LL.B. (Three Years) Sem 6 Law of Banking and Negotiable Instruments Nov 2013 Question Paper - Mumbai University | munotes

Questions asked in this paper

Q.1 Q.1: Answer the following in not more than two sentences (20 Marks - 2 marks each)

1. (a) What is endorsement in Blank?
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2. (b) What is 'at sight'?
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3. (c) What is cheque crossed generally?
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4. (d) What is the interpretation of the term 'Banking' as per Banking Regulation Act of 1949?
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5. (e) What is the definition of 'Unclaimed deposits' as per the BR Act?
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6. (f) What is 'on presentment'?
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7. (g) What is the minimum and maximum percentage of cash reserve to be maintained by the Banks?
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8. (h) What is a promisory note?
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9. (i) What is Negotiable Instrument?
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10. (j) What is the mode of proof of entries in the Banker's Book Eevidence Act of 1891?
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Q.2 Q.2: Write short notes on any four (20 Marks - 5 marks each)

1. (a) Holder in due course.
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2. (b) Kinds of endorsement.
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3. (c) Bills in sets.
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4. (d) Debt Recovery tribunals.
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5. (e) Reserve Bank as the 'lender of the last resort'.
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6. (f) Cash Reserve Ratio and Statutory Liquidity Ratio.
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Q.3 Q.3: Answer the following by giving reasons, any two (12 Marks - 6 marks each)

1. (a) State whether the following are promissory notes or note and give reasons: (i) "I acknowledge myself to be indebted to 'B' Rupees One Crore, to be paid on demand, for value received". (ii) "I promise to pay 'B' Rupees Five Lakh and all other sums which shall be due to him". (iii) "I promise to pay 'B' Rupees Five Lakh seven days after my marriage to C".
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2. (b) On 01-01-2012, a customer 'A' keeps a fixed deposit of ₹ 10 Lakh in a bank in his own name for a period of five years and nominates 'B' as his nominee who is not related to him. On 01-02-2013, 'A' dies and 'B' claims the deposit. In the meanwhile, 'C' a close relative of 'A', also claims the deposit as a legal heir of the deceased. Examine the case in the light of the provisions regarding the nomination for payment of depositors' money under the Banking Regulation Act and state how the bank should deal with the claims of both 'B' and 'C'.
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3. (c) State whether the following indorsements are further negotiable, with reasons: (i) "Pay the contents to 'C' only". (ii) "Pay C". (iii) Pay to 'C' or his order.
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Q.4 Q.4: Answer the following, any four (48 Marks - 12 marks each)

1. (a) Discuss the various provisions of the Negotiable Instrument Act relating to noting and protesting.
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2. (b) Discuss the provisions under section 138 of the Negotiable Instrument Act.
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3. (c) Discuss the various powers and functions of the Reserve Bank of India.
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4. (d) Compare and contrast Promissory Note, Bill of exchange and Cheque.
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5. (e) Discuss the provisions of the Banking Regulation Act, 1949 relating to: (i) Licensing of banking companies and their branches (ii) Licensing of co-operative (Urban) banks and their branches.
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6. (f) Although banking is a business, banking companies cannot engage themselves in any form of business. Analyse this statement after taking into consideration the relative provisions of the Banking Regulation Act, 1949.
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