B.A. LL.B. (Five Years) Sem 10 Law of Banking and Negotiable Instruments May 2012 Question Paper - Mumbai University | munotes

Questions asked in this paper

Q.1 Q.1: Answer the following (20 Marks - 2 marks each)

1. (a) What is endorsement of a Negotiable Instrument?
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2. (b) What is 'Noting'? Who does it?
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3. (c) What is 'Bank Rate' as per RBI Act?
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4. (d) What is qualification for appointment as 'Presiding officer' of a Tribunal under Recovery of Debts due to Bank and Financial Institution Act, 1993?
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5. (e) Define Drawer, Drawee and Payee of a Bill of Exchange?
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6. (f) What is 'Legal Proceedings' under Bankers' Books Evidence Act?
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7. (g) Who is 'holder' as defined under Negotiable Instruments Act?
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8. (h) What is a 'Scheduled Bank'?
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9. (i) What is an "ambiguous instrument"?
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10. (j) What are the liabilities of 'issue Department' of Reserve Bank?
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Q.2 Q.2: Write short notes on any four of the following (20 Marks - 5 marks each)

1. (a) RBI as a Banker and Advisor to the Government.
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2. (b) Holder in Due Course.
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3. (c) Noting and Protesting.
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4. (d) Debt Recovery Tribunal.
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5. (e) Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
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6. (f) SEBI.
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Q.3 Q.3: Answer the following by giving reasons, any two (12 Marks - 6 marks each)

1. (a) Analyse the following under Banking Regulation Act, 1949: (i) A banking company commences its business as its paid up capital is less than one half of its subscribed capital. (ii) 'A' approached the bank for a loan of ₹ 10 crores for his business. He is ready and willing to furnish the security and one of the directors of the bank is ready to become the guarantor can 'A' get a loan? (iii) A banking company transferred to the reserve fund a sum equivalent to 15% of its balance of profit.
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2. (b) 'A' signs instruments in the following term. State giving reasons whether they are promisory note or not: (i) "I promise to pay on demand ₹ 500 to B at my convenience." (ii) "I do acknowledge myself to be indebted to 'B' ₹ 10,000/- to be paid on demand for value received." (iii) "I promise to pay 'B' ₹ 10,000/- out of money due to me from 'C' as soon as 'C' pays."
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3. (c) Analyse the validity of the following under the relevant provisions of Banking Regulation Act, 1949: (i) RBI issues a circular to all commercial Banks that they shall not charge interest over and above 18% p.a. on their Housing advances. (ii) The district court of Pune passed a decree against Dena Bank that the rate of interest charged by it from one of its customers is excessive. (iii) Mr. Ravi Seeks a loan of ₹ 50 crores for his business. He is willing to furnish security one of the directors of the bank is willing to sign as his guarantor. Can the loan be granted?
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Q.4 Q.4: Answer the following, any four (48 Marks - 12 marks each)

1. (a) What is crossing of a cheque? Explain various provisions relating to crossed cheques in Negotiable Instruments Act.
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2. (b) Compare and contrast Promisory note, Bill of Exchange and a cheque.
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3. (c) Discuss the provisions of RBI Act relating to management of Reserve Bank, composition of the central Board, as terms of office of the directors.
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4. (d) Explain the form of business in which a banking company may engage under the provisions of Banking Regulation Act, 1949.
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5. (e) What is endorsement? Discuss the various types of endorsement under Negotiable Instruments Act.
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6. (f) What is credit control? What are the methods of credit control used by RBI?
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