The Tip of Indian Banking- Part 4

8/17/2019 The Tip of Indian Banking- Part 4

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1. BANKING RATIONALES – PART: 001

In this article there are discussins a!ut certain !an"in#ratinales as a$$lica!le in India:

%h& insurance has t !e !tained in 'int na(es ) the

!an" and the !rr*er +

Ban" has insura!le interest in the securities a#ainst *hich

lan has !een #i,en t the !rr*er. Brr*er is the *ner

) the securities and !an" has the interest in these

securities- as !an" is t rec,er the (ne& utstandin# !&

liuidatin# the securities. In an& situatin *here there islss t the securities due t an& e,ent li"e )ire- )ld-

earthua"e etc.- !an" can clai( the c($ensatin )r( the

insurance c($an& nl& *hen the $lic& is in the 'int

na(es ) the !an" and the !rr*er

%h& $*er ) attrne&hlder shuld nt !e all*ed t

surrender the lc"er "e& t the !an" +

It is the dut& ) the a#ent t carr& ut the instructins ) the

$rinci$al dili#entl& and s"ill)ull& as $er the clauses ) the

$*er ) attrne&. The a#ent has the authrit& t $erate

the lc"er and this (eans t carr& ut the cntract. But

under n circu(stances a#ent can ter(inate the cntract.

But under n circu(stances a#ent can ter(inate the

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cntract. Ter(inatin ) the cntract can !e dne !& the

$rinci$al nl&. The surrender ) the lc"er "e& a(unts t

dischar#e ) cntract !& ter(inatin/cancellatin and this

$*er is nt *ith the a#ent. A#ent has the ri#hts t ta"e the

cntents ) the lc"er !ut cannt clse the cntract

%h& ter( de$sits (aturin# n hlida&s are $aid n the

succeedin# da& !ut nt n the $recedin# !usiness da& +

In case ) ter( de$sit recei$ts- the cntract !et*een the

cust(er and the !an" indicates that $a&(ent *ill !e (ade

t the de$sitr n the (aturit& date. I) the !an" des nt

(a"e the $a&(ent n that da& !an" can !e e$sed t le#al

ris". T sa)e#uard the interest ) the !an" and t sa,e it)r( a,ida!le liti#atin- RBI has instructed the !an"s that

i) the due date ) the ter( de$sit )ails n $u!lic hlida&s

then $a&(ent ) that can !e (ade n the )ll*in# !usiness

da& aln# *ith $a&(ent ) interest )r the inter,enin#

hlida&s. Nr(all& !an" hlida&s are declared as $er

Sectin 2 ) Ne#tia!le Instru(ents act in ad,ance-

h*e,er- ter( de$sit recei$ts are nt ne#tia!le

instru(ents. In case ) usance ne#tia!le instru(ents-situatins are ther*ise. i.e. i) (aturit& date )alls n a

hlida&- $a&(ent *ill !e due n $recedin# !usiness da&.


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AT3 4RA56S

4rauds in AT3 are ta"in# $lace all ,er the *rld. 7ere are

s(e ) the (dus $erandi

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?ilence: It usuall& ha$$ens at ni#ht- *hen there is n ne

arund the AT3- the $ersn is "idna$$ed and ta"en t the

AT3 and )rced t *ithdra* cash.

BANK PRO3OTIONS 8 IN6IAN 9ONTE@T 8 RAPI6 REA6ING

E@ER9ISE 8 PART: 01

O44I9IAL LANG5AGE

0 . The O))icial Lan#ua#e Plic& ca(e in )rce *ith e))ect

)r( .01.120. The act *as $assed in the &ear- 1C

01. The Parlia(entar& 9((ittee n O))icial Lan#ua#e has t

!e cnstituted *ith C0 (e(!ers – 0 )r( L" sa!ha and 10

)r( Ra'&a Sa!ha

0C. O))icial Lan#ua#e rules *ere )ra(ed in 1D

0. O))icial Lan#ua#e Rules are a$$lica!le t all states and

unin territries ece$t Ta(il Nadu

02. 5nder Rule 2- all letters recei,ed in 7indi ha,e t re$lied

t in 7indi nl&

0. As $er Rule 10c ) O))icial Lan#ua#e act- a letter recei,ed

in 7indi is t !e re$lied in 7indi nl&

0D. It is the res$nsi!ilit& ) ad(inistrati,e head ) each

!ranch/))ice/de$art(ent t ensure that the $Fr,isins )O))icial Lan#ua#e act are c($lied *ith ;rule 1;1<

0. 9anara Ban" Ra'a!asha A"sha& H'ana – a*ard t

!ranches/))ices )r usea#e ) 7indi

0. 9anara Ban" Ra'a!asha Puras"ar H'ana – a*ard t

e($l&ees )r usin# ) 7indi in da& t da& ))icial *r"

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10. Indira Gandhi O))icial Lan#ua#e a*ard sche(e #i,en !&

G,ern(ent t 3inistries- Ban"s- 4inancial Institutins )r

usin# ) 7indi

11. Indira Gandhi a*ard )r ri#inal !"s *ritten !&

e($l&ees in 7indi – 4irst Pri=e – Rs. 10000.00F Secnd Pri=e:

Rs.000.00F Third Pri=e: Rs. 2000.00

1. All !ranches t ha,e O))icial Lan#ua#e I($le(entatin

9((ittee *ith !ranch head as the E))ici 9hair(an. At

least ne (eetin# e,er& three (nths

1C. The O))icial Lan#ua#e 9((ittee has t !e recnstituted

e,er& &ear

1. As $er Sectin C;C< ) O))icial Lan#ua#e Act- 1C- #eneralrders- instructins- circulars- ntices etc ha,e t !e issued

in,aria!l& in 7indi and En#lish

12. STR 1 – uarterl& Pr#ress Re$rt n O))icial Lan#ua#e

due n last da& ) e,er& uarter

1. 7indi 6a& is cele!rated n 1th Se$te(!er e,er& &ear – t

c((e(rate the cnstitutinal rec#nitin accrded t

7indi as the O))icial Lan#ua#e n 1.0.1

1D. Re#in A – 7i(achal PradeshF 7ar&ana- Ra'asthanF 3adh&aPradeshF BiharF 5ttar PradeshF 5ttar"handF har"hand-

9hattis#arh- 5nin Tettitr& ) 6elhi- Anda(an and Nic!ar

Islands

1. Re#in B – 3aharashtra- Gu'arat- Pun'a!- 5nin territr& )

9handi#arh

1. Re#in 9 – All ther re(ainin# states

0. In Parlia(ent 7indi and En#lish are used )r transactin )

!usiness

1. As $er sectin C;C< ) the act- certain s$eci)ied dcu(ents

are t !e !ilin#ual

. Scri$t ) ))icial lan#ua#e 7indi is 6e,ana#ari


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C. The in huse distance educatin $r#ra((e ) the !an" is

9ANBANK 7IN6I PAT7RA97AR PFAT7HAKRA3

. %hen 0J ) the sta)) (e(!ers attain *r"in# "n*led#e

in 7indi in !ranch/))ice- the na(e ) the !ranch/))ice *ill

!e nti)ied in the #a=ette under Rule 10;<

2. Rule 11 s$eci)ies that (anuals- cdes statiner& ite(s etc

shuld !e in lin#ual

. As $er Rule 1- res$nsi!ilit& ) c($liance ) O))icial

Lan#ua#e rules lies *ith the ad(inistrati,e head

D. The rder ) lan#ua#e in the na(e $lates ) ur Ban" in

Re#in 9 shuld !e Re#inal Lan#ua#e- 7indi and En#lish

. Peridicit& ) O))icial Lan#ua#e I($le(entatin9((ittee (eetin#s – uarterl& – calendar uarter

. T*n O))icial Lan#ua#e I($le(entatin 9((ittee –

TOLI9 (eetin#s – nce in si (nths

C0. 20J ) ttal li!rar& !ud#et shuld !e used )r $urchase )

7indi B"s

C1. I) an& sta)) (e(!er $asses Ban"in# Pra#h&a- it *ill !e

treated that he $ssesses *r"in# "n*led#e in 7indi

C. IT initiati,es in the )ield ) O))icial Lan#ua#eI($le(entatin – Sha!daratna – *rd $rcessr- A"ruti83S

))ice- Ban"scri$t – !ilin#ual inter)ace )r $ass sheet- 46R-

lea,e $rceedin#s etc.

CC. 5nder 9anara Ban" Ra'a!asha A"sha& H'ana –

!ranches/))ices are a*arded $ri=es

C. 5nder 9anara Ban" Ra'a!asha Puras"ar H'ana – sta))

(e(!ers are a*arded $ri=es

C2. 9anara Ban" has *n the cnslatin $ri=e )r the !est

i($le(entatin ) O))icial Lan#ua#e 7indi )r the &ear –

00C/00 )r( G,ern(ent ) India ;Indira Gandhi

Ra'a!asha Shield


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C. I) an e($l&ee $asses (atriculatin r eui,alent r

hi#her ea(inatin *ith 7indi as a (ediu( ) ea(inatin

he *ill !e treated as $r)icienc& in 7indi

CD. I) an& t&$ist t&$es C00 ntes/letters/dra)ts in 7indi in a

uarter he *ill !e eli#i!le )r an all*ance ) Rs. 0/8 $er

(nth

C. Incenti,e t ))icers )r #i,in# dictatins in 7indi – 2

letters etc $er da& r 20 letters/dra)ts $er uarter – Rs.

1000.00 $er (nth in Re#in:9

C. I) an e($l&ee $asses In Ban"in# Pra#&a Ea(inatin

under crres$ndence curse *ith D0J and a!,e (ar"s he

*ill !e eli#i!le )r an incenti,e a(unt ) Rs.00.000. 7indi (a#a=ine $u!lished !& 9anara Ban"- 7ead O))ice-

Ban#alre – 9ANHOT7I

1. 7indi di,as is cele!rated n – 1 th Se$te(!er- each &ear

. The articles ) cnstitutin dealin# *ith ))icial lan#ua#e –

CC t C21

C. 7indi *as declared as ))icial lan#ua#e ) the Indian 5nin

– 1.0.1

. 7indi Pa"h*ara ;7indi )rtni#ht< cele!rated )r(Se$te(!er 1 t 1

:

0


E@ER9ISE: PART: 011



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9I?IL PRO9E65RE 9O6E

0 . Su((ns are t !e issued t de)endants: *ithin C0

da&s )r( the date ) )ilin# suit

01. %ritten state(ent has t !e )iled !& the de)endants

*ithin – C0 da&s ) ser,ice ) the su((ns *hich can

!e etended t 0 da&s !& the curt

0C. Ti(e )ied )r an& act under the cde can !e etended

nt eceedin# – C0 da&s in ttal

0. The $lainti)) has t $rduce dcu(ents and $a&

reuisite )ee *ithin – se,en da&s ) rders ) the curt

02. I) the su((ns are returned $lainti)) has t a$$l& )r

a )resh su((ns – *ithin se,en da&s ) return )ailin#

*hich suit shall !e dis(issed

0. Ad'urn(ents *ill nt !e #ranted )r (re than – three

ti(es durin# the hearin# ) suit

0D. Su((ns can !e ser,ed !& Pri,ate 9urier8 a$$r,ed

!& 7i#h curt/district curt r thru#h e(ail- )a

re#istered $st8ac" due

0. N a$$eal can !e )iled ther uestin ) la* – i) the

suit a(unt des nt eceed Rs. 0000.00


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0. N secnd a$$eal can !e )iled )r( the decree )

(ne& suit i) the a(unt – des nt eceed Rs.

12000.00

0. N arrest ) ud#(ent de!tr can !e (ade i) decree

a(unt – des nt eceed Rs. 1000.00

. N arrest ) 'ud#(ent de!tr in a ci,il suit can !e

(ade 8 irres$ecti,e ) the a(unt i) she is a lad&

1. I) the decreed a(unt eceeds Rs. 1000.00 8 !ut des

nt eceed Rs. 2000.00 arrest can !e (ade )r a $erid

nt eceedin# si *ee"s

C. I) the decreed a(unt eceeds Rs. 2000.00 – arrest

can !e (ade )r a $erid nt eceedin# three (nths

. 4ine )r nn8c($liance ) su((ns 8 is Rs. 2000.00

2. In eecutin ) decree !& ci,il curt 8 !asic thin#s

li"e c"in# ,essels. 9lthers- $ersnal rna(ents as

$er reli#ius use - tls )r (a"in# li,elihd- )a(il&

$ensin- #ratuit& *a#es ) la!urers- d*ellin# huse

*a#es ) la!urers etc cannt !e attached

. In eecutin ) decree !& ci,il curt – i) the huse is

(rt#a#ed it can en)rced

D. In eecutin ) decree !& ci,il curt – the salar& t

the etent ) )irst Rs. 000.00 and 1/C ) re(ainder

cannt !e attached

9ON S53 ER PROTE9TION A9T8 ;9OPRA<

. 6e)icienc& (eans 8 an& )ault- i($er)ectin-

shrtc(in# in ualit&/nature/(anner ) ser,ice

. 9($laint has t !e )iled 8 *ithin t* &ears )r( the

cause ) actin

10. 6istrict )ru( – clai(s u$t Rs. 10 la"hs

1 . State c((issin – clai(s ) a!,e Rs. 10 la"hs u$t

Rs. crre


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11. Natinal c((issin – clai(s ) a!,e Rs. crre

1C. Ban" has t )ile its ,ersin – *ithin C0 da&s ) ntice

1. Nn c($liance ) rders ) )ru( *ill attract – a )ine

) u$t Rs. 0000.00 r i($risn(ent ) three &ears r

!th

12. A$$eal t !e )iled a#ainst rders ) 6istrict 4ru( in

State )ru( – a)ter de$sitin# 20J ) a(unt #ranted !&

State 4ru( r Rs. C2000 *hiche,er is less

1. A$$eal a#ainst the rders ) Natinal 4ru( – can !e

)iled !e)re Su$re(e 9urt a)ter de$sitin# 20J )

decreed a(unt !& the Natinal 9((issin r Rs.

20000 *hiche,er is less

1D. Li(itatin )r )ilin# ) a$$eals – C0 da&s )r( the

rders

BANKIING O3B56S3AN S97E3 E

1. In rder t $rceed under the sche(e – the cust(er

has t )irst *rite t the !an"

1. I) the !an" has nt re$lied *ithin ne (nth r

re'ected the c($laint r i) the re$l& ) the !an" is nt

satis)actr& t the cust(er – then he can $re)er

c($laint *ith the !an"in# (!uds(an

C0. Li(itatin )r )ilin# 9($laint is 8 ne &ear )r( the

date ) re$l& )r( the !an"

C . %hen n re$l& is recei,ed )r( the !an" 8 then ne

&ear and ne (nth )r( the date ) c($laint

C1. The a*ard !& Ban"in# O(!uds(an *uld !e 8 actual

a(unt ) lss r Rs. 0 la"hs *hiche,er is less

CC. Ban" has t settle c($laint – *ithin ne (nth )

recei$t ) the sa(e

C. Ban" has t hnur a*ard 8 *ithin ne (nth )r( the

date ) acce$tance ) a*ard !& the c($lainant


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C2. An& $ersn a##rie,ed !& the a*ard – (a& $re)er an

a$$eal *ithin C0 da&s !e)re the a$$ellate authrit&

;RBI 6e$ut& G,ernr<

C. In case the !an" has t )ile a$$eal – the& ha,e t

!tain $er(issin ) 9hair(an and 3ana#in# 6irectr

and in his a!sence $er(issin ) Eecuti,e 6irectr )r

$re)errin# a$$eal

7R6 3EAS5RES O4 T7E BANK

CD. Stud& circle – is a )ru( t e$and the "n*led#e

hri=n ) e($l&ees and it hel$s e($l&ees "n*

,arius in)r(atin thru#h $ersns s"illed in thse

areas

C. Brainstr(in# sessins – it is a )ru( t !tain

)eed!ac" and elicit ideas/,ie*s/su##estins n rele,ant

t$ics thru#h discussins it instills thin"in# $rcess

C. 9ircle 3ana#e(ent Bard – T )r(all& re,ie* all

as$ects ) 9ircle/s )unctinin# and deter(ine *a&s and

(eans t i($r,e the *r"in# and t (nitr the le,el

) i($le(entatin ) ,arius ideas- sche(es-

$r#ra((es etc.

0. E($l&ees> su##estin sche(e – It is a sche(e

thru#h *hich ,arius su##estins are !tained )r( all

sectins ) e($l&ees. Su##estins are !tained in

re#ard t chan#es/(di)icatins in $rcedures/s&ste(s

) ur !an"

. Branch ,isits/inter)ace – T re,ie* and (nitr the

!ranch>s )unctinin# and t #uide the $ersnnel in all

(atters

1. Trainin# – T induct the e($l&ees- de,el$ s"ills-

i($art "n*led#e n )unctinal and !eha,iural areas

and t de,el$ $tentialit& and $ersnalit& ) the

indi,idual


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C. ualit& 9ircle – It is a ,luntar& #ru$ ) e($l&ees

*r"in# in the sa(e *r" area c(in# t#ether t sl,e

*r" related $r!le(s

. E($l&ees Rec#nitin Sche(e – All e($l&ees are

(ti,ated t ta"e $art in ,arius de,el$(ental

acti,ities li"e de$sit (!ili=atin- rec,er&- clientele

!uild u$ and the& are a*arded )r their cntri!utins !&

enrllin# the( in ,arius clu!s li"e 9hair(an>s 9lu!-

E6>s 9lu! and G3>s clu! etc

2. Sta)) 3eetin# – T )ster tea( !uildin# and t $r,ide

a )ru( )r indi,idual de,el$(ent. 9r$rate !'ecti,es

can !e $r$a#ated and the talents ) e($l&ees can !e

rec#ni=ed. It $r(tes a t* *a& c((unicatin and

is an use)ul tl )r i($r,e(ent in *r" culture

. Entr& inter,ie* – T intrduce the details ) histr&

and culture ) the !an" t the ne* entrant and t (a"e

the ne* entrant c()rta!le t the ne* at(s$here

D. Eit inter,ie* – T #et a )ree and )ran" )eed!ac" )r(

the $ersn lea,in# the r#ani=atin and t !id a *ar(

)are*ell t the ut#in# e($l&ee

4ORE@ – AT A GLAN9E

. 4E3A – ca(e int e))ect )r( 0 .0.

. Schedule I – $rhi!ited T@NM

20. Schedule II – 9entral G,ern(ent $er(issin reuired

2 . Schedule III – deals *ith $ur$se- li(its *here RBI

$er(issin is reuired in cases li"e – #i)ts eceedin#

5S6 2000F dnatins eceedin# 5S6 2000F Pri,ate ,isits

eceedin# 5S6 0000 $er )inancial &earF $ri,ate ,isits

eceedin# 5S6 12000 $er ccasin


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21. Release ) )re u$t 5Sdllar la"h – )r (edical

treat(ent

2C. Educatin- e(i#ratin and e($l&(ent – (ere

dcu(entar& $r) echan#e can !e released

2. 4r !e&nd dcu(entar& $r) )r release ) )re –

RBI $er(issin is reuired

22. LRS 8 Li!eralised Re(ittance Sche(e )r indi,iduals

2. Indi,iduals can re(it – 5sdllar 1 la"hs $er )inancial

&ear

2D. Indi,iduals can cnduct – an& $er(issi!le current

accunt and ca$ital transact tins

2. %h can $en LRS + – a !an"er can all* an&

cust(er *h has c($leted ne &ear ) satis)actr&

dealin#s can $en;$r,isin ) PAN is a (ust<

2. Each indi,idual in a )a(il& – can indi,iduall& en'& the

li(its indicated

0. NRIs – an& $ersn residin# a!rad )r (re than 1

da&s durin# the $receedin# )inancial &earF an& $ersn

#in# a!rad )r #ain)ul e($l&(ent r circu(stances

indicatin# inde)inite $erid ) sta& a!radF *i)e

acc($an&in# Nn Resident Indian a!rad is als

treated as NRIF O))icials de$uted t E(!assies- 5NES9O

etcF Indian students #in# a!rad )r studies a!rad

*hether he earns r nt

. Persns ) Indian Ori#in – 4rei#n Natinals *hse

$arenta#e can !e traced !ac" t IndiaF $arents r #rant

$arents hldin# Indian $ass$rt r citi=en ) India

1. 4rei#n turists ,isitin# India – can $en Nn Resident

Ordinar& accunt )r si (nths $erid

C. RBI $er(issin is reuired – t retain the accunt

!e&nd si (nths $erid


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0. P*er ) attrne& hlder – cannt $en/clse the

accunt

. Trans)er )r( NRE t NRE accunt – $er(itted )reel& i)

de$sitr hi(sel) #i,es instructins

1. NRE TO6 – Rs. 20000/8 as $er 4E3A #uidelines

C. NRO TO6 – N li(it

. NRE ter( de$sit – LIBOR S%AP rate $re,ailin# n last

da& ) the (nth a$$lica!le t 5S6 )r the

crres$ndin# (aturit& $lus D2J !asis $ints

2. 4E6AI dis$la&s the rate 8 in their *e!site

49NR;B<

. LIBOR – s*a$ rate $re,ailin# n last da& ) the (nth

a$$lica!le t res$ecti,e currenc& )r crres$ndin#

$erid $lus 00 !asis $ints

D. Ban"s are #enerall& $er(itted t $en accunts in –

5S dllars-GBP- Eur- A56- 9A6- HEN

. 49NR ;B< accunts nt $ened in – Hen in 9anara Ban"

. 49NR 46R – (ini(u( ne &ear

0. 49NR K6R – (ini(u( ne &ear ne da&

. 49NR 46R – Interest $a&a!le at the ti(e ) (aturit& i)

acce$ted )r a (ini(u( ne &ear

1. I) interest is t !e $aid !e)re (aturit& date li"e

(nthl&/uarterl& interest etc – (ini(u( $erid is ne

&ear ne da&

C. N interest is $a&a!le – i) clsed !e)re ne &ear

. int de$sits – I) ne $art& dies and the accunt is

clsed- n $enalt& is le,ied

2. Latest #uidelines – $art& is clsin# 49NR accunt

!e)re (aturit& in 5S dllarF !ut *ant t in,est in E5RO-

then $enalt& *ill !e 0.2J;h*e,er nr(all& $enalt& is

J


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. Lan a#ainst NRE de$sit – (ai(u( lan

NRE/49NR:Rs. 10 la"hs nl& irres$ecti,e ) nu(!er )

de$sits held !& the de$sitr

D. O$enin# ) accunt in third currenc& – is $er(itted

. Lan is #ranted – in nati,e currenc& ;sa& ru$ee<

. Interest n lan i) it is re(itted in Indian ru$ees –

BPLR (inus C.2J

00.Lan in Indian Ru$ees – nt t !e credited t NRE

accunt and nl& t NRO accunt and lan in )rei#n

currenc& a(unt can !e credited t NRE accunt r

re$atriated – h*e,er- clsure ) lan accunt )r( NRE

accunt r ad'ust(ent ) de$sits


E@ER9ISE 8 PART: 11



18/423

0 . Tan#i!le net *rth is calculated !& the )r(ula: Share

ca$ital General Reser,es – intan#i!les and )ictitius

assets

01. 3iscellaneus e$enditure and $reli(inar& e$enses are

called 8 )ictitius assets

0C. Gd*ill- $atents- c$&ri#hts etc *hich ha,e n $h&sical

)r( are called – intan#i!le assets

0. Net *r"in# ca$ital (eans: Ttal current assets less

ttal current lia!ilities

02. Net *r"in# ca$ital is als called: Ln# ter( surces

less ln# ter( assets

0. Ln# ter( lia!ilities are als called 8 ln# ter( surces

0D. Ln# ter( assets are als called – ln# ter(

a$$licatins r ln# ter( uses

0. Balance sheet 8 is a state(ent sh*in# the !usinessdetails called assets and lia!ilities ) a )ir( as n a

$articular date

0. %r"in# ca$ital #a$ (eans – ttal currents less current

lia!ilities ther than !an" !rr*in#s

0. The $eratin# $r)it is called 8 #rss $r)it


19/423

. Net $r)it (eans – $eratin# $r)it $lus ther inc(e

(inus ther e$enses and $r,isins )r taes

1. Net sales (eans – Grss sales (inus ecise dut& and

sales returns

C. 9ntin#ent lia!ilities li"e #uarantees- letter ) credits

etc 8 *ill nt a$$ear in a !alance sheet

. Pr)it and lss accunt is 8 a state(ent sh*in# the

inc(e earned and e$enditure incurred !& a )ir(

durin# a s$eci)ic $erid

2. The $rcess ) reducin# a lar#e a(unt ) histrical

)inancial data t a si(ilar set ) (re use)ul in)r(atin )r

decisin8(a"in# $ur$ses is called – )inancial anal&sis . Pr)its (ade in the nr(al curse ) a !usiness and

retained in the !usiness is called – #eneral reser,es

D. 9urrent assets are thse *hich are – )r(in# $art ) the

$eratin c&cle r reali=a!le *ithin t*el,e (nths

. 9urrent lia!ilities are thse *hich are – )r(in# $art )

the $eratin c&cle r $a&a!le *ithin t*el,e (nths

. 3ar#in (ne& )r issue ) an& letter ) credit r a

#uarantee can !e cnsidered as – $art ) current asset10. The rati *hich indicates the a!ilit& ) uic" assets in

(eetin# the current lia!ilit& ruic" lia!ilit& is called –

uic" rati

1 . uic" assets are nthin# !ut – current assets less

in,entr&

11. uic" lia!ilities are nthin# !ut – current lia!ilities less

!an" !rr*in#s

1C. %hen $eratins ) a !usiness result in lsses- it *uld

reduce – sharehlders )unds

1. Bills $urchased !& the !an" *ill !e re)lected as under in

the anal&sis ) the !alance sheet – !ills $urchased is


20/423

sh*n under current lia!ilit& and !ills under sundr&

de!trs in current assets

12. Ad,ance $a&(ent )r( cust(ers *ill !e treated as –

current lia!ilities

1. Ad,ance $a&(ent $aid t su$$liers *ill !e treated as –

current assets

1D. The $siti,e current rati ) a )ir( *ill indicate – the

$resence ) net *r"in# ca$ital

1. The ne#ati,e current rati ) a )ir( *ill indicate – the

a!sence ) an& net *r"in# ca$ital

1. 9urrent lia!ilities (re than current assets – dentes the

a!sence ) net *r"in# ca$ital

C0. Si(ilarl& ln# ter( assets (re than ln# ter( surces

;lia!ilities


21/423

li"e 9((ercial Pa$er- 3ne& 3ar"ets 3utual 4unds-

9erti)icate ) de$sits etc can !e classi)ied as – current

assets

0. In,est(ents in shares/de!entures ) su!sidiaries and

assciates are t !e classi)ied as – nn current assets

. The state(ent *hich sh*s *here the (ne& has c(e

)r( and *here (ne& has#ne is called – )unds )l*

state(ent

1. Sale ) #ds *ill result 8 in surces ) )unds

C. Increase in lia!ilities;ca$ital- reser,es- ter( lan- !an"

,erdra)t- sundr& creditrs- $r,isin )r taes- ad,ance

$a&(ent recei,ed )r( cust(ers etc< – are surces ))unds

. 6ecrease in lia!ilities;ca$ital- reser,es- ter( lan- !an"

,erdra)t- sundr& creditrs- $r,isin )r taes- ad,ance

$a&(ent recei,ed )r( cust(ers etc< – are uses ) )unds

2. Increase in assets;land- !uildin#- (achiner&- nn current

assets- intan#i!le assets- )ictitius assets- cash !alance-

!an" !alance- sundr& de!trs- stc"- ad,ance $aid t

su$$liers etc< – are uses ) )unds. 6ecrease in assets;land- !uildin#- (achiner&- nn current

assets- intan#i!le assets- )ictitius assets- cash !alance-

!an" !alance- sundr& de!trs- stc"- ad,ance $aid t

su$$liers etc< – are surces ) )unds

D. Rent $aid in ad,ance is called – current asset

. Pra$aid insurance is called – current asset

. Pr,isins "e$t )r $a&(ent t*ards taes and an& ther

lia!ilities are called – current lia!ilities

20. A l* current rati *ill indicate – the shrta#e )

*r"in# ca$ital

2 . Stc" turn,er rati dentes – $eratinal e))icienc&

21. 9urrent rati dentes – the liuidit& $sitin ) the )ir(


22/423

2C. Brea" e,en $int (eans – the $int *here the unit

(eets ttal cst !& ttal sales re,enues

2. 9ntri!utin in !rea" e,en anal&sis is – sur$lus a,aila!le

in sales re,enue a)ter (eetin# all the ,aria!le csts

22. 7ldin# le,el ) ra* (aterials is related t – cnsu($tin

) ra* (aterials

2. 7ldin# le,el ) stc" in $rcess is calculated in relatin

t – cst ) $rductin

2D. Le,el ) )inished #ds is in relatin t – cst ) #ds

sld

2. Le,el ) sundr& de!trs is in direct relatin 8 t #rss

sales

2. In )unds )l* anal&sis- an& increase in sundr& creditrs )r

#ds is treated as – surces ) shrt ter( )unds

0. Increase in #rss !lc" ) )ied assets is – uses ) ln#

ter( )unds

. In )unds )l* anal&sis- di,ersin ) )und (eans – ln#

ter( de)icit )unded !& shrt ter( sur$lus

1. In case ) su!rdinatin ) unsecured lans is a,aila!le-

then such unsecured lans shall !e treated as – ln# ter()unds

C. 9har#ea!le current assets are – in,entries and

recei,a!les

. The rati ) ln# ter( lans t net*rth ) the c($an& is

called – de!t euit& rati

2. Ter( lans are cnsidered as ln# ter( lia!ilities *hereas

instal(ents in ter( lan *hich are $a&a!le *ithin a $erid

) t*el,e (nths are called – current lia!ilities

. The liuidit& ) the !an" is deter(ined !& – cn,ertin# its

assets t cash uic"l& and at #d csts

D. A !an">s *n $re(ises- in,est(ents in su!sidiaries

re$resent8 )ied assets


23/423

. Price ) liuidit& is deter(ined !& – nature ) cn,erti!le

assets n hand

. Ad,ance $a&(ent t su$$liers shuld !e treated as –

current assets

D0. 9lai(s a#ainst the !an" nt ac"n*led#ed as de!ts called

the cntin#ent lia!ilities are – )) !alance sheet ite(s

D . Authrised ca$ital- issued ca$ital and su!scri!ed ca$ital 8

*ill nt a$$ear in a !alance sheet

D1. Pre)erence share ca$ital is the cntri!utin

) 8 $re)erence sharehlders

DC. 6i,idends t sharehlders are $a&a!le )r( #eneral

reser,e and – nt )r( ca$ital reser,eD. Sharehlders ) euit& ca$ital are ha,in# ,tin# ri#hts

*hereas – the sharehlders ) $re)erence sharehlders

are nt ha,in# an& ,tin# ri#hts

D2. Reser,es are classi)ied int 8 #eneral reser,e and

re,enue reser,e

D. 9a$ital reser,es are classi)ied int 8 )ied assets

re,aluatin reser,e and share $re(iu( reser,e

DD. Re,enue reser,es are – the accu(ulated earnin#s )r(the $r)its ) nr(al !usiness $eratins

D. 4unds are (ade a,aila!le )r distri!utin ) $r)its

a(n#st the sharehlders )r( – re,enue reser,e

D. Brr*in#s (ade !& the c($an& !& creatin# a s$eci)ic

char#e n assets ) the c($an& are called – secured

lans

0. Brr*in#s (ade !& the c($an& )r *hich n s$eci)ic

securit& is ))ered are called – unsecured lans

. In the case ) a c($an&- )ied de$sits;!& the $u!lic


24/423

1. In the !alance sheet ) a $artnershi$ )ir(- ri#inal cst )

)ied asset less de$reciatin is called – net !lc"

C. The *r"in# ca$ital c&cle ) an& (anu)acturin#

r#ani=atin cnsists ) )i,e sta#es ) cn,ersin called –

ra* (aterials t *r"8in8$r#ressF *r"8in8$r#ress t

)inished #dsF )inished #ds t !illsF !ills t cash and

cash t ra* (aterials

. The uantu( ) *r"in# ca$ital reuire(ents de$ends n

t* )actrs – le,el ) acti,it& and dela& in the *r"in#

c&cle

2. The c($nents ) *r"in# ca$ital reuire(ents are –

ra* (aterials and cnsu(a!lesF *r"8in8$r#ressF

)inished #dsF !ills recei,a!les and e$enses

. 9st ) $rductin cnsists ) – cnsu($tin ) ra*

(aterials;includin# stres< and s$aresF $*er and )uelF

direct la!urF re$air and (aintenanceF ther

(anu)acturin# e$enses $lus $enin# !alance ) stc"8

in8$rcess and (inus clsin# !alance ) stc"8in8

$rcess

D. 9st ) sales cnsists ) – cst ) $rductin $lus$enin# stc" ) )inished #ds (inus clsin# stc" )

)inished #ds

. Net $r)it (inus di,idend $aid/declared is called –

retained $r)it

. Brea"8e,en8$int – is the $int in ter(s ) ru$ees- at

*hich ttal csts eual ttal re,enue- and $r)it euals

=er

0. 9ntri!utin (ar#in is – ttal re,enue less ttal ,aria!le

csts

. 9ntri!utin (ar#in $er unit r unit cntri!utin is –

sellin# $rice $er unit (inus ,aria!le cst $er unit


25/423

1. 9ntri!utin (ar#in rati is – cntri!utin (ar#in $er

unit as a $ercenta#e ) the sellin# $rice

C. 9sts *hich are nt directl& assciated *ith $rductin

and *hich re(ain cnstant )r a rele,ant ran#e )

$rducti,e acti,it& is called – )ied cst

. The (ai(u( $ercenta#e !& *hich e$ected sales can

decline and a $r)it can still !e reali=ed is called – (ar#in

) sa)et&

2. 9sts that are )ied u$ t a certain le,el ) ut$ut !ut *ill

,ar& *ithin certain ran#es ) ut$ut is called – (ied cst

. The ran#e ) ut$ut ,er *hich the a(unt ) ttal )ied

csts and unit ,aria!le csts re(ains cnstant is called –rele,ant ran#e

D. 9sts *hich are directl& assciated *ith $rducin# a

$rduct and *hich ,ar& *ith this le,el ) ut$ut is called –

,aria!le cst

. A,era#e !usiness $er e($l&ee in a !ranch is calculated

!& the rati8 ;a,era#e de$sits a,era#e ad,ances<

di,ided !& nu(!er ) sta)) in a !ranch

. Nu(!er ) accunts $er e($l&ee in a !ranch iscalculated !& the )r(ula: ;Ttal de$sit accunts ttal

!rr*al accunts< di,ided !& the nu(!er ) sta)) in the

!ranch

00.The ntinal $rice at *hich inter8de$art(ental

echan#e ) #ds/ser,ices ta"es

$lace *ithin the c($an& is called – trans)er $rice


26/423


E@ER9ISE – PART:: 0



27/423

01. 5nder Sectin 12 ) the 9($anies Act- the )ilin# )

$articulars )r #ettin# a char#e re#istered *ith Re#istrar )

9($anies )r certain transactins- is the res$nsi!ilit& )

– !rr*in# c($an&

01. P$ular Ban" recei,es a cheue *ith accunt $a&ee

crssin# and s$ecial crssin# in )a,ur ) 3del Ban". The

cashier ) the 3del Ban" $resents this cheue )r cash

$a&(ent t the P$ular Ban" – 9heue is !ein# $resented

!& a !an" and hence it can !e $aid in cash

0C. Hur !an" sanctined a lan ) Rs. .00 la"hs a#ainst the

securit& ) natinal sa,in#s certi)icates in )a,ur ) a $ersn

called – @- *h has e$ired recentl& in a rad accident – The $a&(ent ) Natinal Sa,in#s 9erti)icates *ill !e

!tained !& the !an"

0. 4r )inancin# a $u($set- *hich ) the )ll*in# standards

*ill !e ta"en int accunt + – Bureau ) Indian Standards

02. 3del Ban" issued a )ied de$sit in the na(e ) 3r @ and

his *i)e 3rs. H. 3rs H c(es t the !an" and reuests )r

$re(ature $a&(ent t (eet the e$enses n treat(ent )

3r @ *h is ad(itted in a hs$ital and cannt si#n- !ecause) a )racture in his hands – $a&(ent can !e (ade a)ter

,eri)&in# the )acts and a)ter !tainin# the thu(!

i($ressin ) 3r @ $resentl& in the hs$ital

dul& *itnessed !& the attendin# dctr

0. 3r @ and 3r H are ha,in# a 'int accunt in *hich the&

ha,e n(inated 3r A. On the death ) 3r. @- 3r A

a$$raches the !an" )r $a&(ent – !ein# n(inee- $a&(ent

*uld !e (ade t A and t H and le#al heirs ) @

0D. P$ular Ban" has issued a ter( de$sit recei$t in the

na(e ) 3r A and 3r B t !e $erated as )r(er r sur,i,r.

A a$$raches the !an" )r additin ) na(e ) 3r H - his sn

and als n(inate 3r - his !rther in la*. 7e clai(s that


28/423

the (ne& !eln#s t hi( – *ithut the cnsent ) 3r B-

additin r n(inatin cannt !e acce$ted

0. %hich ) the )ll*in# cannt enter int a ,alid cntract +

– a (inr ;In the case ) illiterate r !lind- i) (a'r-

the& can<

0. Preser,atin ) !an" recrds is (andatr& under *hich

act + – Ban"in# Re#ulatin act8

0. Ban"s are reuired t su!(it t RBI a state(ent )

unclai(ed de$sits. %hat is the ti(e $erid )r cnsiderin#

a de$sit as unclai(ed de$sit + – the de$sit *hich is nt

$erated )r ten &ears

11. As $er 9entral ?i#ilance 9((issin #uidelines- 9?9 has 'urisdictin ,er *hich cate#r& ) the )ll*in# + – Senir

3ana#e(ent Grade ? and a!,e

1. %hich ) the )ll*in# is true *ith re#ard t creatin )

euita!le (rt#a#e + – It can !e created at centres

nti)ied !& the State G,ern(ent nl&.

C. %h had launched RI64 sche(e + – G,ern(ent ) India

1. Tara$re 9((ittee rec((endatins are assciated

*ith *hich ) the )ll*in# + – 9a$ital Accunt9n,erti!ilit&

12. %hat is the (ai(u( a(unt u$ t *hich the a*ard can

!e #i,en !& the Ban"in# O(!uds(an + – Rs. 0.00 la"hs

1. The ca$acit& in *hich the Ban"in# O(!uds(an )unctins

in res$ect ) dis$ute a(n# t* !an"s is "n*n as that )

– Ar!itratr

D. A $ersn nt ha,in# a PAN and nt lia!le t $a& inc(e

ta is reuired t (a"e a declaratin n *hich ) the

)ll*in# – 4r( N: 0

. Lendin# )r a $u!lic c($an& is restricted as $er Sectin

C;d< ;i< – Paid u$ ca$ital and )ree reser,es


29/423

. 5$t *hat etent n cllateral securit& is reuired t !e

!tained !& the !an"s- )r sanctin ) educatin lan – Rs.

D.20 la"hs

0. %hat is the )ull )r( ) the ter( – O B 5 + – O))8shre

Ban"in# 5nits

1 . Ghsh 9((ittee is assciated *ith *hich ) the

)ll*in# as$ects ) !an"in# +– Ban" )rauds- 9ncurrent

audit s&ste( and Pht#ra$h in de$sit accunts

11. %hat is the (ini(u( (aturit& $erid )r *hich

c((ercial $a$er can !e issued + – D da&s

1C. Sectin C1 ) RBI act c,ers *hich ) the )ll*in# as$ect

) )inancial sectr + – Restricts issue ) !ills ) echan#e$a&a!le n de(and t !earer !& an& $ersn ther than

RBI and 9entral G,ern(ent

. Ne#tiated 6ealin# S&ste( relates t *hich ) the

)ll*in# as$ect ) )inancial sectrs + – Su!(issin ) !ids

)r $artici$atin in #,ern(ent securities

12. Real Ti(e Grss Settle(ent is cnnected *ith *hich )

the )ll*in# + – 9entralised $a&(ent s&ste( !ein# run

!& RBI

. %hat is the )ull )r( ) 9IBIL + – 9redit In)r(atin

Bureau ) India Li(ited.

1D. B& an e$rter- *hich ) the )ll*in# "inds letters )

credit are #i,en $re)erences + – Irre,ca!le *ithut

recurse cn)ir(ed.

1. The ter( – 4E6AI stands )r *hich ) the )ll*in# +

– 4rei#n Echan#e 6ealers Assciatin ) India

1. @H Li(ited- a 'int stc" c($an& has !een under

,luntar& liuidatin n the !asis ) reslutin $assed !&

the sharehlders ) the c($an& – Its assets *uld !e in

$ssessin ) the O))icial Liuidatr


30/423

C0. 3rs La"sh(i- runnin# a che(ist sh$ is (aintainin# a

current accunt as $r$rietr- in the na(e ) 3/s La"sh(i

3edics )r the last )i,e &ears. She *ants t n(inate her

(inr sn a#ed si &ears t this accunt – I) the na(e )

the $ersn *h *uld !tain $a&(ent n !ehal) ) the

(inr is als indicated- the n(inatin can !e acce$ted

C . 3r has !een a,ailin# a husin# lan ) Rs. 10.00 la"hs

)r( &ur !ranch *hich has !een sh*in# s(e irre#ularit&

due t irre#ular $a&(ent !ein# (ade !& the !rr*er. Hu

ha,e c(e t "n* that he is ha,in# a current accunt in

the na(e ) his $r$rietrshi$ )ir( at anther !ranch ) the

!an" in anther t*n – !an" can eercise ri#ht ) set ))C1. A $ri,ate li(ited c($an&8AB9 Pri,ated Li(ited *ants t

$en a current accunt *ith &ur !ranch. %hich ) the

)ll*in# are nt reuired t !e !tained )r( the

c($an& + – Intrductin as reuired under KH9

#uidelines

CC. 49NR ;B< – 4rei#n 9urrenc& Nn Resident ;Ban"<

accunts

C. SAR4AESI – Securitisatin and Recnstructin )4inancial Assets and En)rce(ent ) Securit& Interest

Act- 1001

C2. A $*er ) attrne& hlder ) a lc"er hlder a$$raches

)r surrender ) the lc"er – As $er the $*er ) attrne&-

he has the $*ers t $erate the lc"er nl& and nt t

ter(inate the cntract

C. 9heue si#ned !& the a#ent- *h has e$ired- is

$resented )r $a&(ent – Pa&(ent *uld !e (ade

CD. %ill)ul lan de)aulter – Re$rt t !e sent t 9IBIL )r the

lan accunts ) Rs. 12.00 la"hs and a!,e

C. %ill)ul lan de)aulter – Re$rt t !e sent t RBI )r lan

accunts ) Rs. 12.00 la"hs and a!,e


31/423

C. ?ehicle )inanced t $artnershi$ )ir(. 7* re#istratin

*uld !e dne + – In the na(e ) the )ir( *ith the na(e

) the !an" as h&$thecatee

0. Prtectin in case ) (aterial alteratin a,aila!le t the

!an" – 5nder sectin ) Ne#tia!le Instru(ents act

. %hich act de)ines (rt#a#e + – Trans)er ) $r$ert& act8

1

. Ri#ht ) set8)) is a,aila!le t the !an" due t

– 9ntractual !indin#

C. %hen a cheue is endrsed in !lan" – e))ect is that it

!ec(es $a&a!le t the !earer

. In a 'int accunt ) A and B- i) B e$ires- $a&(ent t !e(ade t – A and le#al heirs ) B- i) sur,i,rshi$ clause

is nt there

2. A cheue crssed nt ne#tia!le – It can !e trans)erred

!ut n ne can !ec(e hlder in due curse )r such

cheue

. Eecutr ) a *ill r ad(inistratr *uld si#n the !an"

accunt $enin# )r( as – @- the eecutr/ad(inistratr

)r the deceased A

D. Prtectin t cllectin# !an" )r a cheue is a,aila!le

– 5nder sectin C ) Ne#tia!le Instru(ents Act

. Illiterate *ants t #i,e (andate t s(ene t $erate the

accunt – It can !e $er(itted *ith $r$erl& *itnessed

(andate

. In a 754- *hether Karta can a$$int a#ent + – Hes- he has

the a!slute authrit& )r cnductin# the a))airs ) the

754 !usiness

20. St$ $a&(ent instructin recei,ed )r( a 9$arcener )r a

cheue issued !& the Karta – Ban" *ill nt acce$t


32/423

2 . 9heues recei,ed in clearin# )r $a&(ent )r( an accunt

– Garnishee rder *ill !e a$$lica!le n the a(unt )

cheue- i) returnin# ti(e is still a,aila!le

21. 5sance !ill ) echan#e – Ti(e a,aila!le t dra*ee )r

acce$tance – hurs a)ter $resent(ent

2C. O,erseas Ban"in# 5nit !ranch )r the li(ited $ur$se is

treated as– a )rei#n !ranch ) the !an"

2. RI64 is $eratinalised !& – NABAR6

22. 9((ittee assciated *ith c($uteri=atin and

(echani=atin – Ran#ara'an c((ittee

2. 3ai(u( Li(it )r General 9redit 9ard – !asic li(it )

Rs. 12000.00

2D. 9redit Guarantee 4und – 3ai(u( c,er a(unt – Rs.

.D2 la"hs

2. S$ecial 9rssin# – Pa&(ent can !e (ade t the !an" in

*hse )a,ur the crssin# is – i) the endrse(ents are in

)a,ur ) t* !an"s- $a&(ent t the !an" )unctinin# as

a#ent

2. 4AS stands )r – 4ree Aln#side Shi$ ;an Inc Ter(<

0. 9r&stalisatin ) lia!ilit& ) i($rter *ithin – 0 da&s . Sale and $urchase ) securities n !ehal) ) a cust(er –

Relatinshi$ – !an" a#ent

1. Pririt& ) char#e in case ) a c($an&- *hen re#istered

n the sa(e date – The !an" *hse dcu(ents ha,e !een

si#ned )irst

C. St$ $a&(ent instructin #i,en !& the latter ;nd na(ed< in

case ) )r(er/sur,i,r accunt – !an" *uld nt acce$t

. P*er ) attrne& r (andate in )a,ur ) a (inr )r

lc"er $eratin – *ill !e $er(itted

2. Ad(issin ) ne* $artner in a $artnershi$ )ir( – cnsent

) all $artners reuired


33/423

. Guarantee has !een de)ined in – Indian 9ntract Act8

D1

D. N(inatin $r,isins ha,e !een $r,ided in – Ban"in#

Re#ulatin act

. 9((ittee n 3netar& A##re#ates – H B Redd&

. 3inr a#ed 12 &ears $resents a cheue )r $a&(ent –

Pa&(ent can !e all*ed !& !tainin# si#natures n the

!ac"side ) the instru(ent – N endrse(ent is needed

D0. NOSTRO A99O5NT – An accunt ) a !an" !ranch in

India *ith the !ranch ) a )rei#n !an" utside India

D1. Pririt& Sectr ad,ances tar#et )r )rei#n !an"s – C1J )

Net !an" credit

D. Ran#e ) SLR is !et*een 280J as $er Ban"in#

Re#ulatin act

DC. %h )ies the a#riculture $rduce su$$rt $rice +

– Rec((ended !& Bureau ) A#riculture csts and

$rices

D. P,ert& line is !ased n nutritinal reuire(ent

D2. In case ) n(inatin case- n $ersn ther than the

n(inee t !e entertained as $er Sectin 2B ) Ban"in#Re#ulatin act- unless there is a curt rder

D. RBI ratin# is !ased n 9A3ELS ratin# s&ste(

under !an"in# su$er,isn

DD. 4ied de$sit $re$ared t #i,e securit& )r the !an"

#uarantee – Nt a,aila!le as securit& )r an& ther lan

D. Tier I and Tier II are $arts ) 9a$ital 4und under ca$ital

adeuac& #uidelines. Tier II cannt !e (re than Tier I

D. In case ) c($an& accunts- c($an& is a le#al

$ersn- *hse !na)ides are alread& certi)ied !& RO9-

*hile issuin# certi)icate ) incr$ratin

0. 9($an&>s incr$ratin is le#all& c($lete- *ith issue )

9erti)icate ) Incr$ratin. But $u!lic li(ited c($an&


34/423

cannt c((ence !usiness in the a!sence )

certi)icate ) c((ence(ent ) !usiness

1. S&ste( ) S64 ;Su#ar 6e,el$(ent )und< is cntrlled !&

the 3inistr& ) A#riculture

1. Ban" #ets n $rtectin )r a )r#ed cheue – !ut )r

)r#ed endrse(ent- $a&in# !an" is lia!le

C. %here endrse(ents are irre#ular- !an" des nt #et

an& $rtectin

. Perid all*ed )r $enin# ) an accunt – 2 t 10

(inutes

2. %hat is a #arnishee rder + – an attach(ent rder ) a

c($etent curt n 'ud#(ent de!tr>s de!tr ;in case )

!an" de$sits- the !an"<

. 9heue issued !& a c($an&/)ir( as &ursel)M. Recei,ed

*ith an endrse(ent t issue a !an" dra)t – !an" dra)t *ill

!e issued i) endrse(ent is si#ned !& the authri=ed

$ersn

D. 9urrent accunt in the na(e ) a (inr – can !e $ened

!ut $recautins *ill ha,e t !e ta"en – Sectin 2 ;< )

Ne#tia!le Instru(ents Act – $r,ides $rtectin t$a&in# !an"er in case ) endrse(ent n a !earer

cheue

. A(unt ) 4ied de$sit *here (aturit& $rceeds can !e

$aid in cash – nt t eceed Rs. 10000.00

. 6I9G9 insurance c,er )r de$sit – Rs. .00 la"hs $er

de$sitr ) the !an"

0. Is n(inatin in a 754 accunt is $er(itted + – N

1. Is n(inatin in Pr$rietrshi$ )ir(>s accunt $er(itted +

– Hes

. PAN utin# – (andatr& )r $re$aratin ) dra)t !&

de$sit ) cash – Rs. 20000.00


35/423

C. 9heue issued in )a,ur ) c($an& – Endrsed !& the

c($an& in )a,ur ) a directr – Nt t !e cllected )r

the $ersnal accunt ) the directr

. In a trust accunt n the death ) an&ne ) the trustees

– ne* authrit& reuired

2. Sans recurse endrse(ent – *here endrser reduces

his lia!ilit& !& e$ress *rds

. S$ecial 9rssin# )a,urin# t* !an"s – 9heue can !e

$aid nl& i) ne ) the( is an a#ent and $a&(ent t !e

(ade t the a#ent !an"

D. 3I9R is called 3a#netic In" 9haracter Rec#nitin

. Order Nisi –

st

sta#e in #arnishee rder8 $r,isinal

attach(ent ) accunt

. Prtectin t cllectin# !an" )r dra)t – Sectin C A )

Ne#tia!le Instru(ents Act

100. Bill ) Echan#e has !een de)ined *here + – Sectin 2

) Ne#tia!le Instru(ents Act


36/423


37/423

crrectl& used ;$resu(in# that ntice had !een #i,en

)r din# s<

0. @H and AB9 are t* )ir(s ha,in# the sa(e $artners in

!th the $artnershi$ )ir(s. One )ir( is ha,in# a de!it

!alance and ther )ir( is ha,in# a credit !alance 8 $artners

!ein# sa(e- ri#ht ) set )) can !e a$$lied

0D. A slicitr is ha,in# t* accunts *ith the !an". One in

$ersnal na(e and ther in clients na(e. One cheue is

$resented in clearin#M in clients accunt. In the (eanti(e-

#arnishee rder is ser,ed n the slicitrs> accunt.

%hether !an" *ill $a& this cheue $resented in the

clearin# + – 9heue *ill !e $aid- since it relates t clientaccunt- *hich the slicitr has $ened in the )iduciar&

ca$acit&.

0. 3r 6 is ha,in# ne ,erdra)t accunt *ith us. 7e is als

ha,in# three ther accunts *ith us- ;na(el&< his $ersnal

sa,in#s !an" accunt- 'int accunt *ith his *i)e and ne

#uardianshi$ accunt *ith his sn. Ban" can use ri#ht ) set

)) in *hich ) these accunts + – ri#ht ) set )) is

a,aila!le in $ersnal sa,in#s !an" accunt nl&

0. 3r. Seth is ha,in# current accunt *ith us. 7e has

a$$inted his sn 1 &ears ) a#e- as his a#ent. 9an the

(inr $erate this accunt a)ter this + – Since he is a#ent-

he can $erate it

0. 3r. Shar(a has #i,en irre,ca!le $*er ) attrne& t 3r

?er(a t $erate his current accunt as an a#ent )r ne

&ear. A)ter three (nths- he has decided and #i,es ntice t

the !an" that 3r. ?er(a>s authrit& stands *ithdra*n. On

the cntrar&- 3r.?er(a>s $lea is that since he has !een

a$$inted as a#ent )r ne &ear- he has e,er& ri#ht t

$erate the accunt. %hat *ill !e the $sitin ) the !an"


38/423

n* t deal *ith it +– The !an" has t st$ the authrit&

) 3r. ?er(a )r( !ein# used.

. A (inr 1 &ears ) a#e- is ha,in# a )ied de$sit ) Rs.

10000.00 *ith the !an". 7e reuested !e)re (aturit&

$a&(ent ) the de$sit. 9an !an" all* !e)re (aturit&

$a&(ent + – the !an" can acce$t the reuest ) the

(inr

1. Incase a (inr is a$$inted as a n(inee )r a ter(

de$sit and *hen death ) the de$sitr ta"es $lace –

$a&(ent can !e !tained !& the #uardian ) the (inr

n his !ehal)

C. A)ter the death ) lc"er hlder his dau#hter c(es t the!an" *ith the "e& t $erate the accunt. %hat is the

curse ) actin that *ill !e su##ested !& the !an" + – #et a

letter ) ad(inistratin

1. A c($an& is ha,in# i((,a!le $r$ert& in Ban#alre- its

re#istered ))ice is in 9hennai and the c($an& is *illin# t

a,ail !an" li(its in 3u(!ai. %here the E3T can !e created +

– an& ne ) the a!,e cities $resu(in# that all are

nti)ied centres

12. %here a c($an& is )ailin# in )ilin# $articulars ) char#e

n its assets- *ith Re#istrar ) 9($anies- *h has #t the

ri#ht t )ile $articulars ) the char#e *ith the re#istrar )

c($anies + – 9reditrs ) the c($an&

1. In case ) nn8re#istratin ) char#e n assets- in case )

a c($an&- the char#e *ill !ec(e – ,id !e)re the

liuidatr

1D. A trust is (aintainin# accunt *ith the !an" $erated !&

three trustees. One ) the( issued a cheue )r credit t his

sa,in#s !an" accunt. %hat $recautins !an" *ill ta"e +

– 9heue cannt !e $aid unless $r$er enuir& is (ade

and the !an" is satis)ied


39/423

1. %hat is the ceilin# ) su!sid& under SGSH sche(e )r sel)

hel$ #ru$ + – Rs. .12 la"hs

. In case ) K99- *hat *ill !e the uantu( ) insurance in

case ) death ) the !rr*er;)ar(er< + – Rs. 20000.00

10. ?ehicle lan )inanced !& !an"s are re#istered *ith Rad

Trans$rt Authrit& *ith the sle !'ecti,e ) – #ettin# the

char#e in )a,ur ) the !an" s that !rr*er can nt

sell the ,ehicle *ithut the $er(issin ) the !an"

1 . 5nder 9redit Guarantee 4und sche(e- the (ai(u(

a(unt ) clai( )r nn )und !ased li(its is – nne

11. 4r #ru$ e$sure $ur$se- the nn )und !ased li(it

sanctined t a !rr*er are t !e rec"ned at *hich ) the)ll*in# – 00J

1C. A c($an& is ha,in# stc" ) Rs. 0 la"hs stred at its

#d*n. It is insured )r Rs. 10 la"hs. The c($an& has sent

stc"s )r Rs. la"hs )r $rcessin# at s(e distant $lace

*here it #ets destr&ed at the $lace ) $rcessin# !&

)ire. %hat a(unt ) clai( *ill !e ad(inissi!le + – Nil

. 9ntri!utin in !rea" e,en $int is eual t – sellin# $rice

less ,aria!le cst

12. %hich ) the )ll*in# is the !'ecti,e ) intrductin )

KH9 + – 9hec" undesira!le cust(ers and st$ (ne&

launderin#

1. @H Li(ited- a c($an&- has $aid ca$ital and )ree

reser,es ) Rs. 100 crres and it has alread& !rr*ed a

su( ) Rs. 120 crre n ln# ter( !asis. It *ants t raise

de!entures ) se,en &ears. %hat statutr& c($liance- the

c($an& *ill need t (a"e + – The c($an&>s

sharehlders *ill !e reuired t $ass a reslutin in the

#eneral !d& (eetin# authri=in# the !ard ) directrs

)r the $r$sed !rr*in#


40/423

1D. 6i#ital si#nature (eans – a cded cn)ir(atin in

electrnic )r( attached t an electrnic recrd

1. Pari $assu char#e in case ) a cnsrtiu( ad,ance !&

!an"s t a !i# !rr*er (eans *hich ) the )ll*in# +

– Each !an" *ill ha,e a $r8rata char#e n the securit&

in the rati ) their utstandin# *ithin the li(its

a$$r,ed !& the cnsrtiu(.

1. %hich ) the )ll*in# net *r"in# s&ste(s *ill !e used

!& an r#ani=atin ha,in# ))ice in ne !uildin# + – Lcal

Area Net %r"

C0. An ri#inal dra)t is re$rted as lst. Its du$licate is issued

and is $resented in clearin#. It is su!seuentl& )und thatthe ri#inal dra)t is alread& $aid in !an">s recrds

– 6u$licate *ill !e returned un$aid

C . A endrsed a cheue in )a,ur ) B and B endrsed it t 9

*h 'ust si#ns the cheue. The cheue is stlen !& 6- *h

endrsed the cheue in )a,ur ) Ash" ;an ld creditr )

the 6< )r ,alid cnsideratin. Ash" t" the $a&(ent )

the cheue. In this case Ash" is lia!le t *h( + – 7e is

nt lia!le t an&ne since he is a hlder in due curse

C1. A cheue dated: 1.10.00 is $resented )r $a&(ent n

Oct!er D-00. It is h*e,er !ser,ed that the cheue

!" )r( *hich the cheue *as issued had !een issued t

the cust(er n .10.00. %hat *uld the !an" t d

*ith the cheue + – The cheue *uld !e $aid- i) it is

ther*ise in rder

CC. Hur !ranch recei,es a cheue *ritten in three di))erent

in"s and three hand*ritin#s – the cheue *ill !e $aid

C. %hat d &u (ean !& S*a$ + – si(ultaneus $urchase )

)r*ard and sale ) s$t currenc&


41/423

C2. %hat is ,er!u#ht $sitin in case ) 4rei#n Echan#e +

– 4rei#n echan#e $urchased is (re than )rei#n

echan#e sld

C. In the case ) cash credit accunt- the )irst credit *ill !e

ad'usted a#ainst *hich ) the )ll*in# + – It *ill !e set8))

a#ainst the )irst de!it

CD. %hen a $art& is all*ed $st8shi$(ent credit- *hat is the

(ai(u( nr(al ti(e $erid- durin# *hich it is e$ected t

#et the )rei#n echan#e reali=ed + – si (nths

C. %hich ) the )ll*in# (eets the )eature ) a de)erred

$a&(ent #uarantee + – A #uarantee *here $a&(ents t !e

(ade in instal(ents are #uaranteed

C. A )ir( recei,es ra* (aterial )r( a!rad )r $rcessin#

there) and su!seuentl& t !e re e$rted a)ter

$rcessin#. %hat "ind ) #uarantee shall !e issued )r this +

– Per)r(ance #uarantee.

0. Hu are a$$rached !& an SSI unit that is en#a#ed in an

industr&- *here ra* (aterial is a,aila!le in a $articular

seasn ) t* (nths nl&. The assess(ent ) *r"in#

ca$ital )r this *uld !e (ade !& the !an" – as $er cash!ud#et (ethd

. The ris" that arises t a !an" due t )ailure ) internal

$rcess is called – $eratinal ris"

. A $artnershi$ )ir( !rin#s additinal )unds in the !usiness-

!ut it creates )ied assets ut ) these )unds- *hich ) the

)ll*in# rati *uld !e a))ected + – 6e!t Euit& Rati

C. 9($ared t the $re,ius- there has !een increase in the

)ied assets ) a )ir( t the etent ) Rs. 2.00 la"hs !ut its

ln# ter( lia!ilit& and net *rth increased !& Rs. .00 la"hs.

It *uld e))ect – current rati

. The c($arisn ) the !alance sheet ) a )ir( re,eals

that its ln# ter( uses are l*er at D2J ) its ln# ter(


42/423


43/423

2. I) the de$sitr !tains a lan a#ainst a )ied de$sit-

na(e ) anther $ersn can !e added – On re$a&(ent )

lan

2. Pre$aid insurance is classi)ied as – 9urrent Asset

0. Net %r"in# 9a$ital – 9urrent assets (inus 9urrent

lia!ilities r Ln# ter( surces less Ln# ter( uses

1. %r"in# ca$ital li(it ) Rs. 0 crres can !e sanctined

under *hich (ethd + – 9n,entinal (ethd r Tandn

9((ittee

1. 5nder Na&a" 9((ittee- the le,el ) sales is – 2 ti(es

the (ini(u( *r"in# ca$ital li(it r ti(es the

(ini(u( le,el ) *r"in# ca$ital

C. Ad,ance all*ed t a State S$nsred 9r$ratin )r n

lendin# t *ea"er sectins in rural areas – Indirect )inance

t a#riculture

. A(unt ceilin# )r re$rtin# under K H 9 – Rs. 0 la"h

su((atin

2. 9redit Guarantee 4und sche(e –!ene)it t !an" – l*er

ca$ital adeuac& and l*er $r,isin in case ) accunt

!ec(in# NPA

. NPA can re(ain )r 0 da&s as standard assets and

!e&nd that it *ill !e treated as su!standard assets

D. RBI c((ittee n $rcedures and audit – 7eaded !& S.S

Tara$re

. 6eductin )r( salar& )r unin su!scri$tin – 9hec" ))

)acilit&

. State(ent ) unclai(ed de$sits t Reser,e Ban"

) India – 5nder sectin 1 ) Ban"in# Re#ulatin act8

D0. 6e)initin ) h&$thecatin – descri!ed in Sar)aesi act 8

1001


44/423

D . 9heue *ritten in di))erent scri$ts – sa& Ta(il and En#lish

– ,alid and it can !e $aid

D. 6e!tr turn,er rati – indicates e))icienc& ) cllectin

) !" de!ts

DC. In case ) )r(er and sur,i,r de$sit – additin ) na(e

r clsure ) accunt- $ssi!le *ith si#nature ) all

accunthlders

D. On $a&(ent ) lan !& the #uarantrs- *hat "ind ) ri#ht

is ,ested *ith hi( + – Ri#ht ) su!r#atin

D2. %hat is the !'ecti,e ) SGSH sche(e + – T !rin# $e$le

!el* $,ert& line t a!,e $,ert& line

D. Nn ne#tia!le crssin# – a *arnin# t endrseeDD. %hat "ind ) char#e is $ssi!le n recei,a!les +

– assi#n(ent

D. In h&$thecatin- *ith *h( is the $ssessin r

*nershi$ + – !rr*er

D. Lc"er n either r sur,i,r $eratin !asis – One re$rts

lss ) "e& and the ther c(es t $erate *ith the "e&

– lc"er is all*ed nl& !& 'int $eratin in this

situatin.0. Bailee and !ailr de)ined in – Indian 9ntract Act

. 6ishnur ) cheues !& (ista"e – Pa&ee clai(s da(a#es

)r( !an" – !an" is lia!le t dra*er nl&

. Accunt ) )rei#n !an" *ith a !ranch ) !an"

in India – ?str

C. I) )r#ed Rs. 200 currenc& nte is recei,ed at the cunter

– a state(ent recei,ed )r( the tenderer and the

currenc& nte ha,e t !e handed ,er t the $lice

authrities

. Btin# is called – startin# a c($uter

2. In$ut – data )ed int a c($uter


45/423

. Sellin# ) )rei#n echan#e – deli,er& ) )re t the

cust(er in lieu ) Indian ru$ees

D. La* char#es t !e de!ited t – Pr)it and Lss accunt

. 3e(randu( ) assciatin ) a c($an& – a dcu(ent

#uidin# relatinshi$ *ith third $arties r utsiders

. 5nder8insurance ) securit& – lss can ccur due t

a$$licatin ) a,era#e clause

0. 4r ac"n*led#(ent ) de!t- the 9entral G,ern(ent has

$rescri!ed the $a&(ent ) sta($8dut& at *hich ) the

)ll*in# rates – di))erent in each State as $rescri!ed !&

the State G,ern(ent

. %hen a !an" #rants a lan t a !rr*er n the !asis )h&$thecatin ) the assets- *ith *h( des the

$ssessin and *nershi$ re(ain +– !rr*er

1. %hat is the a(unt ) li(it in res$ect ) $ririt& sectr

ad,ances in #eneral- *here the !an"s d nt char#e

ins$ectin and ser,ice char#es + – Rs. 12000.00

C. The ter( 8 (ul!err& relates t– Sericulture

. %hat is the (ai(u( a(unt ) a transactin- that can !e

carried under electrnic )unds trans)er ;E 4 T< )acilit& !ein#$erated !& RBI – n ceilin#

2. %hich ) the )ll*in# c((ittees- intrduced the ter( –

*r"in# ca$ital ter( lan re$resentin# ecess !rr*in# !&

a !rr*in# unit + – Tandn 9((ittee

. Ta deducted at surce *hile (a"in# $a&(ent t a

cntractr shuld !e de$sited *ith the G,ern(ent *ithin

a $erid ) – se,en da&s )r( the date ) deductin

D. %hich ) the )ll*in# is the )r(ulae )r *r"in# ut

current rati in res$ect ) a tradin# cncern + – 9urrent

assets/9urrent lia!ilities


46/423

. %hile sanctinin# a ter( lan t a c($an&- *hich ) the

)ll*in# ratis is (st rele,ant and ta"en int accunt !&

the )inancin# !an" + – 6e!t Ser,ice 9,era#e Rati

. %hich ) the )ll*in# is nt re)lected !& the stud& )

)unds )l* state(ent ) a !rr*in# unit + – 7* the

$r)its ha,e !een earned +

100.The re#istratin ) *hich ) the transactins n

$a&(ent ) sta($ dut& is (andatr& in India + – Si($le

3rt#a#e


E@ER9ISE – PART:: 0D

0 . 4rei#n currenc& lans utside India is a,aila!le a#ainst

securit& ) )unds held in the accunts ) – 49NR and NRE

01. RBI has intrduced 9($rehensi,e Sin#le Return ;9SR< )r

cllectin ) data n – Nn Resident de$sits

0C. Sectin 1C ) the Securitisatin and Recnstructin )

4inancial Assets and En)rce(ent ) Securit& Interest Act

001- $r,ides )r a 0 da&s ntice t a !rr*er t



47/423

dischar#e in )ull his lia!ilities !e)re such actin is

initiated

0. In)l* and ut)l* ) 4rei#n Echan#e is cntrlled !&

the #,ern(ent ) India under the $r,isin ) – 4E3A

02. The ,alidit& ) i($rt licence re)ers t – the date n r

!e)re *hich the #ds shuld !e shi$$ed !& the

,erseas su$$lier

0. A letter ) credit- $ened in lieu ) #uarantee in cuntries

li"e a$an is called as – stand !& letter ) credit

0D. The last date/e$ir& date ) the letter ) credit is the last

date )r – su!(issin ) dcu(ents t ne#tiatin# !an"

0. 6e)erred Pa&(ent Guarantee is a )inancial #uarantee0. %hich c((ittee has rec((ended t $r,ide 0J t SSI

sectr u$t Rs. 2 la"hF 0J t SSI units (re than Rs. 2

la"hs u$t Rs. 2 la"hs and !alance t SSI units a!,e

Rs. 2 la"hs + – Ka$r 9((ittee

0. IBA>s GRA9E has !een re$laced !& – IBA>s !an"in#

$ractices #uidelines

. Ttal *r"in# ca$ital reuire(ent ) SSI units under the

turn,er (ethd ) *r"in# ca$ital assess(ent- *uld !eeui,alent t reuire(ent ) (ini(u( C (nths ) the

annual ut$ut ,alue

1. The e$rt declaratin )r( used )r s)t*are in nn8

$h&sical )r( is – s)te

C. BS49 *uld ta"e u$ c($laints ) )rauds in,l,in# Rs. 2

crres and a!,e

. A)ter recei$t ) attach(ent rder )r( the Inc(e ta

authrities – the !an"er can eercise ri#ht ) set8)) in

res$ect ) eistin# clai( a#ainst the cust(ers

2. The !ill is dra*n in Lndn and is acce$ta!le/$a&a!le in

3u(!ai and the dra*ee is in 9hennai. The !ill is – a

)rei#n !ill


48/423

. The c((ittee cnstituted !& RBI )r stud&in# the

)unctinin# ) Sel) 7el$ Gru$s and nn8

G,ern(ent r#ani=atins *as headed !& *h( ) the

)ll*in# + – Shri S.K. Kalia

1D. A ti(e ) hurs ;ecludin# hlida&s< is all*ed t the

dra*ees ) *hich ) the )ll*in# + – all usance !ills

. E,er& !an"in# c($an& is reuired t $re$are its )inal

accunts i.e. Pr)it and Lss accunt and Balance Sheet as

n C1st 3arch e,er& &ear in the $rescri!ed )r(s as $er –

Ban"in# Re#ulatin Act-

. In the case ) ti(e !arred de!t the ri#ht ) set )) 8 can

!e eercised !& the !an" $r,ided the de!ts are due in

the sa(e ri#ht

10. A su( ) Rs. 0000.00 is due )r( @. The lan is secured

!& the #uarantee ) H. H>s accunt *ith the !an" has a

credit !alance ) Rs. C0000.00. 9an the !an" eercise ri#ht

) set )) a#ainst the !alance in H>s accunt + 8 The !an"

can eercise ri#ht ) set )) nl& *hen the !rr*er

)ails and a de(and is (ade n the #uarantr

1 . AM – a )ar(er *nin# land- *as #ranted a tractr lan*ith B> as c8!rr*er. The tractr *as re#istered nl& in

the na(e ) AM. %hen !an" )iled suit )r rec,er& a#ainst A

and B - B denied ha,in# recei,ed an& cnsideratin. %hat

are the ri#hts ) the !an" + – !an" has ri#hts a#ainst A

and B – !th

11. %here the cheue !ears crssin# *ith the na(e ) a

!an"er- such a crssin# *ill !e called – S$ecial crssin#

1C. In the case ) discre$anc& !et*een the a(unt e$ressed

in *rds and )i#ures- ) a cheue- *hat *ill &u d + – The

a(unt in *rds shuld !e $aid

. 5nder $led#e- the $h&sical $ssessin ) the #ds *ill

!e *ith the !an"


49/423

12. Hu ha,e !een a$$rached !& the secretar& ) a re$uted

$u!lic trust- *hich has )ur trustees )r $enin# a sa,in#s

!an" accunt ) the trust. %hile ins$ectin# the trust deed

&u !ser,e that the deed des nt cntain an& $r,isin

a!ut the $eratin ) the !an" accunt. In such a situatin-

*hat *ill &u d + – Insist n $eratin !& all the trustees

'intl&

1. %hen ri#inal dra)t and the du$licate is $resented thru#h

clearin# n the sa(e da&- *hat *ill &u d + – Pa& the

du$licate and return the ri#inal

1D. A (inr is nt c($etent t recei,e a cheue as – dra*ee

1. Sans recurseM endrse(ent is ne *hich – shuld nt!e $aid until the )ll*in# !usiness da&

1. Sectin 1C1 ) the Ne#tia!le Instru(ents Act 11 #i,es

$rtectin t the cllectin# !an"er a#ainst the ris" )

cn,ersin. The !ene)its ) the sectin *ill !e a,aila!le

t the !an"er *hen he cllects8 a crssed cheue )r a

cust(er in #d )aith and *ithut ne#li#ence

C0. In the case ) !ill ) echan#e – crssin# has n (eanin#

C1. A Ne#tia!le Instru(ent cannt !e en)rced a#ainst a(inr *hen he si#ns it as – acce$tr ) a !illF (a"er ) a

$r(issr& nteF dra*er ) a cheue

C1. A cheue is $a&a!le t A r rder. A endrses it in )a,ur

) B. B lses the cheue. 9 )inds it and a)ter )r#in# the

endrse(ent ) B deli,ers it t 6. 6 )r ,alua!le

cnsideratin )urther endrses it t E. The cheue is

dishnured. %hat are the ri#hts ) E n the cheues + – E

can rec,er (ne& nl& )r( 6.

CC. Prtectin is a,aila!le t the $a&in# !an"er in res$ect )

– cheues dra*n $a&a!le t rder $ur$rts t !e

endrsed !& r n !ehal) ) $a&eeF $a&(ent in due


50/423

curse ) crssed cheues and cheues n *hich

alteratin is nt a$$arent

C. E,en a)ter recei,in# the ntice ) (inr a!ut his

attainin# the (a'rit&- i) the !an" des nt res$nd t in)r(

his $tin – 7e *ill !e held res$nsi!le )r all the acts )

the )ir( nt nl& a)ter his attainin# the (a'rit& !ut als

*ith retrs$ecti,e e))ect

C2. I) the accunt is in de!it and the $artner is retirin# – st$

$eratin i((ediatel& and rule )) the accunt- !tain

an ac"n*led#(ent ) lia!ilit& nt nl& )r( the retirin#

$artners !ut als )r( the cntinuin# $artner and ser,e

ntice n the retirin# $artner that !an" cntinues t

hld hi( lia!le )r the utstandin# as )r( the date the

!an" is $ut n ntice ) the retire(ent

C. 3r. I#nrance- an illiterate- ha,in# a sa,in#s !an"

accunt is #in# a!rad )r a shrt $erid- reuests the

!an" t all* 3r. Literate t $erate his accunt. %hich

dcu(ent &u *ill $r$se *hich is the easiest t sl,e his

$r!le( + – P*er ) attrne& re#istered *ith the

(a#istrate

CD. A c($an& is said t !e re#istered *hen it #ets

– 9erti)icate ) incr$ratin )r( the Re#istrar )

9($anies

C. There is a current accunt in the na(e ) 3/s Ka$il 6e,

and Sns- a 7indu 5ndi,ided 4a(il& *hich cnsists ) 3r.

Ka$il 6e,- his *i)e – Su(an Lata and t* sns – 6ara Sin#h

a#ed ei#ht &ears and Tin"u a#ed ten &ears res$ecti,el&.

Accunt is $erated !& 3r. Ka$il 6e, as Karta ) the )a(il&.

The !an" is in)r(ed ) the death ) 3r. Ka$il 6e, in this

case – the accunt *ill !e $erated !& Su(an Lata as a

#uardian ) the eldest (ale (e(!er ) the )a(il&


51/423

C. 5nder eecutin ) a 9i,il 6ecree the )ll*in# can !e

attached – ri#ht t )uture (aintenanceF salar& t the

etent ) the )irst 000 ru$ees and t*8third ) the

re(ainderF tls ) artisans and #,ern(ent securities

0. The li(itatin $erid )r )ilin# a c($laint !e)re

O(!uds(an (nies – One &ear )r( the date n

*hich the !an" has re'ected the $resentatin and sent

)inal re$l&

. Shar(a and Pra,een ha,e a 'int accunt. Inc(e ta

de$art(ent ser,ed an attach(ent rder n the !an" in the

accunt ) Pra,een– can attach 20J ) the !alance in the

'int accunt

. @ has !een sanctined a lan ) Rs. 2000.00 #uaranteed

!& H. A)ter s(eti(e- @>s reuest )r an anther lan ) Rs.

2000.00 *as acce$ted *ithut the "n*led#e ) H. The

#uarantee ) H is – a,aila!le t the etent ) Rs.2000/8

nl&

C. I) a usance !ill is returned un$aid- a suit shuld !e )iled

– *ithin three &ears )r( the due date

. An euita!le (rt#a#e can !e created – !& de$sitin#the title deeds at nti)ied centres *ith the intentin t

create the securit& ) the lan

2. A dcu(ent eecuted )r lan t a c($an& – (ust !e

eecuted *ith the c($an&>s c((n sealF (ust !e

eecuted n !ehal) ) the c($an& and (ust !e

eecuted !& the authri=ed ))icials

. The e))ect ) a dcu(ent !ein# ti(e !arred !& li(itatin

is – n le#al re(ed& *ill !e a,aila!le

D. The rate at *hich RBI rediscunts !ill ) echan#e is

called – Ban" rate


52/423

. In relatin t a c($an&- the ter( – 5LTRA ?IRESM –

(eans – an actin utside the 3e(randu( )

Assciatin

. A has sa,in#s !an" accunt and *ants t (a"e

n(inatin in )a,ur ) his (inr sn – N(inatin in

)a,ur ) a (inr can !e all*ed nl& *hen a $ersn is

als a$$inted/n(inated *h can recei,e the $a&(ent

n !ehal) ) the (inr i) the accunthlder dies durin#

his (inrit&

20. I) the )e(ale e($l&ed (a"es a c($laint t the e($l&er

)r seual harass(ent at *r" $lace- h* this situatin can

!e handled + – Ban" is !und t in)r( the a$$r$riateutside in,esti#atin# authrit& a!ut the c($laint as

the ))ence relates t (ral tur$titude.

2 . %hat is called %r"in# Kn*led#eM in 7indi + – 7indi as

a su!'ect at 3atriculatin

21. The ne* cate#r& ) accunt i.e. – S$ecial 3entin Asset

cate#r& M r S$ecial %atch 9ate#r&M intrduced !& RBI is

)r – internal (nitrin# !& !an"s

2C. The sale $rice ) a $en is Rs. 0.00 $er $iece. ?aria!lecst is Rs. .00 $er $iece. O,erhead cst ) unit is Rs.

10000.00. At *hat sales ,lu(e- *ill the unit !rea"

e,en + – 10000

2. The #uarantr ) a cust(er accunt has the ri#ht – t !e

in)r(ed nl& a!ut the etent ) his lia!ilit&

22. Lans/,erdra)ts t )ar(ers a#ainst )ied de$sits/Indira

?i"as Patras etc are t !e classi)ied as – indirect )inance

t a#riculture

2. Ne* $ri,ate sectr !an"s are reuired t ha,e 12J ) the

!ranches in rural/se(i ur!an areas

2D. 9ustd& ) !ill ) ladin# is – *hen !ill is su!(itted in the

custd& ) the !an"


53/423

2. A NRI *ants $re(ature encash(ent ) 49NR !e)re ne

&ear. The interest rate *ill !e $aid as )ll*s: 8 n interest

is t !e $aid i) the de$sit has nt run )r (ini(u(

$rescri!ed $erid – i.e. ne &ear

2. O,erseas Ban"in# 5nits are $r$sed t !e ee($ted

)r( – 9RRF SLR and Pririt& Sectr

0. 5nder IN9OTER3S>- the ter( 4OBM indicates – 4ree n

!ard

. The statutr& authrit& *h cntrl Trade 9ntrl is

– 6G4T;6irectr General ) 4rei#n Trade<

1. Nn8 Resident Ordinar& ;NRO< accunts (a& !e $ened !&

(eans ) – direct in*ard re(ittance )r( a!rad in ana$$r,ed (annerF !& encash(ent ) )rei#n currenc&

ntes/cins and )rei#n tra,elers cheues and !&

cn,ersin ) the eistin# resident accunts

C. 4r the ,isit t the )ll*in# cuntries- a tra,eler is nt

eli#i!le )r an& !asic tra,el uta – Ne$al and Bhutan

. %hat d &u understand !& the *rd – SIONM +

– Standard in$ut/ut$ut nr(s

2. I) the e$ir& date ) a L9 )alls n a hlida& the dcu(entsare t !e su!(itted t the ne#tiatin# !an" – n the

$recedin# *r"in# da&

. I) the letter ) credit is silent a!ut $artial shi$(ent r

transshi$(ent – !th are $er(itted

D. 6ela&ed rene*al r re,ie* ) a !rr*al accunt )r( the

due date *uld render the accunt as NPA i) the dela& is

0 da&s r (re

. Sectin 1;< ) Ban"in# Re#ulatins Act $r,ides that

!an" cannt $ssess shares ) an& c($an& as $led#e-

(rt#a#ee r a!slute *ner- i) – !th the a!,e li(its are

a$$lica!le- !ut *hiche,er is less


54/423

. %hich sectin ) the res$ecti,e act c,ers the SLR +

– Sectin 1 ;1A< ) Ban"in# Re#ulatin Act –

D0. A!hina, endrses a cheue in )a,ur ) Bha*ana and

*rites the *rds – ntice ) dishnur *ai,edM – it is a

restricti,e endrse(ent

D . The !ill is dra*n in 3u(!ai and is acce$ta!le/$a&a!le in

9hennai- !ut the dra*ee is at Ne* Hr". The !ill – is an

inland !ill

D1. As $er sectin 2 ;A< ) Ban"in# Re#ulatin Act- 1

– n(inatin )acilit& has !een #ranted )r !an" de$sits

DC. As $er sectin 0- 1 and 1A ) RBI act- Reser,e Ban"

) India re#ulates )l* ) credit t ecn(& !& ,ariatinsin SLR and 9RR

D. SE34E@8IM $ertains t – settin# u$ ) SSI units

D2. Ra'arani – a 7indu lad& a)ter death ) her hus!and (arries

Ra' Ku(ar. Therea)ter Ra'rani a$$raches &u as a natural

#uardian ) her sn )r( earlier hus!and. %h *ill !e the

#uardian + – (ther

D. 5nder sectin ) Ne#tia!le Instru(ents Act – a (inr

can dra*- acce$t endrse and ne#tiate !ills )

echan#e- $r(issr& ntes r cheues !indin# all

$arties ece$t hi(sel)

DD. Persns *h are nt alltted PAN are t (a"e

declaratins – n 4r( N: 0

D. A !alance sheet sh*s )ied assets and nn8current

assets as Rs. C0 la"hs. I) there are n intan#i!le assets and

the ln#8ter( surces are Rs. 1 la"hs. %hat is the net

*r"in# ca$ital + – Rs. 1.00 la"hs

D. The $erusal ) a !alance sheet re,eals that the current

rati is :1. The net *r"in# ca$ital is Rs. 100000.00. Arri,e

current lia!ilities:. 8 The current lia!ilities *ill a(unt

t: 8 Rs. 00000.00


55/423

0. In a !alance sheet- a(unt ) ttal assets is Rs. 10 la"hs-

current lia!ilities – Rs. 2 la"hs and ca$ital and reser,es – Rs.

la"hs. %hat is the de!it euit& rati + – .2:

. Ttal ) lia!ilit& side ) a !alance sheet is Rs. 1 la"hs-

de!t euit& rati – :1 and ln#8ter( lia!ilities ) Rs. la"hs.

I) current assets are Rs. .D2- the net *r"in# ca$ital *ill

!e – Rs. D2000.00

1. Pr)it t sales is J and a(unt ) $r)its is Rs. 2 la"hs

– Sales *ill !e Rs. 120 la"hs

C. 9ntin#ent lia!ilities are thse – *hich (a& arise r (a&

nt arise

. In assess(ent ) *r"in# ca$ital reuire(ents- the$eratin# c&cle ) the !usiness/industrial acti,it& cnsists )

*hich ) the )ll*in# $erid and $rcesses + – acuisitin

and stra#e ) ra* (aterials a)ter deductin# the $erid

) credit all*ed !& the creditrsF stra#e ) )inished

#ds !e)re releasin# the( )r sale and $erid credit

all*ed t de!trs

2. On $erusal ) a !alance sheet it is re,ealed that the

current rati is C:1 and the net *r"in# ca$ital is Rs.0000.00. The current assets *ill a(unt t Rs.

10000.00

. 9redit li(it )r (ar"etin# ) cr$s ;$led#e )inancin#< )r

)ar(ers has !een raised )r( (nths t 1 (nths

D. 9((ittee n 9a(els Ratin# *as headed !& – S.

Pad(ana!han

. The c((ittee n ratinali=atin ) interest rates n

s(all sa,in#s *as headed !& – H ? Redd&

. %hat is Ri#ht ) rede($tin + – n the re$a&(ent )

the de!t- the (rt#a#r has the ri#ht t #et !ac" the

(rt#a#ed $r$ert&


56/423

0. The current rati ) a c($an& re(ained cnstant )r t*

cnsecuti,e &ears !ut uic" Rati decreased )r( 1.:1 t

1:1. In the net &ear- *hich ne ) the )ll*in# cnclusins

is certainl& true !ased nl& n this data + – 9($an&>s

stc"s n a $ercenta#e ) current assets ha,e

increased in the secnd &ear

. Hur !ranch has sanctined a lan ) Rs. 2000/8 t A(it-

*h it *as nticed later- *as a (inr. Shri Bha(an had

#uaranteed the lan. – Since A(it- !ein# a (inr- he is nt

lia!le and as such #uarantr is als nt lia!le as his

lia!ilit& is c8eistence *ith the $rinci$al de!tr

. AB9 and 9 ha,e !een sanctined cash credit li(it ) Rs.10 la"hs a#ainst $aid stc"s ;(ar#in8C0J< and !" de!ts

u$t 0 da&s ;(ar#in 20J *ith a su!(it ) Rs. la"hs. The

c($an& had stc"s *rth Rs. 0 la"hs. Sundr& 9reditrs

)r #ds Rs. 10 la"hs and !" de!ts u$t 0 da&s – Rs. 12

la"hs. 7* (uch a(unt can the& dra* a#ainst this

securit& + – Rs. .00 la"hs

C. In assess(ent ) *r"in# ca$ital reuire(ents- the

$eratin# c&cle ) the !usiness/industrial acti,it& cnsists ) *hich ) the )ll*in# $erids and $rcessin# +

– Acuisitin and stra#e ) ra* (aterials a)ter

deductin# the $erid ) credit all*ed !& the creditrs

and stra#e ) )inished #ds !e)re releasin# the( )r

sale

. %hile anal&=in# the !alance sheet ) 3/s A(ar and c- &u

ntice that ln# ter( uses are 10J ) ln# ter(

surces. Such a $sitin *uld #enerall& indicate –

deteriratin in current assets

2. The char#e that the !an" #ets in res$ect ) su$$l& !ills is

– assi#n(ent


57/423

. Ri#ht ) set )) cannt !e eercised !& the !an" in

res$ect ) – a cntin#ent de!t li"e #uarantees and letter

) credits

D. S$ecial crssin# (eans – an& !an">s na(e *ith r

*ithut t* $arallel lines

. %hen a !ill $a&a!le t Shri Hada, r rder is endrsed !&

hi( addin# *rds- Ntice ) dishnur nt reuiredM – such

an endrse(ent is called – )acultati,e endrse(ent

. The hlder ) a ne#tia!le instru(ent is hlder in due

curse i) – he recei,es the instru(ent in #d )aith and

*ithut ne#li#enceF he recei,es the instru(ent !e)re

its (aturit& and he recei,es the instru(ent )r la*)ul

cnsideratin

100.The crrect endrse(ent n a cheue !& 6r. Nara&an

6utt is – Nara&an 6utt;6ctr<


E@ER9ISE 8 PART: 0



58/423

0 . %hen the re(issin n sta($ dut& ) a !ill is a,aila!le +

– %hen a !ill re$resents #enuine trade transactin-

*hen the usance $erid ) !ill is nt (re than three

(nths and *hen the !ill is ruted thru#h !an"in#

channel

0. Endrse(ent is a si#nature ) the (a"er r hlder )r the$ur$se ) ne#tiatin

0C. A G,ern(ent $r(issr& nte is a ne#tia!le

instru(ent as $er cust( and usa#es

0. A cheue is dra*n )r Rs. 20000.00 and the $a&ee

endrses Rs. 2000.00 in )a,ur ) 3adhu(ita. 3adhu(ita

can clai( )r( the !an" 8 n a(unt !ecause $arallel

endrse(ent is in,alid

02. An undated cheue is – nt cnsidered in,alid r

cnsidered ,alid

0. The )unctin ) 9entral Prcessin# 5nit – 9P5 is t read-

inter$ret and $rcess the in)r(atin and instructins


59/423

0D. On *hich ne ) the )ll*in# securities- !an"er has a

ri#ht ) #eneral lien – securities re(ainin# in his

$ssessin a)ter the lan *as ad'usted

0. 9erti)icate ) incr$ratin – $r,ides cnclusi,e $r)

that all the )r(alities re#ardin# the )r(atin has !een

)ul)illed !& the $r(ters

0. The )ll*in# )actrs are t !e ea(ined *hile re,ie*in#

the 9ash 9redit Accunts – *hether the !rr*er is

$assin# the entire !usiness t the !an"F *hether

$rescri!ed (ar#ins are !ein# (aintained and *hether

there is an acti,e turn,er !th in the accunt as *ell

as in the stc" ))ered as securit&

0. The )ll*in# state(ents are true in res$ect ) Allied

a#ricultural ad,ances – Interest is t !e char#ed n

c($unded hal) &earl& !asis in Se$te(!er/3arch each

&ear and n $enal interest shuld !e char#ed )r lans

u$t Rs. 12000.00

. 7i#her de!tr turn,er rati (eans – $r!le(s in

cllectin ) de!ts

1. 9ash lss (eans – net lss !e)re char#in#de$reciatin

C. N(inatin )acilit& is a,aila!le n de$sit accunts

$ened !& indi,iduals

. 9rssin# ) cheue dentes that – it shuld !e $aid t

!an"er nl&

2. Ne#tia!le instru(ents act had $er(itted the )ll*in#

– electrnics cheuesF truncated cheuesF di#ital

si#natures and a$$licatin ) In)r(atin Technl#&

Act

. 3/s Pr!le( and c($an& are (aintainin# a current

accunt *ith &ur !ranch. A cheue )r Rs. 2000.00 dra*n

!& the( is $resented thru#h clearin# *hich is dul& $assed


60/423

and de!ited t their accunt. Su!seuentl&- $a&(ent ) the

cheue is cunter(anded !& the dra*er the sa(e da&

!e)re the ti(e ) return ) clearin# cheues. %hat decisin

*ill &u ta"e in this situatin + – The dra*er can st$

$a&(ent !e)re the e$ir& ) ti(e )r returnin# un$aid

cheues as $er clearin# huse rules

D. I) a (inr is ad(itted in a )ir( )r the !ene)its ) a

$artnershi$- the !an" *ill $en the current accunt

. On retire(ent ) a $artner- i) the accunt is in credit

!alance – the )ir( cntinues and the !ranch (ust ensure

that ntices ) retire(ent is !tained nt nl& )r( the

cntinuin# $artners !ut als )r( the retirin# $artners

and then delete the retirin# $artner>s na(e

. %hile $enin# the accunt in the na(e ) the Pu!lic

Li(ited 9($an&- the !an" shuld !tain aln# *ith accunt

$enin# )r( – the (e(randu( and articles )

assciatinF the !ard reslutin t $en the accunt

*ith the !an" and the certi)icate ) incr$ratin

10. A 7indu undi,ided )a(il& cnsists ) all $ersns lineall&

descended )r( a c((n ancestr

1 . %hen curt issues #arnishee rder- the !an" is "n*n as

– #arnishee

11. Ra(an and se$h # t a sh$. Ra(an sa&s t the sh$

"ee$er Let se$hM ha,e the #ds- and i) he des nt $a&-

I *ill $a& – Ra(an is lia!le nl& i) se$h )ails t $a&

1C. Purchase ) $lant and (achiner& – uses ) )unds

. Ban"in# O(!uds(an is a$$inted !& RBI under Ban"in#

Re#ulatin Act

12. The currenc& chest (aintained !& a natinali=ed !an" is

in the ca$acit& ) – $rinci$al and a#ent


61/423

. A and B (aintain a )ied de$sit accunt *ith a lc"er

and *ant t (a"e n(inatin )r !th the accunts –

n(inatin can !e (ade in !th the accunts

1D. Out ) Sen a*ard- 6esai a*ard- Shastri a*ard and

!i$artite settle(ents- Sen a*ard is nt a$$lica!le t

a*ard sta))

1. Accrdin# t Rule 2 ) O))icial Lan#ua#e Rules – re$l& )

7indi letters shuld !e #i,en in 7indi nl&

1. As $er li(itatin act- $erid ) li(itatin )r re$a&

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The Tip of Indian Banking- Part 4

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