Banking Assignment

Answer any five:

1. A cheque is presented for payment to your branch through clearing in which the
amount in words was stated as Rs. Forty five thousand only, and in figures was
written as Rs.4500. the amount in words is paid by the bank. On receipt of the
statement of account from the bank, the customer disputes the payment and states
that he had never meant to pay the amount in words. He claims that the bank
should have paid only Rs. 4500 being the lower amount and requests for
restoration of the excess amount. What would you do?

Ans. Bank have to pay the rest amount. . In case of any alteration bank need not to pay.
So the bank is guilty. Bank officer must need to satisfied that information given is correct
or not. Becouse once money paid from bank counter all responsibility of bank officer
who paid that money.

2. Mr. Dutta, an account holder of your branch issued a cheque on February 12,
2008 but forgot to write the date on the cheque. On his counterfoil, however, he
writes the date as February,28,2008. The payee of the cheque came to the branch
on February 14,2008 to obtain the payment, which you refused to pay. He then
put the date as February 14,2008 and obtained payment. On the same day, Mr.
Dutta came to the branch with a request to stop payment of the cheque. When the
bank informed him about the payment, he asked the bank to restore the credit, as
he had not written the date. What should the bank’s position be?

Ans.bank is not protected by law

3. Mr. Y having a current account with your bank (ABC Bank) had drawn an
uncrossed bearer cheque for Rs.15000 favouring ABC Bank to get a demand draft
issued, and sent his servant to get the demand draft prepared. The servant,
however, presented the cheque across the counter and obtained cash payment and
ran away with the money. When the customer came to know about this, he asked
the bank to restore the amount as bank should not have made cash payment when
the bank was the payee of the cheque, although it was a bearer cheque. The bank,
on the other hand, insisted that it was a bearer cheque and that the bank was not
negligent in making payment of the cheque. What is the liability of the bank, in
your view?
4. A customer approaches your branch to open a fixed deposit account of Rs.20lacs.
He also assures you of another deposit of Rs.10lacs within 2 months. He.
However, wants that the bank should not disclose any information to the income-
tax authorities at any time during the currency of the deposit. What kind of
assurance will you give to the customer?
5. The Delhi branch of Universal Bank has been maintaining a fixed deposit account
maturing two years later, and a savings bank account in the name of Mr. D.Dixit,
sub-editor of the local newspaper. While scanning the newspaper, the branch
manager comes across a report that burglars had burgled the house of Mr.Dixit
and killed him and his wife and decamped with their valuables. The following
transactions relating to his account take place on the date of this report in the
newspaper. How will the bank proceed with these transactions:-
a)a cheque favouring LIC for Rs.15000( being the annual premium on a policy
obtained by him in the name of his son) is received for clearing.
b) a garnishee order is received in the name of Mr. Dixit and his wife.
6. You received a request from the managing partner, Mr.A of ABC and Sons, a
partnership firm, authorizing X, the son of partner B and Y, the son of partner C
to operate the current account of the firm which has substantial balance, since all
partners have to attend a business conference in a different part of the country.
The account of the firm is very valuable to the bank, and non acceptance of the
direction of the managing partner could result in shifting of this account to
another bank. What precautions should the bank take while considering this
request?
7. Corporate Bank is approached by M/S Soft Technologies Pvt Ltd to open a
current account in their name. They produce copies of their Memorandum of
Association, Articles of Association and other documents along with the copy of a
resolution passed by their board of directors in a meeting attended by 4 directors
of the company. It is, however stated in the Articles of Association that bank
accounts can be opened on the basis of resolution passed in a meeting attended by
5 directors. The company, for the time being, has only 4 directors. Being a new
company, they are not in a position to offer introduction, and they request the
manager to arrange introduction. They have agreed to keep a minimum deposit of
Rs.15lacs in their current account. What should the branch manager do?