BANKING AWARENESS BRIEFLY -- 51 TO 100

.  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

---