are completely written off
D.dividend can be paid out of past profits or current profits
Q 65 :
Organizational structure of a bank depends on :
A.Category i.e. whether it is a Public Sector Bank or a private bank etc
B.On the size and reach of the bank
C.On the business plan of the bank
D.All of the above the
E.None of above
Q 66 :
Which among the following cannot accept deposits from public except relatives u/s 45-s of RBI Act : (a) individuals (b) firms (c) unincorporated association of person (d) primary credit society. Whose principal business is lending or acceptance of deposits
A.A to c all
B.A, b and d only
C.B, c and d only
D.A to d all
Q 67 :
Corporate governance principals of 2004,are called :
A.CG principles of corporate governance
B.OECD principles of corporate governance
C.Corporate governance principles
D.ABC principles of corporate governance
Q 68 :
Due to liberalization of economy the emphasis of the nationalized bank has shifted to :
A.Consolidation of branch network
B.Computerization of branches
C.Scientific management of risks
D.Cost cutting
E.All of the above
Q 69 :
The major objective of formation of RBI by enacting RBI Act 1934 was to(a) regulate the issueof bank notes (b) keep reserves for securing monetary stability in India (c) to operate the currency and credit system of India (d) to keep control over the capital market and foreignexchangemarkets :
A.A to d a
B.B, c d only
C.A, c and d only
D.A to c only
Q 70 :
As per RBI guidelines for corporate governance, RBI permission is required for acquisition of shares of a private bank, if it is :
A.5% or more
B.10%
C.10% or more
D.15% or more
Q 71 :
RBI has recently permitted Banks to raiseCapital by way of____ :
A.Innovative Perpetual debt Instruments
B.Perpetual Non - Cumulative Preference shares
C.Debt Capital instruments
D.Redeemable Cumulative shares
E.All of the above
Q 72 :
For banking business, the banking Companies are licensed by (a) RBI (b) Company Law Board (c) registrar of Companies (d) Security and Exchange Board of India :
A.A to d all
B.Only a to c
C.Only a and d
D.Only a
Q 73 :
RBI can regulate acceptance of deposits including rate of interest on deposits by banks. under section_____of____ :
A.35, Banking Regulation Act
B.35 - A, Banking Regulation Act
C.35, Reserve Bank of India Act
D.45, Reserve Bank of India Act
Q 74 :
There is no specified ceiling on persons holdingshares in a banking, company under the Banking Regulation Act. However, under Section 12 (2) of Banking Regulation Act, there are certain restrictions on voting rights of shareholders. The voting rights of no one person shall not be in excess of_____% of the totalvoting rights of all the shareholders of the Banking Company.
A.10%
B.15%
C.20%
D.25%
E.None of the above
Q 75 :
RBI can issue direction to banks u/s 21 and u/s 35A of Banking Regulation Act for (a) Sec 21 in public interest (b) Sec 35A in public interest (c) Sec21 relating to loans (d) Sec 35A relating to loans. Which of these is correct :
A.A and b only
B.A and c only
C.B and c only
D.None of the above
Q 76 :
The purpose of issue of selective credit control by RBI is to regulate the availability of credit according to :
A.priority of borrowers
B.priority of RBI
C.risk involved in the loan transaction
D.national priority
Q 77 :
Banks cannot formthe subsidiaries for the following purposes :
A.Carrying on trading activities by acquiring controlling interest in Non - banking companies
B.Undertaking any business which is permissible under clauses (a) to (o) of Section 6(1)
C.Carrying on the business of banking exclusively outside India with the permission of RBI
D.Reserve Bank may permit only such other business necessary in the public interest
E.None of the above
Q 78 :
Out of the under noted statements, which is not correct :
A.Licence from RBI is essential to open a bank - Sec 22 B R Act
B.Every banking company has to use the word bank as part of its name
C.No company other than a banking company can use the word bank or banker as part of its name
D.A firm, group of individuals can use the words banking company as part of their name or for the purpose of business, by giving a public notice
Q 79 :
Which of the following statement does not match to its answer :
A.banks can lend any amount of loans to theirdirectors false
B.RBI issues directions to banks on loans and advances u/s 35A of Banking Regulation Act - true
C.Banking Ombudsman have been created by RBI u/s 35 A of Banking Regulation Act - true
D.When credit flow is regulated by RBI to particular sectors of the economy it is known as priority sector credit - - false
Q 80 :
Under Banking Companies (Acquisition and Transfer of undertaking Act 1970) as amended by Act 40 of 1980, the authorized capital of each public sector bankscannot be less than Rs.______crore and can beincreased up to Rs._ core by the central government.
A.1500, 3000
B.1800, 3200
C.2000, 3500
D.2200, 4000
E.2500, 5000
Q 81 :
The date of documents of a loan is January 25,2006. The prescribed limitation period is three years.The suit can be field latest by :
A.January 25, 2009
B.January 24, 2009
C.January 26, 2009
D.January 27, 2009
Q 82 :
U/s 26 of Banking Regulation Act, the banks are required to file a return with RBI relating to :
A.unclaimed deposits
B.selective credit control advances
C.advances to sensitive sectors of the economy
D.position of high value bad loans
Q 83 :
Out of the total number of directors at least two directors should have the knowledge or practical experience in any of the following :
A.Agriculture
B.Rural Economy
C.Cooperation
D.Small Scale Industry
E.All of the above
Q 84 :
The objective of enacting Banking Regulation Act was to :
A.Regulate banking companies
B.Creation of banking system
C.Regulating acceptance of deposits from public
D.All the above
Q 85 :
Every - banking company has to maintain assets in India, equal to____% of_____u/s 25 of BankingRegulation Act as at last Friday of each quarter :
A.75% of demand and time liabilities
B.75% of net demand and time liabilities
C.50% of net demand and time liabilities
D.25% of demand and time liabilities
Q 86 :
What is the maximum tenure for a part time director of a banking company including extension ?
A.8 years
B.5 yeas
C.3 years
D.4 years
E.10 years
Q 87 :
As per Sale of Goods Act, the unpaid seller of goods in possession of the goods, is entitled to retain the possession of the goods until payment of the price is made, in the following cases :
A.If the goods have been sold without any stipulation as to credit
B.If the goods have been sold on credit, but the term of credit has expired
C.If the buyer becomes insolvent
D.Any of the above
Q 88 :
Liquid assets maintained by banks u/s 24 of Banking Regulation Act are of the cash reserves maintained by banks u/s 42 of Reserve Bank ofIndia Act :
A.inclusive
B.exclusive
C.dependent
D.partly inclusive
Q 89 :
If the board is not constituted as per Section 10A of Banking Regulation Act and Reserve Bank has ordered for the reconstitution of the board (after giving thereasonable opportunity of being heard), The board is to be reconstituted within____ :
A.1 month
B.2 months
C.3 months
D.5 months
E.15 days
Q 90 :
Under the provisions of Section 22 of RBI Act :
A.RBI regulates the banks
B.RBI conducts govt. business
C.RB1 is the sale authority to issue and managecurrency in India
D.RB1 issues note refund rules
Q 91 :
Which of the following provision of Banking Regulation, Act is not properly matched :
A.Section 26 - Unclaimed deposits
B.Section 21 - RBI authority to give directions to banks on loans and advances
C.Section 24 - maintenance of cash reserve
D.Section 17- creation of reserve fund by bank from profits
Q 92 :
Which of the following statements is not correct :
A.Central govt. holds the entire capital of RBI
B.Central govt. appoints governor and other officials of RBI
C.Central govt. can issue directions to RBI
D.Central govt. appoints the members on RBI board and can remove them
Q 93 :
The directions issued by RBI to banks, u/s 35A of Banking Regulation Act :
A.are binding on the banks only
B.are applicable to banks as well as public
C.are not binding on the bank but are only advisory in nature
D.are binding on the banks acceptance to the same
Q 94 :
A person who is to be appointed whole time chairman or Managing Director of a bank will not be disqualified.
A.If he is a director of a company
B.If he is a partner of any firm
C.If he is a proprietor of any trading commercial or industrial concern
D.He is a director of a company registered under Section 25 of Companies Act.
E.None of the above
Q 95 :
As per Sale of Goods Act, if there is breach ofwarranty, which of the following would be true :
A.The parties can reject the goods
B.The parties can treat the contract as repudiated
C.The parties can claim damages
D.All the above remedies are available
Q 96 :
The liquid assets u/s 24 of Banking Regulation Actcan be maintained by the bank in the form of :
A.cash in hand and bank balances only
B.cash in hand, bank balance and investment in gold or approved securities
C.cash in hand, bank balance and investment in gold only
D.cash in hand and investment in gold or approved securities only
Q 97 :
For foreclosure of a mortgage, the limitation period is 12 years from :
A.Date of loan document
B.Date of mortgage
C.Date when the money secured by the mortgage becomes due
D.Any of the above dates,whichever is earlier
Q 98 :
If penal interest is imposed by RBI for defaults in maintaining liquid assets (SLR) :
A.RBI can waive the penal interest
B.RBI cannot waive the penal interest and has to recover
C.RBI can partly waive the penal interest
D.RBI has no option except to waive if the bank refuses to make the payment
Q 99 :
No person can becomea director withouthaving certain category ofsharesof bankingcompany. These are :
A.Equity Shares
B.Preference Shares
C.Qualification Shares
D.Disqualification Shares
E.Any of the above
Q 100 :
While issuing a banking license for a foreign banks RBI, in addition to usual consideration takes into account (a) whether the business will be carried by the company in public interest (b) whether the law of country where the bank originated discriminates against Indian banks (c) whether the company complies with provisionsof B R Act, as applicable to foreign companies :
A.a to c all
B.a and b only
C.b and c only
D.a and c only
Q 101 :
In case of nomination for deposit accounts, the nominee can obtain payment of deposit :
A.before maturity in case of term deposit
B.during the life time of depositor,
C.even when there is direction from court to thecontrary
D.give discharge on- FDR for raising a loan after death of the account holder
Q 102 :
_____ is exempted from the stipulation ofqualification shares :
A.Whole - time Chairman
B.Managing director
C.Director nominated by RBI
D.All of the above
Q 103 :
As per Sale of Goods Act, the____ goodswhichare to be manufactured by the sellerafter makingcontract of sale :
A.Future
B.Specific
C.Movable
D.Immovable
Q 104 :
When articles lying in safe custody of the bank, are handed over to the nominee after death of the account holders :
A.the bank gets valid discharge
B.the bank gets valid discharge only if it is with consent of the legal heirs
C.the bank gets valid discharge when no dispute is the raised by the legal heirs
D.the bank get valid discharge only if there is a court direction to that effect
Q 105 :
Which of the following statements are notcorrect in connection with shareholding in an Indian bank under provision of B R Act :
A.There is no ceiling on a person's holding of shares
B.No shareholder can exercise voting rights in excessof 10% of total voting rights
C.The provision of 10% ceiling restricts the transfer and registration of such transfer
D.The provisions of Companies Act also govern transfer of shares of banking companies
Q 106 :
Which of the following tools are not used by RBI under selective credit control directives :
A.minimum margin for lending
B.ceiling on the level of credit
C.minimum rate of interest on advances to selectcommodities
D.None of the above
Q 107 :
The additional director appointed by RBI will hold the office for a period of three years, which canbe further extended by RBI up to the period_____years
A.3 years
B.2 years
C.5 years
D.1 year
E.Period cannot be further extended
Q 108 :
Before declaring a dividend a banking company has to reduce from its profits (a) preliminary or share selling expenses (b) organization expenses (c) brokerage and loss incurred (d) bad debts for which adequate provision has been made :
A.Only a to c
B.Only b to d
C.Only a and d
D.Only b and c
Q 109 :
U/s 25 (1) of Banking Regulation Act, banks submit to RBI a return relating to within from end of every quarter :
A.assets maintained in India, one month
B.assets and liabilities in India, two month
C.capital adequacy ratio, 15 days
D.position of NPA, one month
Q 110 :
If a bank violates a circular from RBI, it is held by Supreme Court that these violations will not render the bank's contracts with a third party____ :
A.Invalid
B.Valid
C.Void an
D.Voidable
Q 111 :
Under provisions of Prevention of MoneyLaundering Act 2002, who appoints the director fortracking money laundering
A.Reserve Bank of India
B.Central Bureau f of Investigation
C.Central Govt.
D.Each State Govt. concerned
Q 112 :
RBI can carry inspection of banks by exercising powers u/s of :
A.Section 21, Banking Regulation Act
B.Section 35, Banking Regulation Act
C.Section 21, Reserve Bank of India Act
D.Section 35, Reserve Bank of India Act
Q 113 :
Apart from giving directions (Under Section 21 read with Sec 35-A) RBI may also give to banking Companies :
A.Caution
B.Advice
C.Punishment
D.a & b
Q 114 :
Which of the following statements regarding RBI is not correct :
A.RBI has the authority to issue license to banks
B.Entire capital of RBI is held by Central Govt. & State Governments
C.Central Govt. appoints the governor of RBI
D.Central Govt. can issue directions to RBI under RBI Act
Q 115 :
While taking a decision on the complaint filed by a customer, the Ombudsman :
A.follows the general guidelines issued by the govt., SEBI, RBI
B.takes into account the circumstances and frames its own rules
C.takes into account RBI directives
D.all the above
Q 116 :
RBI is empowered to issue directions for advances under Sec____of B.R. Act 1949 :
A.21
B.23
C.25
D.4
Q 117 :
Central Govt. has certain powers to regulate banks. Which of the following is not such power :
A.Suspend the operations of Banking Regulation Act
B.Notification of other forms of business which the banks may undertake u/s 6 (o) of RBI Act
C.Making of rules for various banking operations u/s 52 and 45-Y of B R Act
D.Suspension of business and amalgamation of banks
Q 118 :
The balance sheet and profit loss account of a banking company is required to be audited by :
A.chartered secretary
B.any person qualified under any law to be an auditor of the company
C.auditors of the banking company
D.certified financial analyst
Q 119 :
B.R. Act imposes some restrictions u/s 20 onbanking companies regarding loans and advances. Banking companies are prohibited from grant loans or advances on the security of their own shares :
A.To staff
B.To Directors
C.To Public
D.Any one
Q 120 :
Which of the following statements are correct :
A.Central Govt. can give direction to RBI
B.Banking business of all types is regulated by RBI
C.The primary regulator of banks is Central Govt. and RBI
D.If a banking license is cancelled, the appeal les to RBI
