LLB 3 Years Sem 6 Banking Laws Apr 2011 Law Of Banking And N I Act Question Paper - Mumbai University | munotes

Questions asked in this paper

• Figures to the right indicate full marks assigned to the questions

1. Q1 Answer the following in not more than two sentences 20 marks
   • (a) What is a Promissory Note ?
   • (b) What does the expressions “at sight" and "on presentment" mean in a Bill of Exchange or Promissory Note When the day on which a Promissory Note or Bill of Exchange is at maturity is a public holiday, the instrument shall be deemed to be due ?
   • (d) What is noting and who does it ?
   • (e) What is the effect on payment of a cheque crossed generally and specially ? are the obligations of Government of india and Reserve Bank of India in respect of rupee coin ?
   • (g) What is a "Bank Rate" as per Reserve Bank of India, Act ?
   • (h) the interpretation of the term as per the Banking Regulation Act,
   • (i) | Whatis interpretation of the term "demand and time liabilities" as per BR Act, 1949?
   • (j) | Whatis the qualification for appointment as Chair Person of Tribunal under the "Recovery of Debts due to Banks and Financial Institutions Act, 1993"
2. Q2 Write short notes on any four :— ~ 20 marks
   • (0) Inland and Foreign bills
   • (c) Kinds of endorséments
   • (d) The bankers Books Evidence Act, 1891
   • (e) Assets and liabilities of the Issue department of Reserve Bank
   • (f) Licensing of banks and their branches
3. Q3 Answer the following by giving reasons (any two) 12 marks
   • (a) State giving reasons whether drawee bank is justified in refusing the payment of ‘ (i) The cheque is dated 01-03-2011 and presented for payment on 01-04-2011 The drawer of the cheque died on 15-03-2011 and the drawee bank had a notice of his death on 25-03-2011
   • (ii) In respect of an account held by a customer A, the bank received on 1-04-2001, two cheques one dated 20-3-2011 for Rs. 50,000/- and another dated 25-3-2011 for Rs. 60,000/- respectively. On that day i.e. 01-04-2011 the account had a balance of Rs. one lakh only
   • (iii) On 01-04-2011 the drawee bank received a cheque dated 01-03-2011 for Rs. 20,000 in respect of an account held by customer A. On 15-03-2011 the bank received a notice that the customer A has become person of Pa txam. May 11 16
   • (b) State giving reasons whether the drawee bank is justified in refusing the payment of a crossed cheque :—
   • (i) The cheque is crossed generally and presented to the drawee bank across the counter for payment in cash
   • (ii) The cheque is crossed specially to a banker A and presented to the drawee bank by a banker B for collection
   • (iii) The cheque is crossed specially to two banks |.e. A and B and presented to drawee bank by a bank A alone for collection
   • (c) Analyze the following under the relevant provisions of the Banking Regulation
   • (i) Can a banking company carry on its business of banking in India without using the words or ‘banking’ as part of its name ?
   • (ii) A foreign banking company incorporated outside India desires to commerce banking business in India and applies for a license to Reserve Bank. But the Government of that country does not allow opening of banks/branches by Indian banking companies
4. Q4 Answer the following (any four) 48 marks
   • (a) State the various rules as laid down under the Negotiable Instrument Act, 1881 relating to presentment for acceptance and presentment for payment. When presentment is unnecessary ? Define Bill of Exchange : What are the essential ingredients of a valid Bill of Exchange ? How does it differ from Promissory Note ? Compare Bill of Exchange cheque and draft
   • (c) for insufficient funds is a criminal offence." Critically examine referring to the appropriate provisions of Act, 1881
   • (d) Discuss the provisions of the Act, 1934 relating to —
   • (i) the business which the Reserve Bank may transact (under sections 17 and 18 of the Act)
   • (ii) the business which the Reserve Bank may not transact (Section 19 of the
   • (e) Discuss the various provisions of the Banking Regulation Act relating to — Acquisition of the undertaking of the banking companies in certain cases
   • (ii) Suspension of business and winding up of the banking companies
   • (f) Explain how the B.R.Act, 1949 seeks to regulate managerial structure of the banking companies in matters of composition appointment and removal of the directors of the board chairman and other staff
   • (a) ase)

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