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LATEST DEVELOPMENT QNS 51-72


51.           In special crossing which of the following is important:          
a) parallel lines across face of a cheque               b) words within parallel lines
c) name of a bank only within parallel lines                      
d) name of bank within our without parallel lines
52.        Which of the following can be crossed (1) cheque (2) demand draft (3) bill of exchange (4) promissory note
            a) 1 to 4 all        b) 1 to 3 only     c) 1 and 2 only               d) 1 and 4 only
53.        When a cheque has 2 special crossing (1) it can be paid if the crossing are in favour of 2 branches of the same bank (2) it can be paid if the crossing are in favour of 2 different banks (3) it can be paid, if the crossing are in favour of 2 different banks and one of these banks is agent and other is principal:
            a) only 1 is correct         b) only 1 and 2 are correct          c) only 1and 3 are correct
            d) only 2 and 3 are correct
54.        If a crossed cheque is presented to the paying bank for cash payment, it can be paid to which of the following:
            a) payee                        b) payee or his order      c) payee’s bank                        
d) cash payment cannot be made to any one.
55.        Which of the features of a ‘payees account crossing’ on a cheque is correctly stated (1) such cheque be endorsed any no. of times (2) such cheque cannot be endorsed (3) payment of such cheque can be obtained by payee through his account only (4) such crossing is not defined (5) payee of such cheque is deemed to be holder in due course.
            a) 1, 3, 4, 5 all   b) 2 to 5 all        c) 3 and 4 only               d) 1 and 5 only
56.        Which of the features of a ‘non-negotiable crossing’ on a cheque is correctly stated (1) such cheque be endorsed any no. of times (2) such cheque cannot be endorsed (3) payment of such cheque can be obtained by payee through his account only (4) such crossing is defined as per Section 130 of NI Act (5) payee of such cheque is deemed to be holder in due course.
            a) 1, 3 and only              b) 1, 3 to 5 only                         c) 2, 3 and 5 only          
            d) 2 and 5 only
57.        Which of the following can validly cancel the crossing of a cheque to make it an uncrossed cheque:
            a) drawer with his initials                        
b) One of the joint account holders in a jointly operated account
c) managing director of a company                      d) none of the above
58.        RBI, u/s 35A of Banking Regulation Act prohibited the banks from crediting ‘account payee’ cheque to the account of any person other than the payee named therein. Where the drawer/payee instructs the bank to credit the proceeds of collection to any account other than that of the payee, the bank should:
            a) ask the payee to have the cheque or the account payee mandate thereon withdrawn by the payee.
            b) ask the drawer to have the cheque or the account payee mandate thereon withdrawn by the payee.
            c) ask the drawer/payee to have the cheque or the account payee mandate thereon withdrawn by the drawer.
            d) credit the cheque as desired by the payee/drawer.
59.        As per RBI, a collecting bank may consider collecting account payee cheque drawn for an amount not exceeding __ for the account of their customers who are co-operative credit societies, if the payees of such cheques are the constituents of such co-operative credit societies.
            a) Rs.1000        b) Rs.10000       c) Rs.25000       d) Rs.50000
60.        Provisions of payment in due course are available as per Section ___ of NI Act:
            a) Section 10                 b) Section 31                 c) Section 85                
            d) Section 89
61.        The provisions regarding protection to paying bank are not matched, in which of the following:
            a) Payment of an endorsed cheque Section 85(1) NI Act.
            b) Payment of a materially altered cheque - Section 89 of NI Act
            c) Payment of crossed cheque - Section 128 of NI Act.
            d) none of the above
62.        Banks have obligation to make payment of cheques issued by their customers, u/s ____ of NI Act, if certain conditions are satisfied by the customer:
            a) Section 10     b) Section 31                 c) Section 85                 d) Section 89
63.        X issued a cheque of Rs.10000 in favour of Y.Balance in the account was Rs.9500. Y enquired the existing balance in the account from the bank staff and deposited Rs.600 to get the cheque encashed. X claimed the amount from bank stating bank has negiligently disclosed the account information:
            a) bank has made no mistake in paying the cheque as the balance at the time of payment was sufficient in the account.
            b) bank staff has acted negligently by disclosing the balance in customer’s account. Hence bank liable.
            c) bank is not liable as any person can deposit the amount in a deposit account.
            d) bank should advice the customer to sort the issue with the payee.
64.        X issued a cheque and crossed it by writing the words ‘Mumbai’ within 2 parallel lines. The cheque is presented in Delhi for payment through account of Y, the payee.
            a) cheque shall be paid as the words ‘Mumbai’ do not restrict the payment at any other place.
            b) cheque cannot be paid in Delhi as the drawer has given specific instruction to pay in Mumbai.
            c) cheque cannot be paid as drawer’s instruction is not clear
            d) cheque can be paid only if the payee is a creditworthy person, so that later on, in case of need, the payment could be recovered from him.
65.        X issued a cheque in favour of life Insurance Corporation of India for Rs.12456 being annual premium payment. The balance in the account is Rs.10209. Bank made the payment by creating overdraft without any request from X, considering that X has been maintaining the account for a log period and that it was an important payment. When the notice is sent to X to pay the balance in overdraft along with interest, he thanks the bank for payment of cheque but refuses to pay as he never gave his consent to create the overdraft.
            a) bank created overdraft on its own due which it has no right to demand the money from customer.
            b) bank has acted negligently by making the payment without sufficient balance
            c) bank can recover the amount along with interest, since customer has accepted the payment of cheque by thanking bank for the payment.
            d) bank can recover the amount of overdraft because that money becomes payable to bank on demand.
66.        In the saving bank of X, 2 cheques of Rs.3000 each, both dated January 25, are presented within validity period. One is payable to electricity department and the other to Mr.Z.Balance in the account is Rs.4500.
            a) total amount of both the cheques is more than balance in the account. Hence bank shall return both the cheques considering one demand.
            b) since both the cheques bear the same date, bank can pay any one of these and return the other.
            c) Cheque in favour of electricity department shall be paid the other one returned.
            d) cheque in favour of Z shall be paid and the other one shall be returned.
67.        2 cheques are presented in the current account of Mr. X. One of these is presented by the payee Mr.Z for Rs.500 at 5 mines past 3 pm and other is presented by Mr.X himself for Rs.15000 at 20 minutes pas 3 pm. Bank business hours are between 10 am to 3 pm. Which of the following options is more appropriate in this context.
a) bank shall return both the cheques as payment after business hours is not a payment in due course.
b) bank shall make the payment to payee being a small amount but refuse to pay to drawer as amount is little large.
c) bank cannot make payment to payee. Payment can be made to drawer at discretion of the bank.
d) if bank makes payment to any one and subsequently if garnishee order or attachment order is received, bank shall be liable.
68.        Bank can make payment of a cheque in which of the following circumstances (1) stop payment by the payee (2) completion of the date of cheque by the payee (3) payment of bearer cheque demanded by a person other than the person whose name is written as payee of the cheque.
            a) 1 to 3 all                    b) 2 and 3 only               c) 1 and 3 only  
            d) 1 and 2 only
69.        Bank should not make payment of a cheque in which of the following situations (1) stop payment by the drawer (2) death of mandate holder in the account although cheque has been signed by the customer himself (3) post dated cheque (4) stale cheque:
            a) 1 to 4 all        b) 2 to 4 only     c) 1, 2 and 4 only           d) 1, 3 and 4 only
70.        X gave mandate in favour of Z to sign cheques. Z signed 3 cheques dated as Mar 03, May 19 and May 31. These are presented for payment on June 03. Bank has notice about death of Z took place on May 21. How bank should proceed?
            a) all the cheques will be paid     b) all the cheques will be returned
            c) cheque dated Mar 03 and May 19 shall be paid and dated May 31 shall be returned.
            d) cheque dated May 19 only shall be paid and other cheques will be returned.
71.        X gave mandate in favour of Z to sign cheques. X signed 3 cheques dated as Mar 03, May 19 and May 31. These are presented for payment on June 03. Bank has notice about death of X on May 21. What will be decision of the bank in payment of these cheques.
            a) all the cheques will be paid     b) all the cheques will be returned.
            c) cheque dated Mar 03 and May 19 shall be paid and dated May 31 shall be returned.
            d) cheque dated May 19 only shall be paid and other cheques will be returned.
72.        Countermanding the payment of a cheque by drawer means which of the following?
            a) Crossing of the cheque                       b) stop payment of the cheque   
            c) confirmation of alteration in the cheque             d) cancellation of crossing of the cheque

ANSWERS


51.d     52.c     53.c     54.c     55.b     56.a     57.d     58.c     59.d     60.a

61.d     62.b     63.b     64.a     65.c     66.c     67.c     68.a     69.d     70.d

71.b     72.b
LATEST DEVELOPMENT QNS 51-72 Reviewed by sambasivan srinivasan on 7:59:00 AM Rating: 5

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