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Working group headed by O P Sodhani
NRI Investments
Working group headed by Rashid Jilani
Internal control and systems in banks
Shere committee
Electronic fund transfer
Sodhani committee
Forex markets
I T Vaz
Lending norms for working capital
Working capital to parties by way of cash credit – as supplemental source of finance
J V Shetty
Consortium Lending
Goswami Panel
Industrial sickness and corporate restructuring
Irregularities in financial market
P R Nayak
Small Scale Industries
Money market
S A Dave
Mutual funds
Trading in public sector bonds and units of Mutual funds
Rural lending
Functioning and financial viability of Regional Rural Banks
A C Shah
Financial companies
Review of inspection system in banks
Customer service in banks
Frauds and malpractices in banks
Restructuring the banking system
Syndicated form of lending
P R Khanna
Non Banking Finance Companies – supervision
Capital adequacy ratio
M S Verma
Weak banks
Talwar committee
Weak banks
Mitra Committee
Legal compliance – frauds
Fair Practices Code
Capital account convertibility

2.Banking Awareness Key Points Part 001

01. In the case of a bearer cheque,   the identity is not necessary
02.  When an order cheque is endorsed in blank,  it becomes payable to bearer and transferable by mere delivery
03.  A cheque crossed “Not Negotiable”,  is still transferable
04.  As per section 138 of Negotiable Instruments Act, there is a provision of penalty when the cheque  issued in discharge of a liability  is dishonoured due to insufficient funds in the account and if the cheque has been presented to the bank within a period of three months and is not honoured due to insufficient funds
05. A fixed deposit receipt cannot be endorsed
06.  A cheque is presented in an account but there is no sufficient balance to meet the same. The cheque will be returned with the remarks – insufficient funds
07.  The cheque on behalf of a partnership firm can be stopped for payment by any partner whether authorized to operate the account or not
08.  The marginal farmer is one who possesses agriculture land upto 1.25 acres of irrigated land or 2.5 acres of non-irrigated land
09.  Registration of charge is not required in the case of pledge, lien, set-ff and appropriation
10.  Loans for construction of godown for own use of farmers is not part of indirect finance to agriculture
11.  Olericulture is cultivation of vegetables
12.  Agriculture labourer is a labourer whose income from agriculture is more than 50%
13.  Nostro account is an account of a bank established in India with a Foreign Bank in another country and the account is maintained in foreign currency
14. Resident Foreign Currency (RFC) account scheme is available for home returned Non resident Indians
15.  Under packing credit limit, the extent of finance is computed on the basis of Freight on Board basis
16.  Forfaiting refers to discounting of export bill without recourse to the seller
17.  In an overdraft account, when the death notice of partner is received the bank should stop the operations to avoid application of Clayton’s case
18.  A company is not dissolved by lunacy of a director or bankruptcy of a director or death of a director
19.  In the case of insolvency, the banker’s obligation to honour customer cheques comes to an end when the customer is adjudged insolvent
20.  A lien is the right to retain goods or securities belonging to a debtor until he has discharged a debt due to the retainer thereof
21.  The shareholders of a Private Limited Co cannot transfer the shares to any other individual other than the shareholders of the company
22.  The rule in Clayton’s case applies in the case of running accounts having debit balances in respect of partnership accounts
23.  The term banking has been defined by Banking Regulation act – 1949
24.  Bills drawn in respect of goods delivered by parties to various Government/Semi Government departments are known as supply bills
25.  Goiporia committee has made the recommendations – Commencement of employee working hours should be 15 minutes before commencement of business hours
26.  Banking companies are registered under – Banking Regulation act - 1949
27.  Bipartite settlements are registered under Industrial Disputes Act
28.  Financial products, whose prices are derived from the price of the underlying currency, interest rate, stocks etc are called as– securitization
29.  Revaluation reserves is a part of subsidiary capital/tier II capital
30.  The committee headed by Y V  Reddy –revised the concept of liquidity and monetary aggregates
31. Verma Committee  was appointed to examine the restructuring of weak banks
32. The process through which any member-owned organization becomes a shareholder-owned company is called demutualization
33.  Official Language deals with the following articles of constitution – 343 to 351
34.  Hindi was declared as the official language of the union on 14-09-1949
35.  The system of electronic funds transfer was suggested by the committee headed by – B D Shah
36.  INFINET  is – RBI’s VSAT based communication system
37.  The negotiable instruments act is applicable in the entire part of the country
38.  If the cheque is drawn in favour of “Mother God” or order, the cheque is to be returned with the reasons – “since drawn on fictitious name”
39.  A cheque payable to Rohit is endorsed as follows – Pay to “Kabil on his marriage”. This endorsement is conditional endorsement
40. The cheque crossed – “account payee” drawn in favour of MrBrijNand is presented by Raman in his account and in this case the bank should not make the payment
41.  The following are not negotiable instruments – airway bill, a currency note, a letter of credit and lorry receipt
42.  Under section 25 of Negotiable Instruments Act, public holidays are declared by – the respective state governments by notifications in the official gazettes
43.  Conversion means – not crediting the amount in the account of true owner
44.  By “General Crossing”,  we mean two transverse parallel lines on top left hand corner of a cheque
45.  Forward exchange contract is an agreement where the foreign exchange is delivered at predetermined future date at a contracted date
46.  Unless otherwise specified in the letter of credit, the insurance amount should be expressed in the currency of the letter of credit
47.  On the death of the partner, bank opens a new account to rule-of the existing account to avoid application of Clayton’s case
48.  Executor in banking means a person named by the deceased in his will and for which probate is obtained
49.  The partnership firm doing the banking business cannot have more than 10 partners and for other business not more than 20 partners;  otherwise it will become illegal association. It is provided in Companies act
50. Prospectus is an invitation to the public to subscribe shares or debentures or deposits
51.  According to the rule in Clayton’s case, the money paid in by a customer are to be applied towards adjustment in overdraft account in order of time in which the debits were incurred
52.  Banking company is prohibited for undertaking business like trading of goods etc under – Banking Regulation act 1949
53.  For availing remedy under section 138 of Negotiable Instruments act, the holder will have to give notice to the drawer within 30 days of return of the cheque
54.  When a firm has branches at different places and wishes to avail the loan at all stations, the documents will be executed at its Head Office and sub limits will be allocated to branches at different places
55.  In the case of any doubt about stamp duty, clarification can be sought from State Stamp Authority and Controller of stamp duty
56.  Banks were nationalized under – Banking Companies (Acquisition and transfer of undertaking) act-1970
57.  When an account shows debit balance, the banker is a creditor and when the account shows credit balance, the banker is the debtor
58.  Partnership firms cannot do the business of banking and it is provided under the banking regulation act 1949
59.  The concept of authorized deduction and illegal deduction is mentioned in the act – Payment of wages act
60.  The process of replacing paper securities into electronic holding of shares is known as – dematerialization
61.  Official Language policy came into force from 16.01.1950
62.  The Central Processing Unit – CPU- consists of control unit and arithmetic logic unit
63.  When the price of  dollar is raised from Rs. 48 to Rs. 55 the exporter will be benefited in terms of rupee
64.  A cheque is the mandate of the accountholder
65.  When a cheque without a date is presented for payment, the banker should return the cheque
66.  In a cheque the name of the banker had been written with or without the words – “Not negotiable” – In this case, it is called as a special crossing
67.  For negotiating a negotiable instrument there are no limits
68.  A bearer cheque is transferable only by delivery
69.  A bill drawn in Paris and drawn in favour of a trader in Mumbai and payable in Chennai is called a foreign bill
70.  The Negotiable Instruments Act provides protection to the collecting banker in respect of Conversion
71.  Crossing of a cheque denotes that it should be paid to a banker only
72.  By noting,  it is meant that the fact of dishonour has been recorded by the notary public on a dishonoured bill or/and on a plain paper attached to the bill
73.  Sericulture is classified under – direct agriculture advance
74.  Mahima relates to refinance by NABARD to banks for onlending  to agencies for marketing of non farm products of rural women
75.  Foreign exchange transactions are viewed always from the angle of the bank
76.  The responsibility of managing the foreign exchange resources lies with – Reserve Bank of India
77.  Exim policy is announced by the Ministry of Commerce
78. In a Free on Board contract, freight and insurance will be borne by the importer
79. If a letter of credit is slient about the revocability, then the letter of credit is irrevocable
80.  Crystalisation of sight export bills purchased/negotiated will be done on the expiry of transit period plus 30 days
81.  A transferable letter of credit can be transferred only once
82.  Natural guardian under Hindu Minority and guardianship act, 1956 will be – his father and after him the mother
83.  For banking transactions, an administrator is one who is appointed by the court if the deceased has died intestate
84.  Banker’s lien is an implied pledge
85.  A contract of insurance is a contract of indemnity
86.  Acceptance of a usance bill will be made on the face of the bill
87.  The right of set-off can be exercised by the banker only when the relationship between the customer and the banker is that of debtor and creditor
88.  Bank must create reserve fund and 25% of the profits should be transferred to this fund before any dividend is declared  and this is as per Banking Regulation act 1949
89. Limitation period for availing the remedy under Section 138 of Negotiable Instruments Act is one month from the date of cause of action
90.  In case the amount of loan to a company is decreased or increased, the memorandum of modification or charge should be  submitted to the Registrar of companies
91.  The rate of revenue stamp is the same throughout India except in Jammu and Kashmir
92.  When articles are kept in safe custody, the relationship between banker and customer is that of  bailee and bailor
93.  In the case of minor’s joint account with the guardian and when the minor attains majority, the guardian should not be allowed to operate the account
94.  Wages of employees are settled under Minimum wages act
95.  CB Bhave committee has looked into ways to reduce cost of demat operations and the said companies should bear a substantial part of dematerialization costs
96.  Basle committee relates to Capital Adequacy
97.  In Camel’s rating – E stands for earnings
98.  The revised definition of a sick SSI unit has been given by Kohli committee
99.  Greenshoe option is retaining the full/part of equity subscribed by investing public over and above that issued
100.Hindi is accepted as an official language of the union under Devanagiri script

3.Banking Awareness - Key Points - Part: 003

01.  Appeal against the decision of Debt Recovery Tribunal can be made before the Chairperson of DRAT within a period of 45 days
02.  If a document duly stamped in Delhi travels to Jammu and Kashmir state, additional stamps equivalent to full stamp duty of Jammu and Kashmir state are required to be affixed
03.  In case a borrower signs in a vernacular language, a banker must obtain a duly witnessed certificate  that the contents have been read out and explained to the borrower in vernacular language and the borrower had understood the same
04.  One rupee notes are issued by Government of India
05.  Borrowing powers of a company are mentioned in the articles of association
06.  A certificate of deposit is issued by a bank at a discount to face value
07.  FIMMDAI means Fixed Income Money Market and Derivative Association of India
08.  Chairman and Managing Directors of nationalized banks are appointed by Central Government
09.  Hardware refers to – any part of computer that is physically visible
10.  Special Purpose Vehicle mechanism is suggested for divestment of Government’s stake in Public Sector Unit
11.  Debt Service Coverage Ratio shows the number of times the company’s surplus generation covers the payment of interest and repayment of principal of long debt
12.  The high level committee set up by the finance ministry to review the system of administered interest rates in the country – Y V Reddy Committee
13.  Under the Corporate Debt Restructuring called as CDR, the floor limit of aggregate exposure is Rs. 20 crore
14.  In the case of securitization, the number of loans are put together and then distributed among small investors
15.  A NRE depositor has issued a power of attorney in favour of his wife – a resident. She can withdraw cash, issue cheques-crossed for local payments and deposit into the account a foreign DD favouring the deposit, however, she cannot deposit foreign currency notes/foreign traveler cheques
16.  The maximum period allowed for FCNR deposits is-  three years
17.  Foreign citizen of Indian origin is a  Non Resident Indian – NRI
18.  Tier II capital should not exceed 100% of Tier I capital
19.  A letter of credit in which the terms and conditions cannot be amended without the agreement of opening bank, applicant and the beneficiary is called – Irrevocable letter of credit
20.  Bill of lading is a document signed by the captain of the ship- acknowledging of receipt of goods on boarding the vessel for shipment
21.  Trade Related Intellectual Property Rights (TRIPS) and Trade Related Investment Measures (TRIMPS) are associated with – Dunkal Proposal
22.  The import licences are issued by DGFT called as Director General of Foreign Trade
23.  Montreal Protocol relates to Protection of ozone layer
24.  The term “ holder” – refers to the person who is in possession of the instrument legally and entitled to possess the instrument in his own name and recover the amount thereunder
25.  An executor of a will has expressed his inability to accept the responsibility. On reference to the Court, a person is appointed to look after the affairs and the person is called Administrator
26.  Recovery certificate issued by the president of Debt Recovery Tribunal is routed through Recovery Officer
27.  If the bank fails to register the hypothecation charge on the Current assets of a company within 60 days of creation of the charge, the matter has to be referred to – Company Law Board
28.  A guarantee was issued on behalf of Rohit by exercising a lien on the Fixed Deposit Receipt of Rohit. Bank is informed about the death of Rohit. A garnishee order is received attaching the deposit of Rohit. The bank will attach subject to bank’s right of set off against any debts owed by Rohit
29.  A loan has been granted to Rahul against the security of his Fixed Deposit Receipt – FDR, with the branch. Subsequently, a Court attachment order is received on the deposit. The branch  after adjusting the dues/outstanding towards the bank has  to pay the balance amount to the court
30.  Registration of charge is not necessary when the company has been granted loan facility against the security of fixed deposit
31.  The bank receives garnishee order. The relationship between the banker and the customer in this case is debtor /creditor
32.  The bank due to oversight pays a forged cheque and the bank is liable to the drawer of the cheque
33.  The bank while disbursing the loan did not stamp the promissory note for the appropriate value. The options for the bank is that unstamped/understamped promissory note cannot be rectified
34.  A minor aged 15 years comes to your branch for payment of a cheque for Rs. 27000/-. The signature of the drawer tallies  with your record. As a desk officer, can you make the payment ? – Yes, the minor cannot be denied  taking payment
35.  As per the amendment of the Negotiable Amendment Act in December, 2002, the time period available to the holder of a cheque to give notice of dishonour to the drawer is 30 days
36.  As per the Negotiable Instruments Act, the notice period by the holder to the drawer under Section 138 is 15 days
37.  Kelkar Committee has suggested that tax incentives for housing loans be withdrawn as part of the overall revamp of tax policy
38.  In the case of a garnishee order, where the partner of a firm is a judgment debtor, only his personal account can be attached and not the firm’s account.
39.  The following statements are true in connection with the right of set-off with regard to bank – It is the bank’s discretion to exercise right to set-off and the whole bank constitutes one entity and it is applicable when the banker- customer relationship is that of debtor-creditor
40.  When a bill is drawn in a set of three and the third is presented for payment – it can be paid
41.  The provision requirement for substandard assets – 10% of net book value
42.  Claused bill of lading is one which narrates the effective condition of the merchandise or  packing or both
43.  Non resident Indian  can maintain – Non Resident External Account, Non Resident Ordinary deposit account, FCNR account and Non Resident fixed deposit account
44.  Composite cash credit system with liquidity for agriculture has been introduced on the recommendations of R V Gupta Committee 
45.  Rohit Mehta (apparent age-14) presents a cheque drawn by his father Amit Mehta for payment – it can be paid  as the minor is not made liable in this transaction
46.  Certificate of noting issued by Notary Public is known as Protest
47.  Break-even-Point is a point where the total costs equal to total revenues
48.  A police inspector informs you that Thomas is facing a charge of cheating and is involved in illegal export of persons abroad. He produces a letter signed by the station-in-charge demanding that details of the account of Thomas facing charge of cheating be disclosed. How will you handle the situation ? – As the inspector has produced an authorization letter we will allow him to inspect the books
49.  If debt service coverage ratio is 2, it means – loan repayment can be easily made by the borrower
50.  A minor attains majority on completion of 18 years
51.  “Bank does not recognize trusts” – it means that in the absence of any specific information,  deposit accounts will be presumed to be the property of the accountholder
52.  Financial assistance for the activity, which is not considered indirect finance to agriculture is – Agro clinics
53.  Executor is a  person named in the “Will” to manage the properties of the deceased
54.  Holder does not get protection, if endorsement is forged
55.  If on any cheque, bearer or order has not been written then it will be treated as – an order cheque
56.  Mumtaz endorsed a cheque in favour of Dara Singh with the condition – “Pay to after death of Rohan Kapur”, but received the payment without fulfilling the condition. In this case from whom can Mumtaz recover the amount – From Dara Singh
57.  Abhinav is the holder of a cheque who endorses sans recourse to Thomas and Thomas to Raman  and Raman  to Divya who endorses it to Selvi.  The cheque is dishonoured – Selvi  can claim the amount from Thomas, Raman and Divya
58.  Account Payee crossing is addressed to the collecting banker
59.  Minor wants to overdraw in his account and you will not grant it because the contract with a minor is void abinitio (the contract is not valid)
60.  The maximum number of members in a Private Limited Company, should not exceed – 50 as per Indian Companies Act 1956
61.  A Hindu Undivided Family is managed by – the karta
62.  Garnishee order attaches – balances available at the time of serving the order to bank
63.  Consideration for a contract of guarantee shall be Consideration received by the debtor
64.  A company has been sanctioned overdraft limit of Rs. 150000.00 against pledge of shares and in this case,  registration of charge is not necessary
65.  Simple mortgage is one which undertakes a personal obligation to pay the mortgage debt and passing the right of sale of the said property through court
66.  In an ongoing situation, the right of set-off can be exercised by a banker – by serving a reasonable notice on the customer
67.  Ombudsman scheme is framed under  Section 35 A of banking regulation act
68.  In case a borrower signs the documents with the left hand – a separate note stating that the documents signed with left hand is kept with the documents
69.  Joint and several demand promissory note should not be obtained in the  case of advance to – a limited company
70.  In the case of bank documents the following category of stamps are affixed – non judicial
71.  An export bill for US $ 10000 drawn under letter of credit is negotiated by your bank and is submitted to the LC issuing bank for reimbursement  and you are informed that the documents negotiated by your branch are forged.  Negotiating bank is not liable as the bank is not liable for genuineness of the documents
72.  Original demand draft is reported lost by the payee and in the meanwhile the draft is presented in the clearing – draft will be returned with the reason ‘Reported lost by payee and  drawer’s instructions awaited”
73.  Official Language (OL) rules 1976 is not applicable to the state of Tamilnadu
74.  If a person dies intestate, the court will issue the following documents – letter of administration
75.  Import licenses are issued for CIF value
76.  Documents requiring stamping in terms of Indian Stamp act should be stamped before execution or at the time of execution
77.  Kisan Credit card system has been introduced with effect from August 19, 1999 to take care of credit needs of the agriculture on the recommendations of R V Gupta Committee
78.  The domestic inquiry relating to misconduct of an employee is governed by Industrial Disputes Act
79.  Meaning of term – liquid surplus – in relation to the interpretation of the balance sheet – it represents excess of current assets over current liability
80.  For disposing of the balances of the deceased customer dying without will or nomination -  letter of administration is required
81.  Guarantees, confirmation of letter of credits issued by foreign banks, performance bonds, bid bonds, warranties are non fund exposures
82.  Clean bill of lading  - which bears no super imposed clause or notation which expressly declares the defective condition of the goods and or packaging
83.  Free carrier allowance means – seller fulfils his obligation to deliver the goods when he has handed over the goods meant for export into the charge of the carrier named by the buyer
84.  Foreign Currency, which has a tendency of quick migration is called as– hot currency
85.  Current Ratio – denotes the liquidity of the firm
86.  RBI has allowed authorized dealer the authority of opening of temporary foreign currency accounts for organizers of international seminars, conferences, conventions etc, who have already obtained the prior approval of the concerned administrative machinery of the government
87.  The exchange rate to be applied for effecting remittance of an import bill is – bill selling rate or forward sale contract if already booked
88.  The negotiating bank has negotiated the documents under letter of credit and made payment to the beneficiary. The issuing bank refuses reimbursement to the negotiating bank saying that the documents are forged – in this case negotiating bank is not liable, since the bank has acted in good faith and the documents are apparently in order
89.  In India, trade Control comes under the direct control of Ministry of Commerce
90.  In INCOTERMS, the term FAS represents – Free alongside the ship
91.  UCDPC is prescribed by ICC, Paris
92.  The first committee on mechanization and computerization in banking was headed by Dr. C. Rengarajan
93.  “The committee on Institutional Credit to SSI Sector and related aspects”  (Annual Projected Turnover Method) was headed by – P R Nayak
94.  The bill is drawn in Mumbai and is acceptable/payable in New York and the drawee is at  New York and the bill is inland bill
95.  In Camels rating – “C” stands for Credit worthiness
96.  Asset Reconstruction Company has been set up by the Government to recover the non performing assets – NPAs of weak banks
97.  Under “Narrow Banking” concept, the financial institutions  invest only in Government securities and not undertake loans and advances
98.  Margin of safety means – excess of total sales over break-even point in terms of sales
99.  Advance for pisciculture is granted under “agriculture” segment.
100.          Noting and protesting is not applicable to foreign bill – noting and protesting is applicable to promissory notes, bills of exchanges and cheques

4.Banking Awareness Key Points Part 002

01.  The administrative heads of the departments are responsible for compliance of Official Language Policy of Government of India
02.  MS word is an application software
03.  The locker holder is sick and as such he gives an authority in favor of the minor son to operate the locker and in this case, the bank can allow the minor to operate  the locker
04.  A is a minor and he endorses a cheque in favour of B. In the case of dishonour,  A - cannot be held liable as when a minor endorses a cheque all parties are liable except the minor
05.  You come across a cheque on which neither the words “bearer” nor “order” are written. You will make the payment of this cheque by treating it as an order cheque
06.  Debt Service Coverage Ratio denotes solvency position of the firm
07.  Shroff committee had recommended that companies entering into merger and acquisition transactions, making preferential allotment of shares to related parties and proposing buyback of shares must appoint registered valuer for independent valuation of shares and assets
08.  Debt equity ratio denotes the solvency position of the firm
09.  The accountholder is the drawer of the cheque and in the case of draft, the issuing branch is the drawer
10.  Not negotiable crossing means that the holder in due course will not get the better title
11.  Account opening form is a very important document because it forms the basis of contract between the bank and the customer and it contains the offer of the customer to enter into a contract with the bank
12.  The following are not abound on a negotiable instrument as drawer, acceptor or endorser –a lunatic, an alien enemy and an insolvent
13.  An order cheque is transferable only by endorsement and delivery
14.  The term – “allonge” refers to a plain sheet appended to a negotiable  instrument for the purpose of making endorsement thereon
15.  The following endorsements are invalid – endorsement after maturity of the instrument, partial endorsement, endorsement on a discharged instrument and endorsement in the case of negotiation
16.  “Account Payee” crossing is not mentioned in the Negotiable Instruments Act – 1881
17.  The “protest” is the formal notarial certificate attesting the dishonour of the bill and based upon the noting.
18.  Service Area Approach is a result of recommendation of committees headed by P D Ojha
19.  A person who owns unirrigated land of 3 acres will be classified as a marginal farmer
20.  A foreign traveller encashes travelers’ cheques for $1000 at Rs. 47.25. It is a purchase transaction
21.  A restricted letter of credit is one in which the negotiation is restricted to a specific bank
22.  Red Clause letter of credit is one which authorizes release of preshipment finance to the beneficiary
23.  Limited  company means – limited liability clause in memorandum of association.
24.  Garnishee Order is issued under Rule 46 of Order XXI of the schedule to the code of Civil Procedure  - 1908
25.  A contract of guarantee is defined as – a contract to perform or discharge the liability of the principal debtor in the case of his default
26.  To be a valid acceptance,  thedrawee shall affix his signature with or without the words – ‘Accepted”
27.  A Government Company means 51% of the paid up share capital is held by State Government and/or Central Government
28.  If the registrar of DRT refuses to file the suit due to discrepancies in copybook,  the  bank can file the appeal before presiding officer of DRT within 15 days
29.  Lokadalats are constituted under Legal Services Authorities act
30.  Stamp duty earned by the government on demand promissory note goes to the state government
31.  When the bill becomes due for payment – it is the starting point of limitation on a bill of exchange payable at a fixed time after date
32.  Cash Reserve Ratio is maintained by the banks by keeping cash balance with Reserve Bank of India
33.  Nomination facility can be allowed in the following cases – deposit accounts of individuals, articles kept in safe custody and safe deposit lockers
34.  A certificate of deposit is an usance promissory note
35.  Subordinated debt is an element of tier II capital
36.  Accumulated loss will be deducted from tier I capital
37.  Vaghul Committee had recommended the introduction of Certificate of Deposits
38.  The basic nature of a commercial Paper is – it is usance promissory note
39.  “A pass through certificate” called as  PTC can be of the following nature in securitization transactions – with recourse and without recourse
40.  Global depository receipt is listed on Stock Exchange outside USA
41.  Current Ratio denotes liquidity
42.  Simultaneous sale and purchase of a share to take advantage of the variation in prices  in two different markets is called as– Arbitrage
43.  Current Ratio denotes – liquidity
44.  Debt Recovery Tribunals have been created by the Government as a result of the recommendations of Narasimhan Committee
45.  When a bill matures on a public holiday, the maturity date of the bill falls on the next preceding business day
46.  A negotiable  instrument can always be negotiated until it has been paid up or satisfied
47.  In the case of dishonour of a foreign bill, the protest is compulsory when it is required by the law of the place where it is drawn
48.  An engineer is financed for the purchase of a car and the same can be classified as Non priority sector
49.  Under drip irrigation system water is used very economically and supplied drop by drop to the roof zone of crop
50.  “Yellow Revolution” is in connection with growing of fruits especially banana
51.  The economic life of a tractor is  - 10 years
52.  The natural guardian of a married minor girl is her husband
53.  The minimum number of share holders in a Private Limited Company – two members
54.  To open an “Administrator account” the bank requires letter of administration
55.  Karta has the absolute authority to appoint any person as an agent and the agent need not to be a family member
56.  Garnishee Order  is the court order obtained by the judgment creditor attaching funds with Bank of judgment debtor
57.  Indemnity means to make good the loss to the promise/indemnity holder
58.  A bearer who takes a bearer cheque bonafide and for value will be a holder in due course
59.  Mortgage is defined in – Section 58 of transfer of property act – 1882
60.  A banker can exercise the right of set-off only in respect of debts due and determined
61.  Banks are restricted to advance against its own shares – as per Banking Regulation Act 1949
62.  The recovery of dues after issuance of recovery certificate by Presiding Officer of DRT can be made through – Recovery Officer of DRT
63.  The roles of LokAdalat – to arrive at compromise or settlement; issue final judgment and to give the consented decree
64.  The remedy under Section 138 of Negotiable Instruments Act  is available – when the cheque is presented to paying banker within a period of three months or within the period of its validity whichever is earlier
65.  In case a document travels from higher stamp area to lower stamp area, additional stamps are not required to be affixed
66.  The purpose of maintaining a “documents execution register” is that it is a prima facie evidence of execution of documents
67.  One rupee note bears the signature of the Secretary, Ministry of Finance
68.  Nomination facility is not allowed in the case of joint safe custody accounts
69.  Free capital is a part of tier I capital
70.  Kumar Mangalam Birla is the architect of SEBI’s Corporate Governance Code
71.  Malhotra Committee had suggested to establish an “Insurance Regulatory Authority”
72.  The minimum denomination for a Commercial Paper is Rs.5.00 lakhs
73.  The maximum period for which a certificate of deposit can be issued – not more than 12 months
74.  Capitalisation of reserves leads to issue of bonus shares
75.  1,2,3,4,5,6,7,8,9 – numerals are called as - International form of Indian numerical
76.  Key-board is an input device
77.  MS - DOS is a system software
78.  Dear money policy is meant to control inflation
79.  An illiterate borrower cannot sign acknowledgment of debt but affixes his thumb impression on it. The limitation period will be extended by this action
80.  Section 45 Z of Banking Regulation Act 1949 relates to handing over of original paid cheques to the corporate customer
81.  As per the Prompt Corrective Action scheme, RBI can initiate certain structured actions in respect of the banks which have hit the trigger points in terms of CRAR, Non performing advances and Return on advances
82.  Under Know Your Customer guidelines, the identification and reporting of suspicious transactions are to be done on quarterly basis to Audit Committee of the board of directors
83.  To prevent slippage of accounts to NPA category, RBI has designed broad framework detailing preventive and corrective measures. One of the measures is the introduction of new asset category between “standard” and “sub standard”. This new category is called special mention accounts
84.  While opening accounts of Executors and Trustees to the estate of a deceased person, bank should scrutinize the trust deed, order of charity commissioner and probate
85.  Stamp duty on which of the following documents does not vary from state to state – mortgage agreements, hypothecation agreements, guarantee agreements and bills of exchange.
86.  If no time for payment is specified in a promissory note or bill of exchange, such an instrument is considered as – instrument payable on demand
87.  Acceptance is not required in the case of promissory note and demand bill of exchange
88.  To open an executor account the bank should insist on probate
89.  The following do not fall within the implied powers of a partner under section 19(2) of the Partnership act, 1932 – opening a banking account on behalf of the firm in his own name, compromising or relinquishing any claim or portion of a claim by the firm and withdrawing suit or proceedings filed on behalf of the firm
90.  In a balance sheet, profit is shown under liabilities side
91.  The term – preshipment advances is used to describe advances granted to exporters for the purpose of manufacturing, processing, packaging etc. or simply procuring goods meant for export
92.  In an account of a minor operated by the guardian, after the death of the guardian, the balance cannot be paid to the minor even though he has completed the age of 10 years
93.  On the death of a partner, the firm having credit balance stands dissolved and to wind up the affairs of the firm the surviving partners are allowed to jointly operate the account and if it decides to continue after registering the Municipal Death certificate recording fresh mandate for operation, the existing account can be continued and operation allowed
94.  Opening a banking account on behalf of the firm in his own name, compromising or relinquishing any claim or portion of the claim by the firm, withdrawing suit or processing filed on behalf of the firm do not fall within the implied powers of a partner under Section 19(2) of the Partnership act – 1932.
95.  Garnishee order attaches debts due or accruing due. This means deposits payable on demand and payable at a future date
96.  Parties to a guarantee are principal debtor, surety and creditor
97.  A cheque may be crossed by drawer or holder
98.  The purpose of mortgage is to possess the ownership of other’s property
99.  A banker can set-off the amount held in the time deposit account of a customer against the debit balance of the same customer in overdraft account only after maturity of the fixed deposit
100.          Civil Procedure code provides the provision exemption for arrest in execution of a decree for money under Section 56




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