Q.

In which year the Bankers Book Evidence Act c) It maintains a register to enter particulars relating
was enacted? to reconstruction of financial assets
a) 1891 b) 1906 c) 1934 d) 1947 d) It maintains a register to enter particulars relating
Q. Which of the following statements, is correct to creation of security interest
regarding the Bankers Book Evidence Act? e) All the above d) None of the above
a) It is special Act which provides certain privileges Q. Can the public inspect the register maintained by
to Banks Central Registrar?
b) The Act deals in connection with mode of proving a) Yes on payment of prescribed fee
of entries in their Books b) No as it is a confidential document
c) The Act also have provision regarding production c) Yes only by the lender or by the borrower
of Books in the Court of Law d) None of these
d) All the above Q. What is a certified copy?
Q. Which of the following are the essential features a) A copy of any entry in the Books of a Bank with a
of Law of Evidence? certificate that copy is a True Copy
a) The conditions and contents of a document can b) That such entry is contained in one of the Books
be proved before a court only by providing original of the Bank
document c) All such Books are still under the custody of the
b) So long original documents are available, a copy Bank
cannot be produced. d) A copy which includes all the above
c) However there are certain exceptions to the Law information
d) All the above Q. Which of the following statements, is not correct
Q. What are the exceptions of Evidence Act? regarding Bankers Book Evidence Act?
a) A certified copy of the original document can be a) The certificate issued by Bank should have
produced in the Court of Law if it is permitted by any signatures of the authorized person and it should be
law dated
b) The Bankers Book Evidence Act, is also an b) It should be supported by original document
exception to the Evidence Act c) The certified copy will be treated as prima facia
c) Both (a) and (b) evidence
d None of the above d) The Bank will ensure the accuracy of the copy
Q. Which of the following is included in the Bankers Q. Which of the following statements, is correct
Books? regarding Bankers Book Evidence Act?
a) Ledger and Day Books a) No officer of a Bank can be compelled to produce
b) Cash Books and Account Books any Bankers Books unless it is specially ordered by
c) All other Books used in the ordinary business of a the court
Bank b) The above provision (a) applies only when the
d) All the above Bank is not party to the case
Q. What is the permeable of the Sarfaesi Act? c) An investigating Police officer can compel a Bank
a) To regulate securitization and reconstruction of officer to produce the Books without court order
financial assets d) All the above
b) Enforcement of security interest Q. Legal proceeding under Bankers Book Evidence
c) Both a and b Act, signifies:
d) None of these a) Any proceeding or inquiry in which evidence is
Q. Appellate Tribunal is established under: given
a) Sarfaesi Act b) an arbitration
b) Recovery of Debts Due to Banks and c) Any investigation under the code of Criminal
Financial Institutions Act Procedure, 1973
c) Indian Contracts Act d) All the above
d) None of these Q. What are the powers of the court in case of legal
Q. What do you understand by Asset proceedings under the Bankers Book Evidence Act?
Reconstruction? a) Permit the affected party to inspect the Books and
a) It means to reconstruct the assets of the borrower take copies
b) It means acquisition by Reconstruction b) Order the Bank it prepare and produce within
Company of any financial asset for the purpose specified time the certified copies
of realization of such assets c) Order the Bank to prepared certificate as desired
c) None of these under the law
Q. What is Central Registry set up under d) All the above
SARFAESI Act? Q. What is the main objective of establishing Debt
a) It is the registered office set up by the Central Government
Recovery Tribunal Recov
b) It maintains a register to enter particulars relating a) To deal with cases of recovery of debts below
to securitization of financial assets Rs. 10 lacs
b) To deal with cases of recovery of debts below d) All the above
Rs. 10 lacs and above Q. What does execution of document signify?
c) To deal with cases of recovery of debts irrespective
a) It must be of properly
the amount of debtas per the specimen
executed
d) None of the above signature recorded with the Bank
Q. What do you understand by financial asset? b) It should be properly stamped
a) It is claim to any debt or receivables whether c) It should
secured be registered, if required
or unsecured
b) It is any debt or receivables secured by d) All theofabove
mortgage immovable property
c) It is any right or interest in the security , whether Q. Who is the Originator?
full or part underlying such debt or receivables a) It means the owner of the financial asset which is
d) It is a mortgage, charge, hypothecation or pledge acquired by the Securitisation Company for securit
or movable property b) It means the owner of the financial asset which is
e) It is any beneficial interest in movable or immovable
acquired by property
the Reconstruction Company for asset recons
f) All the above g) None of the above c) a or b d) None of the above
Q. What is hypothecation? Q. Who is a Qualified Institutional Buyer?
a) It is a charge upon any movable property existing a) It is a financial institution or an insurance
or future created by the borrower in favor of secured company
creditor b) It is a bank, State financial corporation or State
b) It is a charge created by the borrower on movable Industrial Development Corporation
property without delivering its possession to the c) It is a securitization or Reconstruction company or
creditor
c) It is a charge created by the borrower on an Asset Management Company making
movable property in favor of the creditor as security investments on behalf of mutual fund
for a loan d) It is Foreign Institutional Investors registered with SEBI
d) All the above e) All the above
e) None of the above f) None of the above
Q. What do you understand by Non- performing Q. What is the role or a Securitisation or Asset
asset of a bank? Reconstruction Company? Recon
a) It is an asset (advance) or account classified by the
a) bank
It acquires
as sub NPAs of banks and financial
b) It is an asset or account classified by the bank as doubtful
institutions by issuing bonds or debentures to them
c) It is an asset or account classified by the bank as loss
b) Itasset
helps in management of distressed credit in financi
d) a or b or c e) None of the above c) Both a and b d) None of the above [c]
Q. Who is an Obligator? Q. How the assets are reconstructed by Asset
a) He is a person liable to the Originator under a contract to pay a Company?
Reconstruction financial asset Recon
b) He is a person liable to the Originator under a contract
a) By taking
to discharge
over the
anmanagement
obligation in respect
of the borrower
of a
c) He is a person who is liable to the Originator company
under a contract to discharge an obligation in b) By infusing more funds to make the asset perform
respect of a financial asset whether existing or c) Either a or b d) None of the above
future, conditional or contingent and includes Q. How the funds are raised by Securitisation or
the borrower Asset Reconstruction Company?
d) All the above a) By issuing security receipts to investors
e) None of the above b) By issuing equity shares to the investors
Q. In how many days a Bank is required to comply c) None of the above
with court orders under Bankers Book Evidence Q. Documentation is necessary because of:
Act? a) It helps to identify/Specify the borrower
a) 3 days excluding Bank holidays b) It helps to identify security
b) 7 days excluding Bank holidays c) It works as a written evidence
c) 10 days excluding Bank holidays d) All the above
d) 15 days excluding Bank holidays Q. Which of the following is not relevant to
Q. According to Section 3 of Evidence Act, the documentation?
Document can be defined: a) It is an evidence of creating a charge over the
a) Any matter expressed or described upon any security
substance by means of letter, figure or marks. b) It can recognize forged transactions
b) By any other means c) It provides a right to the Bank to File a summary
c) It intends to be used for purpose of recording that suit
matter d) It defines rights and obligations of the parties
d) All the above thereto
Q. Evidence means: Q. The requirement of execution of documents
a) All statement presented before a court by way of depends on:
witness a) Nature of credit facility
b) It is in relation to a matter of fact under inquiry b) Nature of security of loan
c) Such statements are called oral evidence c) Constitution of business
d) All the above a) 12 years from the date the money is due if money
Q. The security documents can be way of: is to be recovered by sale of mortgaged property
a) Personal security b) Primary security b) 3 years from the date the money is due for
c) Collateral security d) Any or all the above payment if borrower is made personally liable
Q. Which of the following one stamp where c) 30 years when the right to redeem or recover
documents are required to be stamped? possession of immovable property
a) Adhesive Revenue Stamp d) All the above
b) Special Adhesive/Embossed Stamp Q. Which of the following statements is correct?
c) Bill of Exchange Stamps a) There is no period of limitation for sale of pledged
d) All the above goods
Q. What is Security Receipt issued by a b) In case of Hypothecation the limitation period
Securitisation or Asset Reconstruction Company? from the due date of loan
a) It is a receipt issued by the company to the c) Bill of Exchange has 3 years limitation period from
investors evidencing acquisition of an undivided the due date
right, title or interest in the financial asset d) All the above
involved in Securitisation Q. The percentage of owned funds to be specified
b) It is a receipt issued by the company for raising by the Reserve Bank should not exceed ––––– of
equity capital from the investors total financial assets acquired or to be acquired by
c) None of the above the Securitisation or Asset Reconstruction
Q. Who is a “Sponsor”? Company.
a) He is a person who sponsors the scheme of
a) 15% b) 25% c) 10%
Securitisation of the Securitisation Company
d) None of these
b) He is a person who holds not less than 10% of
Q. The scheme and guidelines formulated by RBI
the paid – up equity capital of a Securitisation
contemplates a structure for the purpose of
Company
undertaking securitisation or reconstruction activity
c) None of the above
by the Securitisation and Reconstruction Company.
Q. Sarfaesi Act is applicable to pledged securities
What is it?
also. (True/False)
a) The company can formulate separate schemes
Q. Who issues the registration certificate for a
for acquisition of financial assets
Securitisation or Reconstruction Company?
b) Create Trusts for each scheme and maintain
a) Registrar of Companies
separate and distinct records
b) Reserve Bank of India
c) The Company can act as a trustee for such
c) Central Government
Trusts created by it and mange the assets held in
d) None of these
trust
Q. What should be the minimum networth of a
d) All the above
Securitisation or Reconstruction Company?
e) None of the above
a) Rs.100 crore b) Rs.1 crore
Q. What is the period within which the Securitisation
c) Rs.2 crore d) As specified by RBI
or Asset Reconstruction Company can make an
e) c or d
appeal to the Central Government against the
f) None of these
cancellation of its certificate of registration by the
Q. The Adhesive Revenue Stamps are affected on:
Reserve Bank?
a) Demand Promissory Notes
a) 15 days from the date of communication of the
b) Acknowledgements
order
c) Balance Confirmation, Receipts
b) 30 days from the date of communication of
d) All the above
the order
Q. Special Adhesive/Embossed Stamps are used in:
c) 60 days from the date of communication of the
a) Hypothecation Agreement
order
b) Pledge Agreement
d) None of the above
c) Letter of Guarantee
Q. What is Securitisation as per Sarfaesi Act?
d) All the above
a) It is acquisition of financial assets
Q. In which of the following documents the limitation
b) It is raising of funds by issue of security receipts
period is 3 years?
c) Both a and b d) None of these
a) Demand Pronote from the date of DP note
Q. Can a Securitisation Company acquire the assets
b) Overdrafts from the date of advances
of an RRB?
c) Terms Loan from the date of default in payment of
a) No since RRBs are kept outside the definition
each installment
of bank under Sarfaesi Act
d) All the above
b) Yes since RRBs are also banking institutions
Q. Which of the following statements is not correct
c) None of these
regarding Law of Limitation in case of mortgage
Q. Extension of limitation period can b way of:
loan?
b) Acknowledgement of debt
c) Part payment
d) All the above
Q. The process of providing documents to Police or
CBI is:
a) They may seize a document set for investigation
in case of fraud
b) They may be given certified Xerox copy
c) If they insist for original Xerox copy should be
retained with the Bank
d) All the above
Q. Which of the following are the important Cash
Books being maintained by the Bank?
a) Cash Received and Payment Book
b) Sectional Cash Book
c) Cash Balance Book
d) All the above
Q. Which of the following can be proved in the Court
Law according to Bankers Book Evidence Act?
a) Existence of a document
b) Condition of a document
c) Contents of a document
d) All the above
Q. Which of the following statements, is correct
regarding the provisions of Bankers Book Evidence
Act?
a) Entries in Books of Accounts regularly kept in the
courts of business are relevant in the matter of court
inquiry
b) However, above statements shall not alone be
sufficient evidence to cheque any person with
liability
c) The entries in the Books can be used as
corroborative evidence
d) All the above
Q. How the financial assets of bank are acquired by
a Securitisation or Asset Reconstruction Company?
a) By issue of a debenture or bond or any other
security in the nature of debenture agreed upon
b) By entering into an agreement with such bank for
transfer of such financial asset to such company
c) The Securitisation or Asset reconstruction
Company can acquire financial asset of a bank
without execution of any deed of assignment in its
favour by the concerned bank
d) Either a or b or c
e) None of the above
Q. Why debentures are issued by a Securitisation or
Asset Reconstruction Company to banks?
a) It is issued for the purpose of payment of
consideration to be paid to a bank for
acquisition of financial asset from them
b) It is issued for the purpose of raising funds for the
activities of the Securitisation or Asset
Reconstruction company
c) None of these
Q. When the financial assets of a bank are acquired
by a Securitisation or Asset Reconstruction
company, the bank has to issue a notice to :
a) The obligator i.e., the borrower
a) Obtaining fresh set of documents
b) The Registrar of Companies with whom the
charge is registered
c) To the Central Registrar d) a,b and c
e) a or b or c f) None of the above
Q. On receipt of a notice of acquisition of financial
assets of a bank by the Securitisation or Asset
Reconstruction Company, what the borrower should
do?
a) He should make payment to the bank concerned
which will constitute a full discharge of all his liability
b) He should make payment to the Securitisation
or Asset Reconstruction Company which will
constitute a full discharge of all his liability
c) Either a or b
d) None of the above
Q. Can the bank take forcible possession of
secured assets of a borrower in case of his default,
Under Sarfaesi Act?
a) Yes b) No c) None of these
Q. Which of the following is correct?
a) The provisions of Bankers Book Evidence Act.
Applies even the Books maintained by Bank are in
electronic form
b) The Act. Also applies to any investigation under
the criminal procedure
c) Bank officer cannot be compelled to produce
original Books unless the court directs
d) All the above
Q. Can a party call a Bank officer as witness to
prove contents of a copy. Choose the right option
from the following?
a) No, certified copy is a prima facia evidence
b) Yes, the party has right to call Bank officer
c) Bank may volunteer itself
d) Yes, he can be called
Q. Which was the first committee recommended for
establishment of Special Recovery Tribunals for
Books and Financial Institution?
a) Tiwari Committee
b) Ojha Committee
c) Narasimham Committee
d) Rangrajan Committee
Q. In which year the Tiwari Committee
recommended for establishment of Special
Tribunals for Banks dues recovery?
a) 1981 b) 1987 c) 1991 d) 1995
Q. Which of the following committees also
recommended the set up of Debt Recovery
Tribunals?
a) Committee on Financial Sector Reforms
b) Committee on Custom Service
c) Committee on RRBs
d) None of the above
Q. What are the other important functions of a
Securitisation or Asset Reconstruction Company?
a) To act an agent of a bank for recovering its dues
from the borrower
b) To act as receiver if appointed by a Court of
Tribunal
c) Both a and b b) Arrest the defendant or detention in jail
d) Either a or b c) Appointing a Receiver for the management of the
e) None of these movable or immovable property
Q. Who is empowered to determine policy and d) All the above
issue directions to all or any Securitisation or Asset Q. Movable assets in possession of the bank
Reconstruction Company? cannot be sold without intervention of the Court as
a) Central Government b) RBI per:
c) SEBI a) Provisions of Indian Contract Act,1872
d) None of these b) Cannot be sold without Court’s permission
Q. What is the period within which a Securitisation c) Sarfaesi Act
or Asset Reconstruction Company which has d) None of the above
acquired the financial assets of a bank, has to Q. Sarfaesi Act applies to which of the following
formulate a plan for realization of assets so securities?
acquired? a) Mortgage securities
a) 6 months b) 18 months b) Any movable or immovable security charged to a
c) 12 months d) None of these bank or financial institution
Q. Can a Securitisation company raise funds by c) Where security interests are created for
way of deposits from the public? repayment of financial assistance given by a
a) Yes b) No bank/financial institution
c) None of these d) Owned by a NPA borrower but not charged to the
Q. Can a Securitisation company which has bank
acquired the financial assets of a bank disclose the e) None of these
name of that bank in its balance sheet? Q. Can the mortgaged property be sold by a bank
a) Yes b) No or financial institution without Court intervention?
c) None of these a) No since Sarfaesi Act has enabling provisions
Q. In which year the Recovery of Debts Due to b) Yes, Court intervention is required as per the
Banks and Financial Institutions Act, was enacted? provisions of Transfer Property Act
a) 1991 b) 1993 c) 1994 d) 1995 c) Yes since Contract Act has no such provision
Q. In which of the following states the Recovery of about Court intervention
Debts Due Act is under implementation? d) Both a and b
a) Selected States of the Country e) None of the above
b) All the States of Country Q. Secured Creditors under the Sarfaesi Act cover:
c) All over the country except Jammu & Kashmir a) Any bank/ financial institution /any consortium of
d) No such limitations group of banks or financial institutions in whose
Q. Which of the following cases to the Recovery of favour security interest is created by the borrower
Debts Due Act, is applicable? for due repayment
a) Where amount involved is less than Rs. 10 lacs b) Debenture Trustees appointed by a bank/
b) Where amount involved is Rs. 10 lacs or financial institution /securitisation company/
above reconstruction company
c) Where amount involved is upto Rs. 1 lac c) Any trustee holding securities on behalf of a bank
d) No such restriction or financial institution
Q. The Central Government has powers to authorise d) All the above
Tribunals to hear cases where amount involved is e) None of the above
less than Rs. 10 lacs but more than: Q. Can the provision of Sarfaesi Act be invoked for
a) Rs. 10 lcas b) Rs. 2 lacs proceeding against the charged property?
c) Rs. 5 lacs d) Rs. 7 lacs a) Yes provided there is a default in meeting the
Q. What was the main objective of setting up of Debt instalments due
Recovery Tribunals? b) Yes when RBI instruct them to proceed against
a) To transfer all the cases of Bank recovery from the borrower
civil court to the Tribunals c) Yes when the banks is of the opinion that it is
b) To set up an exclusive agency for Bank dues necessary to recover the loan due
recovery d) Yes when there is default in repayment of the
c) To set up Special Tribunal which can provide loan and the bank has classified it as NPA
speedy court remedies e) All the above
d) All the above f) None of the above
Q. What are the various modes available to the Q. How many Debt Recovery Tribunals have been
Recovery officer for proceeding to recover the set up in India?
amount of debt? a) 27 b) 28 c) 29 d) 50
a) Attachment or sale of movable or immovable Q. What is the jurisdiction area of a Debt Recovery
property Tribunal?