LLB 3 Years Sem 6 Banking Laws May 2023 NI Question Paper - Mumbai University | munotes

Questions asked in this paper

• NB: Figures to the right include full marks assigned to the questions

1. Q1 Answer in not more than two sentences (Attempt any six) 12 marks
   • a) Write any two presumptions applicable to negotiable instruments
   • b) What is “legal proceedings” under the Bankers Books Evidence Act?
   • c) When an instrument becomes a bearer instrument?
   • d) Which instruments are entitled to days of grace?
   • e) What is the liability of RBI in respect of stamp duty on banknotes?
   • f) What is the liability of the drawee of a cheque?
   • g) What are the Demand and Time Liabilities as per the banking Regulation Act?
   • h) What is the purpose for which the RBI is constituted?
2. Q1 Whether a minor can become a party to a negotiable instrument?
   • j) Write any two examples of instruments negotiable by custom
3. Q2 Short Notes (Attemptany two) 12 marks
   • a) Acceptance of Bill of Exchange
   • b) Local Boards
   • c) Crossing of Cheques
   • d) Reserve Bank as Banker’s Bank
4. Q3 Answer with reasons (Attempt any two) 12 marks
   • i. State whether the following instruments, duly signed by Mr. A are valid promissory notes
   • a) “I promise to deliver 10 bags of rice to Mr. B”
   • b) “I promise to pay rupees one thousand only to Mr. B after one month” li. State whether permission from the RBI is required in the following cases
   • a) ABC Bank wants to open two new branches
   • b) PQR Bank wants to shift its branch to another location in the same city
   • a) Mr. A had indorsed a bill of exchange in favour of Mr. B. The bill was dishonoured by the acceptor. Is Mr. A liable to Mr. B ?
   • b) Mr. A has drawn a cheque favouring Mr. B. Mr. A had sufficient funds in his account. Still the cheque was dishonoured by the drawee banker. To whom is the drawee
   • iv. XYZ Bank wants to carry out the following transactions. Can it do so?
   • a) Remit the whole of the debt due to it by its directors
   • b) Grant loans on the security of its own shares
5. Q4 Long Answer Type Questions (Attempt any two) 24 marks
   • a) Discuss the business that may be transacted by the RBI
   • b) What is the difference between ‘Holder’ and ‘Holder in Due Course’. What are the various rights and privileges of a Holder in Due Course?
   • c) State the provisions regarding dishonor of a negotiable instrument
   • d) State the provisions about board of directors and chairman of banking companies

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