banking ombdsman act in india question answer.ppt

banking ombdsman act in india question answer.ppt

1. INDIAN INSTITUTE OF
BANKING & FINANCE
JAIIB
MODULE (A & B)
LEGAL ASPECTS OF BANKING
OPERATIONS
Thursday 17
APRIL 08
T M C VASUDEVAN

2. 01..Identify which one is treated as the
secondary business of a bank
a.. Accepting Deposit
b.. Lending Money
c.. Issuing Demand Draft
d.. Making Investments

3. 02..Banking is defined in the Banking Regulation
Act.
•Primary function to accept deposit, lend and
invest.
•Secondary functions include opening of Letters of
credit , Issuing Bank guarantees, Demand Drafts
•Mail Transfers, Telegraphic Transfers, Collection
of instruments
•Executor Trustee services, Dealing in Forex
related transactions

4. 03..G has approached the drawee bank
to handover the original cheque issued
by him and since paid to the debit of his
account.
A.. Bank to take permission of the Head
Office
B.. Bank to refuse
C.. At the most they can provide a Xerox
Copy only
D.. Bank to comply with the request.

5. 04..Safe Deposit Locker facilities, accepting
Safe custody articles and so on
•Now bankers offer other services like
•ATM, Debit, Credit and other plastic cards
•Accepting Electricity, Telephone bills , and
extending services on behalf of the Service
providers

6. 05.. As per the provisions of the Banking
Regulation Act, a banking company to file
within 30days of the close of each financial
year a return of unclaimed deposits.
A.. The above statement is not incorrect
B.. The above statement is incorrect.
C.. It is Reserve Bank of India Act
D.. Even the answer C is only partially
correct

7. 06..Latest provisions of KYC and other procedures
to be adopted while making a person as their
customer, the banker has to take due care .
•Any lapse on the part of the bank may cause the
bank at a later stage.
•A banker should be able to justify beyond doubt
that his customer has become his customer after
following all the procedures, norms and he has
acted as a prudent banker.

8. 07..Reserve Bank of India Act,1934 was
enacted to constitute the Reserve Bank of
India
•a.. To regularize the issue of Bank notes
•b.. To Regulate the issue of Bank notes
•c.. For directing the banks when they err
•d.. To Act as the banker of the Central
Government

9. 08 ..Reserve Bank of India act was introduced
in 1934 and since then amended from time
to time to include the latest requirements.
•A provision was inserted by the Information
Technology Act,2000 to enable RBI to
make regulations for regulating payment
systems of banks and financial institutions

10. 09.. RBI’s whole capital is held by the Central
Government.
.. The board has one Governor and not more
than 4 Deputy Governors appointed by the
Central Govt
.. RBI alone can issue and mange currency in
India as per the provisions of RBI act.

11. 10.. RBI as regulator of banking sector is mainly by
virtue of the provisions of the Banking Regulation
Act
•RBI inspects banks and exercise supervisory
powers and may issue directions in public interest
•RBI also collects credit information and make
available the same
•RBI also imposes penalties wherever applicable

12. 11.. Reserve Bank of India has so far not
issued currency notes of the denomination
of
a.. Rs.2/-
b.. Rs.200/-
c.. Rs.5000/-
d.. Rs.10000/-

13. 12..In case of winding up of the banking
company, each depositor will have to make
the claim within 20 days of the winding up
order.
A.. True
B.. False
C.. The claims of every depositor deemed to have
been filed for the amount as shown in the books of
the banking company standing to his credit..
D.. It is not within 20 days but within a period of 15
days.

14. •13.. Other than the Governor, Deputy
Governors of RBI, the other directors are
a.. Appointed
b.. Nominated
c.. Selected
d.. Elected

15. 14..C has appointed M has the nominee for his safe deposit
locker and for savings bank P. Both nominations got
registered with the bank. Nomination form for locker not
signed by C. Both facilities are joint and operation
several.
a.. Operations in the locker will be affected
b.. Operations in the locker will not be affected
c.. On the death of C, P will be entitled to operate the locker
d.. The question of P does arise as he is part of the contract

16. 15.. Making any false statement in any return,
balance sheet or other documents or
information given under the BR act (sec46)
punishable.
A.. The above is incorrect
B.. The above is not incorrect.
C.. Punishment is not for any as stated
above.
D.. Punishment is applicable only when there
is willfully any false statement and so on.

17. 16.. A is the nominee of the Safe deposit articles, deposited
by R with bank L. In the event of death of R
a.. The legal heirs of A will receive the safe deposit articles
b.. A will not be entitled to receive the same
c.. According to the Will the same will be given to the person
mentioned therein otherwise to legal heirs of R.
d.. L will have to hand over to A after completing the related
formalities.

18. 17.. A & B has kept a joint Reinvestment plan
deposit with bank J. U was nominated. Both the
depositors unfortunately died along with U
nominee while traveling in a car due to accident.
a.. Money will be retained by the bank.
b.. Legal heirs of A, B & C would get.
c.. Legal heirs of C alone would get
d.. All the above are wrong.

19. 18.. The co-operative banks are under the
regulatory purview of the Reserve Bank of
India. This is due to the amendment to
•a . Reserve Bank of India Act
•b . Cooperative Act
•C . Banking Regulation Act
•d . Both a & b

20. 19..The State Bank of Hyderabad has been
established as per the provisions of
A.. Hyderabad State Bank Act
B.. State Bank of Hyderabad Act
C.. State Bank Of India Act
D.. Reserve Bank of India Act

21. 20..The State Bank of Saurashtra was
constituted under the
a.. State Bank of India (Amalgamation)
Ordinance,1955
b.. State Bank of Saurashtra Act,1955
c.. Saurashtra State Bank Act,1950
d.. Saurashtra State Banks(Amalgamation)
Ordinance, 1950