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

Questions asked in this paper

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

1. Q1 What is endorsement of a Negotiable Instrument?
2. Q2 What is 'Noting'? Who does it?
3. Q3 What is 'Bank Rate' as per RBI Act?
4. Q4 What is qualification for appointment as 'Presiding officer' of a Tribunal under Recovery of Debts due to Bank and Financial Institution Act, 1993?
5. Q5 Define Drawer, Drawee and Payee of a Bill of Exchange?
6. Q6 What is 'Legal Proceedings' under Bankers' Books Evidence Act?
7. Q7 Who is 'holder' as defined under Negotiable Instruments Act?
8. Q8 What is a 'Scheduled Bank'?
9. Q9 What is an "ambiguous instrument"?
10. Q10 What are the liabilities of 'issue Department' of Reserve Bank?

SECTION II - Q.2: Write short notes on any four of the following (20 Marks - 5 marks each)

1. Q11 RBI as a Banker and Advisor to the Government.
2. Q12 Holder in Due Course.
3. Q13 Noting and Protesting.
4. Q14 Debt Recovery Tribunal.
5. Q15 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
6. Q16 SEBI.

SECTION III - Q.3: Answer the following by giving reasons, any two (12 Marks - 6 marks each)

1. Q17 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.
2. Q18 '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."
3. Q19 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?

SECTION IV - Q.4: Answer the following, any four (48 Marks - 12 marks each)

1. Q20 What is crossing of a cheque? Explain various provisions relating to crossed cheques in Negotiable Instruments Act.
2. Q21 Compare and contrast Promisory note, Bill of Exchange and a cheque.
3. Q22 Discuss the provisions of RBI Act relating to management of Reserve Bank, composition of the central Board, as terms of office of the directors.
4. Q23 Explain the form of business in which a banking company may engage under the provisions of Banking Regulation Act, 1949.
5. Q24 What is endorsement? Discuss the various types of endorsement under Negotiable Instruments Act.
6. Q25 What is credit control? What are the methods of credit control used by RBI?

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