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BL - Banking law questions

Banking Law (Karnataka State Law University)

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Essay questions:

1. Explain the functions of Reserve Bank of India.

2. Discuss the ways by which a banker can make profitable uses of funds with him.

3. What is Endorsement? Explain the different types of endorsement.

4. Explain the general relationship between the banker with his customer.

5. What precautions should a banker take in opening a new account?

6. Explain the bankers duty to honour the customers cheques.

7. Examine the grounds under which the banking ombudsman may reject the complaint.

8. Explain the functions of commercial banks.

9. Explain the functions of Reserve Bank of India and discuss its supervisory role.

10. Explain the general principles relating to secured loan.

11. Define ‘Cheque’. How it differs from a promissory note?

12. Who is customer of a bank? Explain the relationship between banker and customer.

13. Explain the various trends of e-banking services.

14. Discuss the powers and functions of banking ombudsman.

15. Discuss the various types of banks along with their functions.

16. Discuss the powers of Reserve Bank of India under Banking Regulation Act, 1949.

17. Explain the precautions to be taken by a Banker while lending against goods.

18. Define cheque. Explain the different kinds of crossing of a cheque along with their effects.

19. “Banker’s duty of a secrecy is not absolute”. Explain when the disclosure of account is justified.

20. What precautions should a Banker take in opening a new account in the name of a minor and a
married woman?

21. What are the ancillary services of a bank?

22. Discuss the functions of commercial banks in India?

23. Discuss the Banker’s obligation to maintain the secrecy of the customers account.

24. What is endorsement? Explain the different types of endorsement.

25. Explain the precautions to be taken by a banker while lending against goods.

26. Examine the grounds under which banking ombudsman may reject the complaint.

27. Define cheque. Distinguish cheque from bill of exchange.

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28. who is paying banker? State the statutory protections available to paying banker.

29. Discuss briefly the functions of Reserve Bank of India along with its promotional role.

30. What are the activities (businesses) permitted by Banking regulation act, 1949 to be taken by the
Banker?

31. Explain the general principles relating to secured plan.

32. What is indorsement? Explain the different types of indorsement.

33. Who is a Banker? Explain general relationship of Banker with his customer.

34. What precautions should a Banker take in opening a new account in the name of a partnership and
trust?

35. Briefly explain the customer’s duties towards his Banker.

36. Explain the functions of Reserve Bank of India.

37. Explain salient features of Banking Regulation Act, 1949.

38. Explain precautions to be taken by the banker while lending against goods.

39. What is endorsement? Explain different kinds of endorsement.

40. “Bankers duty of secrecy is not absolute” – Explain when disclosure of account is justified?

41. Define holder and holder in due course. What are the privileges of holder in due course?

42. Who is paying banker? State the statutory protections available to paying banker.

43. Explain the functions of commercial banks. Examine the recent trends in the functioning of
commercial banks in India.

44. Describe the role of Reserve Bank of India in the economic development of the country.

45. Explain the objectives and features of Securitization act, 2002.

46. What is endorsement? Explain the different types of endorsement.

47. Discuss the banker’s obligation to maintain the secrecy of the customer’s account.

48. What precautions should a banker take in opening a new account in the name of a minor and
company?

49. Discuss the powers and functions of banking ombudsman.

50. Discuss origin and evolution of banking institution in India.

51. Explain the function of Reserve Bank of India.

52. What do you meant by guilt-edged securities? What are the advantages and disadvantages of these
securities?

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53. Explain the priority sectors of credit guarantee schemes.

54. What is negotiable instrument? What are the kinds of negotiable instruments? How negotiable
instruments are different from transferable instruments?

55. What is endorsement? Explain different kinds of endorsement.

56. who is a banker? Explain general relationship of banker with his customer.

57. discuss the precautions to be taken by the banker while opening a new account by Joint stock
company and minor.

58. Write an explanatory not eon ancilary services of a banker.

59. Discuss powers and function of banking ombudsman.

60. Critically examine the contributions of regional rural banks in promoting rural economy.

61. Discuss the management and functions of Reserve Bank of India.

62. Explain the objects and features of Securitization act, 2002.

63. Explain the precautions to be taken by a banker while lending against goods.

64. Define cheque and explain the different kinds of crossing of cheque and its effects.

65. Who is a holder? Explain the rights of a holder in due course.

66. “Banker’s duty of secrecy is not absolute” – Explain when the disclosure of account is justified.

67. Discuss the various precautions to be taken by a banker while opening and operating account of

a. Agent

b. Married woman, and

c. Partnership firm

68. Explain the various e-banking services.

69. Explain the powers of banking Ombudsman.

70. Discuss the powers of Reserve Bank of India under the Banking Regulation Act 1949.

71. Write an explanatory note on the functions of commercial Bank of India.

72. Discuss pros. And cons of accepting ‘Guarantee’ as security as banker’s advance. Would you like to
suggest remedies for apparent drawbacks?

73. What type of documents of the title to goods can be accepted by banker as security for loan. What
precaution he has to take?

74. Explain the rules relating to presentment bill of exchange. When presentment unnecessary?

75. What is crossing of cheque? What are the different types of crossing of cheque?

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76. Define customer. Discuss the special relationship between a banker and customer.

77. Comment on Banker’s obligation to maintain the secrecy of the customer’s account.

78. Comment on the relationship between a banker and a customer with regard to safe deposit vaults.

79. Explain Ancillary services and e-banking remittances.

80. Discuss the various types of banks and their functions.

81. Explain the functions of Reserve Bank of India and discuss its supervisory role.

82. Explain general principles relating to secured loan.

83. Explain the objects and features of Securitization act, 2002.

84. Define promissory note and explain the essential requirements of promissory note.

85. What is endorsement? Explain the different types of indorsement.

86. Discuss the banker’s obligation to maintain the secrecy of the customer’s account.

87. Explain the banker’s duty to honour cheques.

88. Discuss the Internet banking and computerized banking.

89. Explain the powers of banking Ombudsman.

90. Explain the function of commercial bank.

91. What are the activities permitted by the Banking Regulation act, 1949 to be taken up by banker?

92. Explain the general principles relating to Loans and Advances.

93. What are the special banking services? Explain.

94. Define bill of exchange and what are the distinction between bill of exchange and cheque.

95. Define holder and holder in due course. What are the privileges of holder in due course?

96. Who is a customer of a bank? Discuss the general relationship between banker and customer.

97. what precautions should a banker take in opening a new account in the name of minor and
company?

98. Explain the Ancillary services of bank.

99. Discuss Demand draft and Traveller’s cheques.

100. Discuss the functions of commercial banks of India.

101. Explain the salient features of Banking Regulation Act, 1949.

102. Discuss the ways by which a banker can make profitable uses of funds with him.

103. Discuss the advantages of advances secured by collateral securities.

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104. Define cheque. Distinguish cheque from Bill of Exchange.

105. Define ‘Holder’ and ‘Holder in due course’. Are there any differences between them?

106. Explain the term ‘Customer’. State the relationship between banker and customer.

107. “Banker’s obligation to maintain the secrecy of customer’s account is not absolute”. Comment.

108. State the nature of relationship between a banker and a customer in regard to a safe deposit
vaults.

109. Discuss the provisions relating to establishment of office of banking Ombudsman under Banking
Ombudsman scheme 2002.

Short note:

1. Cheque.

2. Commercial banks.

3. Priority sector advances.

4. Agency services.

5. Protection to paying banker.

6. Credit card.

7. Pass book

8. E-banking

9. Customer of a bank.

10. Internet banking

11. Promissory note.

12. Agency services.

13. Cyber evidence.

14. Paying Banker.

15. Banking Ombudsman.

16. Promissory note.

17. Internet banking.

18. State Bank of India.

19. State Bank of India.

20. Special banking services.

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21. A.T.M

22. State Bank of India.

23. U. T. I (Axis bank)

24. Securitization act 2002.

25. Special banking services.

26. Bills in sets.

27. Payment for honour.

28. Garnishee order.

29. Customer.

30. Cyber evidence

31. E-banking

32. State Bank of India.

33. Scheduled and non-scheduled banks

34. Priority sector advances.

35. Financing of exports.

36. material alternation.

37. Bills in sets.

38. Banker’s right to set-off

39. Saving account and current A/c

40. Credit card

41. Travellers cheques.

42. I. D. B. I or U. T. I (Unit Trust of India)

43. Advances to priority sectors

44. Special banking services.

45. Dishonouring of cheque

46. Assignment and negotiation

47. customer’s duties towards his banker

48. Banker’s lien

49. Bank orders

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50. Travellers cheques

51. Regional Rural Bank

52. Origin of Indian Banking

53. Collateral securities.

54. Agency services.

55. Protest

56. Bills in sets

57. Definition of customer.

58. Joint account.

59. Credit card

60. Safe deposit vaults-facility by the banker.

61. Unit Trust of India.

62. Types of banks

63. Letter of Indication.

64. Gaurantees.

65. Material alteration.

66. Collecting banker.

67. Garnishee order.

68. Definition of banker.

69. Gift cheques.

70. Money transfer.

71. Types of Banks.

72. R. B. I

73. Financing of exports.

74. Agency services.

75. Protecting to paying banker.

76. Noting and protest

77. Banker’s lien

78. Banker’s right of set-off

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79. Travellers cheque

80. Cyber evidence

Problems:

1. ‘A’ signs an instrument as follows: I promise to pay ‘S’ or order Rs. 50,000. Is it a valid promissory
note?

2. S, O, and N are partners in the SON firm. They informed the banker that ‘S’ and ‘O’ will operate the
firms current account. Can banker honour the cheques of the firm signed by ‘S’ and ‘N’?

3. A customer of a corporation bank approaches another branch of the same bank for loan facility
against fixed deposit receipt of Rs. 500000/- issued in his favour. Whether his request for loan can be
considered? Decide.

4. One Mr. Venkat has a current account in Vijaya bank. A cheque for Rs. 50, 000 was issued by him in
favour of his minor son, Ramesh is presented for the payment at the counter of the bank. Can the
banker pay the amount to the minor son of the drawer? Decide.

5. A customer has a credit balance of Rs. 2080 in his current account. Three cheques of Rs. 1000, Rs. 500,
and Rs. 1200 are simultaneously presented for payment. As a banker how will you act in this situation?
Decide.

6. A fixed deposit receipt marked as “not transferable”. But it was transferred by the depositor to
another person? Decide its validity.

7. R has executed the instrument in favour of Mr. X as follows: “Mr. X I O U Rs. 100000”. Is it a valid
promissory Note? Give reasons.

8. A and B opened a savings bank account payable jointly. B informs the banker that A is dead and
produces a death certificate in this regard and also demands for payment of balance amount. But the
banker refuses to pay. Can B file a suit against Banker? Will it make any difference, if the account if
opened in the style of ‘either’ or ‘survivor’?

9. Examine the legal position of the banker in the following cases:

i. B deposits gold ornaments worth Rs. 50000 with the banker for safe custody.

ii. D deposits Rs. 40000 with the banker to be held for two years as a fixed deposit.

10. A, B, C, and D are partners in the Y firm. They informed the banker that A and B will operate the
firm’s current account. Can banker honour the cheques of the firm signed by A and C?

11. Rajesh could not present the cheque received from his friend due to the busy schedule. Period of
limitation is about to expire on a day which happens to be a public holiday. Advice Rajesh.

12. A customer of a Canara bank approaches another branch of the same bank for loan facility against
F.D receipt of Rs. 2000000 issued in his favour. Whether his request for loan can be considered? Decide.

13. ‘H’ signs an instrument in the following form: “I promise to pay ‘S’ or order Rs. 100000 on the
marriage day of ‘S’” is it a valid promissory note? Give reasons.

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14. ‘C’ instructs his Banker to buy certain debentures for him and asks the Banker to keep them for him
and collect the interest on them. Subsequently, ‘C’s current account is overdrawn. Can banker exercise
the lien over debentures?

15. ‘A’ maintains an account in his sole name and enjoys an overdraft which he does not repay despite
demands. The banker adjusts the overdraft from the credit balance held in the account in the joint
names of ‘A’ and ‘B’. ‘B’ challenges it and demands for restoration of amount from the banker. Decide.

16. Ramesh couldn’t present the cheque received from his friend due to busy schedule. Period of
limitation is about to expire on a day which happens to be a public holiday. Advice Ramesh.

17. Krishnamurthy has given a cheque of Rs. 5000/- in the name of his minor son Srikanth. Can the
banker honor the same?

18. A, B, C, and D are partners in the ‘X firm’. They informed the banker that ‘B’ and ‘C’ will operate the
firm’s current account. Can banker honor the cheques of the firm signed by ‘B’ and ’D’ ?

19. Mr. Shankar couldn’t present the cheque received from his friend due to busy schedule. The period
of limitation is about to expire on a day which happens to be a holiday. Advice Mr. Shankar.

20. ‘X’ and ‘Y’ maintain a joint savings bank account. ‘Y’ informs the bank that ‘X’ is dead and produces a
death certificates thereof ‘Y’ requests the banker for the payment to him of the balance in the account.
What would you do as a banker? Decide.

21. A customer of a Canara Bank approaches another branch of the same bank for loan facility against
F.D receipt of Rs. 10000000 issued in his favour. Decide

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