General Banking Questions:

1. The banker has a statutory obligation to

a). Honour customer’s cheque
b). Maintain secrecy of his customer’s account
c). Exercise Lien
d). Honour customer’s bill
2. Objectives of KYC is
a). To ensure appropriate customer identification
b). To monitor transactions of suspicious nature
c). To ensure that he/she would not deceive the bank
d). Only a and b
3. A customer’s letter of instructions, without any stamp, in connection with the operations of his account is
known as
a). Power of attorney
b). Probate
c). Letter of Authority
d). Mandate
4. In executing the standing instructions, there exists a relationship of
a). Debtor and Creditor
b). Bailee and Bailor
c). Trustee and beneficiary
d). Agent and Principal
5. Stop payment instruction of a cheque can be given by
a). Any payee of the cheque
b). Only drawer of the cheque
c). Any endorser of the cheque
d). All of the above
6. The paying banker can get protection for a materially altered cheque provided
a). The alteration is not apparent
b). The alteration is immaterial
c). He makes payment in due course
d). a and c together
7. A customer has issued a cheque where the date of which is already passed. Such cheque is called
a). Stale cheque
b). Crossed cheque
c). Post-dated cheque
d). Ante dated cheque
8. The effect of General crossing is that it gives a direction to the
a). Collecting banker
b). Holder
c). Paying banker
d). a and c together
8A. The effect of Account paying crossing is that it gives a direction to the
a). Collecting banker
b). Holder
c). Paying banker
d). a and c together
9. CTR is required for which of the following amount in banks:
a). 5 Lacs
b). 5.50 Lacs
c). 7.00 Lacs
d). 10.00 Lacs
10. The document drawn by a debtor on the creditor agreing to pay a certain amount of money is called
 a). Cheque
b). Promissory note
c). Bill of exchange
d). Demand Draft
11. A cheque that is not crossed is called
a). Uncrossed cheque
b). Order cheque
c). Open cheque
d). Bearer cheque
12. While opening an account in the name of a company, the most important document to be seen is
a). List of employees/directors of the company
b). List of promoters/shareholders of the company
c). Memorandum and Articles of Association of the Company
d). Instructions of the Registrar of Companies
13. How long a bank branch is required to preserve the information of a closed account
a). 1 year
b). 2 years
c). 5 years
d). 10 years
14. While opening an account of a partnership firm, which of the following is essentail
a). Verification of Partnership deed and partnership letter
b). Registration Certificate of Partnership
c). Registration Certificate from Cooperative sub-register
d). None of the above
15. As per Banking companies ( Amendment Act’ 2013) the maximum number of directors of the bank including
independent directors are to be
a). 20 including 2 independent directors
b). 15 including 2 independent directors
c). 20 including 3 independent directors
d). 18 including 3 independent directors
16. As regards Contract Act, 1872 which one of the following is not true
a). Agreements by persons of idiocy are not void
b). An agreement enforceable by law is a contract
c). In every contract there should be free consent
d). A minor can not be a guarantor
17. Layering under money laundering refers to
a). Disguising the origin of initial deposit through multiple transfers
b). Disguising the origin of initial deposit through multiple transactions
c). a and b
d). None of the above
18. In case of opening an account in the name of society which documents to obtained/verified is
a). Copy of Bye Laws
b). Certificate given by the local authorities
c). Certificate given by the RJSC and Firms
d). None of the above
19. Section 85 of Negotiable Instrument Act’ 1881 extends protection to the
a). Collecting Banker
b). Paying Banker
c). Drawer of the cheque
d). Both a and b
20. Scheduled banks are to maintain SLR
a). 13% of total demand & time liabilities
b). 6.5% of total demand & time liabilities
 c). 19%of total demand & time liabilities
d). 19.50% of total demand & time liabilities
21. Lien is a/an --------- of the ceditor to retain possession
a). Obligation
b). Right
c). Interest
d). Protection
22. The best suited deposit for a trading company is
a). Savings Deposit
b). Fixed Deposit
c). Current Deposit
d). Recurring Deposit
23. The rate of interest payable on various deposits is fixed by
a). Head office of each bank
b). Bank and Financial Institutions deposits under Ministry of finance
c). Association of Bankers Bangladesh
d). Bangladesh Bank
24. The most undesirable customer is
a). A minor
b). An unregistered firm
c). A married woman
d). An undischarged bankrupt
25. The document which can be used only for making local payment is
a). A cheque
b). A bankers cheque/PO
c). A bill of exchange
d). A demand draft
26. Ancillary business of a bank implies non-fund business and the income earned from this source includes income
by way of
a). Commission
b). Interest
c). Brokerage
d). Both a and c
27. BFIs are guided by
a). Financial Institutions Act-1993
b). Companies Act-1994
c). The Banking Companies Act-1991
d). Securities Exchange Commission Act-1993
28. What is the meaning of CAR
a). Capital Advance Ratio
b). Capital Asset Ratio
c). Capital Adequacy Ratio
d). Capital and Reserve Ratio
29. For clearing a MICR cheque bank should put
a). General Crossing
b). Special Crossing
c). Either a or b
d). None of the above
30. There are ---- parties involved in a guarantee
a). 2
b). 3
c). 4
d). None of these
31. Which of the following is not legal tender money?
a). Debit Card
b). Hundred Taka currency Note
c). Cheque
d). Both (a) and (c)
32. Monetary policy deals with-
a). Interest rate
b). Money supply
c). Both (a) and (b)
d). None of the above
33. Garnishee order is issued by-
a). Policy order
b). National Board of Revenue
c). Court of Law
d). C.I.D
34. Money laundering refers to-
a). Concealing or disguising the illicit nature, source, location, ownership or control of the proceeds of crime
b). Assisting any person involved in the commission of the predicate offence to evade the legal consequences of
such offence
c). Smuggling money or property earned through legal or illegal means to a foreign country
d). All of these
35. Which of the following person cannot open an account with a bank?
a). An adult
b). Lunatic
c). Solvent
d). Minor with guardian
36. One of the directors of a limited company expired and cheques signed by him are presence for payment,
should be bank pay these cheques?
a). Cannot pay
b). Can pay upon other director’s confirmation
c). Can pay as a routine
d). Payments be stopped by the company
37. Which of the following is the lender’s recourse related law?
a). Contract Act, 1872
b). Bank Company Act, 1991
c). Artha Rin Adalat Ain, 2003
d). All of these
38. The Articles of Association of a Limited Company contains-
a). Objects of the company
b). Internal management of the company
c). Both (a) and (b)
d). None of the above
39. Banker’s Lien is a/an-
a). Hypothecation
b). IGPA for mortgage
c). Implied pledge
d). Bailment of goods
40. Non Banking Financial Institutions are guided by-
a). Financial Institutions Act, 1993
b). Companies Act, 1994
c). The Banking Companies Act, 1991
d). Bangladesh Bank Order, 1972
41. Which of the following create liabilities of a bank?
 a). Savings deposit
b). Fixed deposit
c). Current deposit
d). All of These
42. Which one is not included in financial crimes?
a). Cheque fraud
b). Credit card fraud
c). Over-invoicing for purchasing an office articles
d). Purchase of luxury items
43. When a cheque book is lost by a customer of a bank, which of the following document needs to be executed?
a). Guarantee bond
b). Treasury bong
c). Indemnity bond
d). Security bond
44. Deposits recorded by the depositor but not yet recorded by the Bank means-
a). Restricted deposit
b). Outstanding deposit
c). Deposit in transit
d). All of these
45. A note which is burnt or having sign of burn partially or wholly is called-
a). Altered Note
b). Damp Note
c). Deformed Note
d). Charred Note
46. How many handards are provided by the FATF for AML & CFT?
a). 35
b). 40
c). 38
d). 42
47. The relationship between a banker and a customer is:
 That of a debtor and creditor
 That of a creditor and a debtor
 Primarily that of a debtor and a creditor
 A & b together
48. The banker has a lien on:
 Cheque given for collection
 Cheque given for safe custody
 Cheque left by mistake
 A & b together
49. To constitute a person as a customer:
 There must be frequency of transactions
 There must be a dealing of a banking nature
 There must be some sort of an account
 There must be a single transaction of any nature
50. When banker customer relationship terminated:
 Death
 Insolvency or insanity of a customer
 Closing of the account either on the initiative of the customer or banker.
51. Types of lien:
2 types:
 General lien
 Particular lien
52. Who is a Customer:
 A. The customer must have some sort of an account
B. Single transaction may constitute him as a customer
C. Frequency of transactions is anticipated but not insisted upon
D. The dealing must be a banking nature
53. Relationship between Banker & Customer:
 Deposit accounts……………..Debtor and Creditor
 Advances……………………...Creditor and debtor
 Safe custody deposit…………Bailee and bailor
 Collection of a cheque……… Agent and Principal
 Safe deposit locker…………. Lessor and lessee
54. Why letter of Introduction required at the time of opening a new account?
A. For protection against fraud
B. Protection against inadvertent overdraft
C. Protection against undischarged bankrupt
D. Protection against negligence under sec 131 of N.I Act
E. Protection against giving incorrect information to fellow bankers
55. Contracts by lunatics are
A. Always void
B. Always valid
C. Always voidable
D. At times voidable
56. The best procedure for opening an account in the name of a minor X and the guardian Y would be under the
style
A. X account
B. X account…….. MINOR
C. Y in trust for X
D. Y account
57. The balance of a joint account in the name of X, Y and Z should be paid on the death of X
A. To the legal representative of X
B. To Y and Z
C. To Y or Z
D. To the legal representative of X, Y and Z
58. The following one is a negotiable instrument, negotiable by usage or custom
A. Bill of exchange
B. Accommodation bill
C. Promissory note
D. Share warrant
59. The most important feature of a negotiable instrument is
A. Free transfer (A)
B. Transfer free from defects(B)
C. Right to sue
D. A and B together
60. In the case of a negotiable instrument , the following person generally gets a good title
A. Finder of the lost instrument
B. Holder of a stolen instrument
C. Holder in due course
D. Holder of a forged instrument
61. A cheque bearing a date 31st April, 1992 is presented for payment on 5 th May 1992. As per the practice
A. The cheque should be dishonoured with the remark “ non-existing date”
B. The cheque is returned with the remark” irregularly drawn”.
C. The cheque is dishonoured with the remark” not valid”
D. The cheque can be honored.
62. Crossing a cheque without the knowledge of the drawer is a case of
 A. Material alteration (A)
B. Immaterial alteration (B)
C. Authorized alteration (C)
D. A and c together
63. The following one is not a material alteration
A. Alteration of crossing
B. Alteration of place of payment
C. Conversion of blank endorsement into full endorsement
D. Alteration of the payees name
64. The paying banker can get protection for a materially altered cheque provided
A. The alteration is not apparent (A)
B. The alteration is immaterial (B)
C. He makes payment in due course (C)
D. a and c together
65. A “Not negotiable” crossing is a warning to the
A. Paying banker (A)
B. Collecting banker (B)
C. Holder (C)
D. A and B together
66. A not negotiable crossing restricts ……………. of the cheque
A. Transferability
B. Negotiability
C. Neither transferability nor negotiability
D. Both transferability and negotiability
67. The following one is absolutely essential for special crossing
A. Two parallel transverse lines
B. Words “ & Co.”
C. Words “ Not negotiable”
D. Name of a banker
68. An order cheque can be converted into a bearer cheque by means of
A. Sans recourse endorsement
B. Special endorsement
C. Blank endorsement
D. Sans Frais endorsement
69. Negotiability gives to the transferee………..title of the transferor
A. The same title
B. No title
C. No better title
D. Better title
70. Endorsement signifies that the
A. Endorser has got a good title
B. Endorser signature is genuine
C. Previous endorsements are genuine
D. All of the above
71. One of the following endorsement is not a valid one
A. Partial endorsement
B. Restrictive Endorsement
C. Facultative endorsement
D. Conditional endorsement
72. The liability of the Guarantor is
A. Primary
B. Co-extensive with that of principal debtor
C. Secondary
 D. None of these
73. If a current account is being conducted unsatisfactorily, the banker can
A. Refuse to honour the cheques of that customer (A)
B. Refuse to issue a fresh cheque book (B)
C. Refuse to accept further deposits into that A/c. (C)
D. A and C together
74. The right to set-off is nothing but a
A. Right to sell
B. Right to retain
C. Right to combine
D. Right to appropriate
75. As soon as a banker receives a Garnishee Order absolute, he should
A. Close the A/c of the customer
B. Stop the operation of the A/c
C. Either close or stop the operation of the account depending upon the wording
D. All of the above
76. Bankers undertake the duty of collection of cheques and bills because
A. Sec 131 of the N.I. Act compels them to do so
B. Sec 85 of the N.I. Act compels them to do so
C. They want to do it as a service
D. Collection is a must for a crossed cheque
77. A collecting banker is given protection only when he collects
A. A crossed cheque
B. An order cheque
C. A bearer cheque
D. A mutilated cheque
78. Collecting a cheque payable to the firm to the private account of a partner without enquiry constitutes
A. Gross negligence
B. Negligence under remote grounds
C. Negligence connected with immediate collection of a cheque
D. Contributory negligence
79. A collecting banker is given the statutory protection only when he act as
A. A holder
B. A holder for value
C. A holder in due course
D. An agent
80. When garnishee order is issued by the court attaching the account of a customer, the banker is called .
A. Judgement debtor
B. Judgement creditor
C. Garnishee
D. Garnishor
81. When the amount stated in words and figures differ the banker
A. Can honour the amount in figures
B. Can honour the amount in words
C. Can honour the smaller amount
D. Can dishonor it
82. The best answer for returning a cheque for want of funds in the account is
A. Refer to drawer
B. Not provided for
C. Exceeds Arrangement
D. Not sufficient funds
83. To get statutory protection the paying banker must make
A. Payment to a holder
 B. Payment to a holder in due course
C. Payment in due course
D. Payment to a drawee in case of need
84. Which instruction is good for Banker:
a) Either or survivor
b) Any One Can Operate
c) Joint Operation.
85. Types of Endorsement:
5 Nos. i.e Blank, full, partial, restrictive, conditional
86. The followings are the salient/relevant features of a Fixed Deposit account, except
a) It is repayable on the expiry of the specified period
b) It is a transferable instrument
c) Length of time is fixed
d) Rate of interest is fixed
87. The Executor is appointed by a will. The certified copy (issued by the Court) of the will is known as -
a) Trust Deed
b) Codicil
c) Will Deed
d) Probate
88. The safest form of crossing is :
a) General Crossing
b) Special Crossing
c) Double Crossing
d) A/C Payee Crossing

89. As per the Bank Company Act, 1991, every banking company incorporated in Bangladesh shall transfer to the
reserve fund -
a) At least 20% of current year’s profit before tax
b) At least 5% of demand and time liabilities
c) At least 13% of demand and time liabilities
d) None of the above
90. Payment in due course is the
a) Payment to the last holder of the cheque
b) Payment according to apparent tenor in good faith and without negligence.
c) Payment according to apparent tenor
d) None of the above
91. The person promising to pay money under a promissory note is known as -
a) Drawer
b) Maker
c) Drawee
92. A person who is legally entitled to the possession of the negotiable instrument in his own name and to receive
the amount thereof is known as -
a)Holder in due course
b)Holder
c) Holder for value
d)None of these
93. A minor -
a) cannot draw a negotiable instrument;
b)cannot be a payee of a negotiable instrument;
c) cannot be drawee of a negotiable instrument
94. An order instrument can be made payable to the bearer by making
A. conditional endorsement;
B. full endorsement;
 C. General endorsement
D. None of these

95. Once a bearer instrument always a bearer instrument is true in case of

A. a Cheque only;
B. a bill of exchange only;
C. all negotiable instruments;
D. None of these
96. The title of the endorse will not be better than that of the endorser in case of a cheque is crossed containing
the words -
A. & Co.;
B. Not negotiable;
C. Account Payee;
D. None of these
97. A minor can open and operate an account in his own name if he has at least attained the age of -
A. 12 years;
B. 16 years;
C. 15 years;
D. None of the above
98. The person appointed to operate the account after his death by the deceased himself before his death is called
-
A. Executor;
B. Administrator;
C. Attorney
D. None of the above
99. A joint account can be opened by the banker on receipt of application signed by -
A. majority of the joint account holders;
B. all joint account holders;
C. any joint account holder
D. None of the above
100. A minor cannot -
A. accept a bill;
B. draw a bill; but minor able to draw, endorse a bill.
C. endorse a cheque
D. None of the above
101. Laws governing day-to-day transactions of a bank are contained in:
A. Negotiable Instrument Act-1881.
B. Bank Companies Act-1991.
C. N.I. Act.-1881 and Bank Companies Act.-1991.
102. A Bill of Exchange is payable:
A. Only on Demand or at a fixed time.
B. On Demand or at a fixed or determinable future time.
C. Only at a fixed time or determinable future time
103. Who is the “Payee” of Cheque?
A. The person named in Cheque to whom or to whose order the money is to pay is the "Payee".
B. The Person receiving payment of a cheque is the "Payee".
C. "Payee" of a cheque is the person who presents it before a bank for payment.
104. "Payment in due course" must be:
a) Payment according to apparent tenor and in good faith.
b) Payment according to apparent tenor and in good faith and without negligence.
c) Payment in good faith and without negligence.
105. Fixed Deposit Receipts are:
(A)Assignable
(B)Negotiable
(C)Transferable
106. "Account Payee" crossing signifies that:
(A) A banker should collect it for the payee only.
(B) A banker must collect it through any account simply.
(C) A banker must collect it as a holder for value.
107. Can a stale Cheque be paid?
(A) May be paid after confirmation of the drawer.
(B)May be paid without confirmation of the drawer but after proper inquiry.
(C)Must not be paid under any circumstances.
108. On receipt of notice of customer's insanity would you stop payment of a cheque?
(A)No, because customer signed it before insanity.
(B)Yes, insanity terminates contract.
(C) No, because notice of insanity is not enough to dishonour a cheque.
109. In case of collection of cheques, the collecting banker gets statutory protection for only:
(A) Crossed cheques
(B) Order cheques
(C) All kinds of cheques
110. A collecting banker can collect a cheque either as:
(A) Agent or principal
(B) Trustee or holder for value
(C) Agent or holder for value
111. 'Not negotiable' cheque is:
(A) Neither transferable nor negotiable
(B) Transferable but not negotiable
(C) Transferable but not negotiability is subject to a caution about title
112. Holder in due course of stolen cheque:
(A)Gets perfect title to the cheque
(B) Gets no title because it is stolen
(C)Gets no title because transferor has no title to the cheque
113. When a Locker is given to a customer on hire, what relationship is established between the banker and the
customer?
(A) Bailer and Bailee
(B) Agent and Principal
(C) Lessor and lessee
114. Interest on Savings ale is calculated annually on the basis of
(A) 360 days
(B) 365 days
(C) 364 days
115. In Case of Safe custody of valuables, the Banker enters into a relationship with the Customer. In this case
the Banker is:
(A) Debtor / Trustee.
(B) Pledged /Trustee
(C) Bailee / Trustee.
116.Shapla Traders', a Proprietary concern, approaches you to open a Savings account. Will you open the
account?
a. Yes, if it is for trading purposes.
b. Yes, if it is for non-trading purposes.
c. No, under no circumstances.
117. Where instructions are given by a customer to his banker that a part of his money lying in his account
be forwarded to another bank to meet a bill payable by him and the banker sends the money as directed, the
banker acts as:
a. Trustee
b. Agent
c. Pledgee
118. Post-dated Cheques are not paid by a banker because:
a. Banker may face problems in future
b. It does not constitute 'Payment in due course'
c. It is the practice of the Banks
119. FDR is:
a. Not negotiable
b. Negotiable by endorsement and delivery
c. Negotiable by delivery
120. Should a Customer's cheque be honoured after receiving the death news in the daily newspaper?
a. Yes, newspaper report is not binding on the banker
b. Yes, without formal notice, banker cannot dishonour the cheque
c. No, newspaper reports are treated as constructive notice pertaining to death of a customer.
121. Where the banker pays cash before clearing of the cheque, he becomes
a. Holder in due course
b. Trustee
c. Holder for value

122. Statutory protection has been given to the collecting banker

a. Only for crossed cheques
b. Only for specially crossed cheques
c. Both for open and crossed cheque
123. One of the differences between promissory notes and cheques is:
a. A promissory note contains a promise to pay and a cheque contains an order to pay
b. A promissory note is always payable to bearer and a cheque contains an order to pay
c. A promissory note is always crossed and a cheque may be crossed or uncrossed -----------------------------
124. One of the two joint account holders dies. The account bears a mandate that it may be operated by
either of them. A cheque is presented after the death of one of them:
a. Cheque may be paid since mandate covers
b. Cheque may be paid since it is the practice of the banks
c. No because death terminates the authority in this case
125. The action of a creditor banker in taking into account sums owing by him to the debtor in order to
arrive at the net sum is called:
a. Set off
b. Assignment
c. Lien
126. The Name of the Central Bank of India is:
a. State Bank of India
b. Reserve Bank of India
127. Crossing of Cheque is:
a. A material part of a cheque
b. A material alteration of a cheque
128. Which one of the following is not a Central Bank?
A. Saudi Arabian Monetary Agency
B. State Bank of Pakistan
C. State Bank of India
129. The Current Bank Rate is:
A. 7%
B. 6%
C. 5%
130. You have received a "Garnishee Order" from the Court attaching a client's a/c and at the same time
you have receive a cheque through clearing. What would you do?
(A) You will make payment of the cheque
(B) You will not make payment of cheque
(C) None of the above
131. Which one of the following is a secondary financial instrument?
(A) Loans & Advances
(B) Shares
(C) Deposit
(D) Debentures
132. The followings are the salient features of a Fixed Deposit account, except
(A) It is repayable on the expiry of the specified period
(B) It is a transferable instrument
(C) Length of time is fixed
(D) Rate of interest is fixed
133. Travellers Cheques are issued by
A) Travel Agencies
B) Commercial Banks
C) Tourist Department of Government of Bangladesh
D) None of these
134. When a banker accepts the securities for safe custody, the relationship between a banker and a
customer is that of -
A) a debtor and a creditor
B) Trustee and Beneficiary
C) Principal and Agent
D) None of these
135. A right of appropriation first lies with the -
A) debtor
B) creditor
C) court
D) None of these
136. A Traveller’s Cheque is valid for a period of
a. three months from date of issue;
b. six months from date of issue;
c. three years from date of issue;
d. unlimited time
137. When the customer is operating the locker -
a. the banker should remain with the customer in the safe room;
b. the banker should not remain with the customer in the safe room;
c. no other person should be present in the safe room
d. None of these
138. Merchant banking includes
a. managing issue of shares
b. opening branches in mandis or bazars
c. financing intermediary business;
d. None of these
139. While encashing a traveller’s cheque, the payee is identified by
a. the payee’s passport
b. introduction from an existing customer;
c. introduction letter from the issuing bank
d. signature of the payee on the cheque
140. A promissory note is
a. A conditional promise
b. An unconditional promise
c. Either a or b
141. Demand Draft is:
a. Not a negotiable instruction
b. A quasi negotiable instrument
c. A negotiable instrument
142. Bill of lading is:
a. A negotiable instrument
b. Not a negotiable instrument
c. Not of the above
143. Payment order is:
a. Not a negotiable instrument
b. A negotiable instrument
c. Some negotiable instrument
144. A negotiable instrument :
a. May be conditional
b. Must be unconditional
c. All of the above
145. Interest may be applicable for:
a. Bill of exchange
b. Promissory note
c. Both a and b
146. Bill of exchange may be drawn on:
a. Bank
b. Person or firm
c. All of the above
147. Number of negotiable instrument is:
a. Three
b. Four
c. Five
148. Authentication/confirmation is not required for the following material alteration:
a. Cancellation of the word bearer
b. Crossing of an open cheque
c. All of the above
149. An order cheque is protective than :
a. A crossed cheque
b. A bearer cheque
c. Both a and b
150. For collection of cheque on behalf of the customer collecting banker should put:
a. General crossing
b. Special crossing
c. Either a or b
151. A bill of exchange is always payable:
a. On demand
b. After expiry of certain period
c. Either a or b
152. Payee of the cheque must put signature on the back for payment:
a. Single
b. Twice
c. Thrice
153. A cheque dated in advance is known as :
a. Anti dated
b. Post dated
c. None of the above
154. A cheque after expiry of six months is known as:
a. Antidated
b. Stale
c. Both a and b
155. Who can endorse a cheque:
a. Drawer as a holder
b. Holder
c. Any one of the above
156. A “ Not negotiable” crossing is:
a. Special crossing
b. General crossing
c. Both a and b
157. “A/c. payee” crossed cheque is:
a. Transferable by endorsement
b. Not transferable
c. Transferable in case of need
158. Cancellation of crossing can be done by:
a. Holder of the cheque
b. Payee of the cheque
c. Drawer of the cheque
159. A “ Not Negotiable”crossed cheque is:
a. Not transferable
b. Transferable but nobody will be holder in due course
c. None of the above
160. A collecting banker will get protection:
a. Under section 13 of N.I. Act 1881
b. Under section 31 of N.I. Act 1881
c. Under section 131 of N.I. Act 1881
161. Risk of collecting banker is:
a. Risk of holder for value
b. Risk of conversion
c. Both a and b
162. A cheque crossed “ A/c. Payee” is a
a. Special crossing
b. General crossing
c. Either a or b
163. Stamping is required under stamp Act in:
a. Promissory note
b. Payment order
c. All of the above
164. Bank can pay the proceeds of the cheque to:
a. Payee
b. Holder
c. None of the above
165. A holder can endorse a cheque by putting signature
a. Single
b. Double
c. Either a or b
166. An order cheque can become bearer by:
a. Full endorsement
b. Blank endorsement
c. Conditional endorsement
167. A Negotiable instrument loses its negotiability by
a. Blank endorsement
b. Full endorsement
c. Restricted endorsement
168. A cheque crossed “& company” can be transferable only to:
a. A company
b. Any person or company
c. None of the above
169. Bankers remain responsible for crossed cheque to:
a. Drawer
b. True owner
c. All of the above
170. Promissory Note Contains:
a) Declaration
b) Order
C) Undertaking
d) Acknowledgement
171. Order contained in Bill of Exchange should be:
a) Conditional
b) Unconditional
c) Uncertain
d) Sufficient
172. A cheque is paid:
a) On Demand
b) On acceptance
173. Days of grace is allowed for:
a) At Sight bill
b) On demand Bill
c) After sight Bill
174. What are the negotiable Instruments:
a) Cheque
b) Bill of Exchange
c) Promissory Notes
d) DD
e) All of the above
177. Characteristics of Negotiable instrument:
a) It is transferrable
b) It is negotiable
c) Its value is intrinsic value not face value
d) Unconditional
e) All of the above.
178. A cheque does not become payable even if it is order:
a) Insufficient fund
b) Stopped payment by drawer
c) Death of customer
d) Bankrupted
e) Defective title of holder
f) Misappropriation of fund
g) Garnishee order
h) Court order
i) all of the above
179. Types of Crossing:
a) General
b) Special
c) All of the above
180. Which account does not require any introducer?
a) Individual
b) Limited Company
c) Proprietorship
d) Public Limited Company Account
181.Policy of dormant Account:
SB- Two Year
CD-One Year
182. Which one is called banker’s cheque: Pay Order
183. Validity of Cheques: 6 Months
BB Cheque: 3 Months.
184. Stale Cheque: The cheque which has lost its validity period i.e 6 months
185. Who can cross a cheque:
Anybody.
186 Who can cancel a crossing:
Only the drawer.
187. A banker is a PRIVILEGED debtor
188. Accepting a bill and making it payable at the bank is called DOMICILIATION OF A B/E
189. For willful dishonor of a cheque VINDICTIVE damage is payable by the banker.
190. To claim banking debt AN EXPRESS DEMAND in writing is necessary
191. Honoring of a cheque is a STATUTORY obligation, whereas maintenance of secrecy is a CONTRACTUAL
obligation.
192. NO AGREEMENT is necessary to exercise a lien.
193. The word “customer” signifies a relationship in which DURATION is of no essence.
194. Bank is a SERVICE INDUSTRY
195. A banker’s lien is always a GENERAL LIEN
196. A banker’s lien is generally described as an IMPLIED PLEDGE
197. A letter of Introduction must be obtained from a responsible person before opening an account.
198. Pay in slip is a document used to deposit money into bank account.
199. In case of loss of FDR, duplicate can be issued against the production of AN INDEMNITY BOND.
200. Either or Survivor clause protects a banker from unwanted disputes in the case of a joint account.
201. Money can be withdrawn any number of times in CURRENT ACCOUNT.
202. Current Account ………..NO INTEREST.
203. Savings Account …….. RESTRICTION ON WITHDRAWALS
204. Fixed deposit account………NO WITHDRAWAL TILL MATURITY
205. Recurring deposit………..MONTHLY DEPOSIT OF INSTALLMENTS
206. Joint deposit…………….EITHER OR SURVIVOR
207. A bill drawn and delivered conditionally is called ESCROW bill.
208. Cross firing refers to ACCOMODATION BILL
209. When an endorsed negotiable instrument comes back to the same endorser because of another
endorsement, it is said to be NEGOTIATION BACK
210. Instrument drawn without consideration is not valid except in case of A HOLDER IN DUE COURSE
211.STALE cheque is a dead cheque
212. When a cheque is not payable to the BEARER, the PAYEE must be named
213. A bearer cheque can be transferred by MERE DELIVERY
214. Dishonour of a cheque due to want of funds is an offence under Sec 138 of the N.I. Act
215. BANKERS Cheque is always meant for local payment only.
216. The offence under Sec 138 is deemed to have been committed, if the drawer fails to make payment within 15
days period from the date of the receipt of notice.
217. MATERIAL ALTERATION renders the cheque invalid
218. Conversion of a bearer cheque into an another cheque is a case of IMMATERIAL alteration.
219. An immaterial alteration does not effect the fundamental CHARACTER of a cheque
220. Any material alteration should be confirmed by THE DRAWER by means of his FULL SIGNATURE.
221. An order cheque can be transferred by ENDORSEMENT and delivery
222. The piece of paper attached to a cheque for the purpose of further endorsement is known as ALLONGE
223. In SANS RECOURSE the endorser negatives his liability
224. An endorsement consists of two contracts, namely, contract of transfer and the contract of ASSUMPTION OF
LIABILITY
225. Endorsement to a HOLDER IN DUE COURSE cuts of defences to the instrument
226. A not negotiable crossing restricts the NEGOTIABILITY of the cheque but it does not affect the
TRANSFERABILITY of the cheque
227. A/C. PAYEE crossing is a direction to the collecting banker
228. The cancellation of crossing is called OPENING of crossing
229. DRAWER alone can open a crossing
230. If a cheque is crossed two bankers, it is known as DOUBLE crossing
231. A guarantee is a PROMISE by a third person to the lender.
232. The person who gives the guarantee is called a SURETY OR GUARANTOR
233. The person to whom the guarantee is given is called CREDITOR/BENEFICIARY
234. The person in respect of whose default the guarantee is given is called the PRINCIPAL DEBTOR
235. Parties are involved in guarantee…………… 3
236. Contract of Guarantee are explained in Sec 126 of Contract Act 1872
237. Types of guarantee…….. 2 types
238. Parties are involved in INDEMNITY.................. 2
239. The liability of the principal debtor is PRIMARY
240. When two or more persons stand as sureties for the same debt, they are called CO- SURETIES
241. MONEY GUARANTE is a promise by the banker to pay the money due by the customer to the third party.
242. The right to combine, two or more accounts is called a right of SET-OFF
243. On receipt of notice of death of a customer, the banker should immediately STOP THE OPERATION of the
account.
244. A paying banker can get protection only when he makes PAYMENT IN DUE COURSE
245. DRAWER alone has the right to countermand a cheque
246. Protection cannot be claimed for forged SIGNATURE OF THE DRAWER
247. A fixed deposit is not a negotiable instrument and hence it cannot be assigned to third parties…………. FALSE
248. Simultaneous OD facility can be enjoyed by fixed deposit holders also…………..TRUE
249. In the case of a fixed deposit, the relationship between a banker and a customer is that of a trustee and
beneficiary till the maturity of the deposit…………….FALSE
250. Savings deposit is more suitable to business people……………….FALSE
251. A new account cannot be opened with a cheque………………TRUE
252. A document which contains a forged endorsement is called a forged instrument…… FALSE
253. If a negotiable instrument is complete in all its particulars, it is called inchoate instrument……… FALSE
254. A person who is in possession of a negotiable instrument is called a holder……FALSE
255. The offence under Sec 138 is deemed to have been committed from the date of drawing of a
cheque………..FALSE
256. Cheques payable to fictitious payees are treated as bearer cheque……….TRUE
257. Adraft may be payable either to bearer or order…………..FALSE
258. A postdated cheque can never be honoured………….FALSE
259. An alteration made by an outsider is deemed to be an alteration made by the holder himself………………TRUE
260. A material alteration affects the parties at the time of alteration and not subsequent to such an
alteration…….TRUE
261. Alteration of the date does not amount to a material alteration………..FALSE
262. Endorsement is a must for a bearer cheque also………..FALSE
263. Assignment includes the assumption of liability………..FALSE
264. A bearer cheque will always be treated as a bearer cheque………TRUE
265. Any holder can cross a cheque………..TRUE
266.A/c. payee crossing restricts the transferability of a cheque……………FALSE
267. A general crossing cannot be converted into a special crossing……….FALSE
268. Two parallel transverse lines are not essential for a special crossing……TRUE
269. Double crossing except for the purpose of collection is not valid……….. TRUE
270. Draft is a bill of Exchange …………………True.
271. Whether a cheque requires acceptance…………No
272. The crossing of a cheque “not negotiable” is transferrable……………True.
273. When a cheque is crossed A/P, it shall cease to be negotiable………..True
274. Drawee must be a certain person…………………..True.
275. As per section 103 of the Banking Company Act 1991, there must be only one nominee…………… True.
276. A minor opens an account. What age he will attain majority…… 18 Years.
277. Demand Deposit: Which is payable on demand,
278. Time Deposit: Which is payable at maturity.
279. Allonge: Additional sheet of paper attached to a Negotiable Instrument for endorsement purpose
280. A cheque is a bill of exchange ……………………. True
281. Bank works as an agent of the customer……………. True
282. Anybody can not cross a cheque…………… False
283. Only drawer can cross a cheque…………….False
284. Anybody can cancel crossing……………….False
285. Crossing of cheque is not a material part……..False
286. After cancelling the word bearer in the cheque, requires drawers authentication……………………..False
287. Only drawer can endorse a cheque………………False
288. The statutory obligation of the banker is to honour a cheque……… True
289. Cheque crossed simply by drawing two parallel line cannot be negotiated to anybody…………False
290. A “Not negotiable” crossed cheque cannot be transferred…………False
291. An “A/c. Payee” crossed cheque is not a negotiable instrument…… True
292. Demand draft is a negotiable instrument…………..True
293. Payment order is not a negotiable instrument……….True
294. Bill of leading is a negotiable………..False
295. An order cheque can not be paid over the counter…………False
296. A person who holds the cheque is a holder………..False
297. An order cheque will be bearer by blank endorsement……….True
298. Only ‘Holder’ can endorser a cheque………..True
299. Drawer can endorse a cheque when he is holder………….True
300. Post dated cheques are invalid for payment…………..False
301. Minor can issue and endorse a cheque………….True
302. When cheque is not payable on demand it becomes a bill……True
303. Sight bill may be payable over the counter……………….. False
304. Interest may be applicable in case of “Bill of Exchange”…….True
305. Except drawers signature, anybody can fill up the other material parts of the cheque………………. True
306. A bearer cheque without any name of the payee can be paid over the counter to bearer……….False
307. Demand draft is valid for 6 months…………True
308. Crossing is not necessary in case of “bill of exchange”……..True
309. For collection of bearer cheque, collecting banker is not required to endorse the cheque……………False
310. A collecting banker can get protection under section 131 of N.I.Act-1881……………………….True
311. Banker has contractual obligation to honour a cheque……..False
312. An order cheque is protective than crossed cheque………False
313. Total Section of N.I. Act……………………… 141
314. Total Section of Contract Act 1872………….. 238 under 11 chapters
315. Company’s Act……………………….1994
316. Bank Company’s Act……………………… 1991
317. Types of Company: 3 Types
 Company limited by share i.e Pvt. Ltd. Co. & Public Ltd. Co.
 Company limited Guarantee
 Unlimited Company
318. How number of persons to established a company:
 Pvt. Ltd. Co. (Minimum member 2 & Maximum 50)
 Public Ltd. Co. ( Minimum 7 & Maximum unlimited)
 Partnership ( Minimum 2 & Maximum 20)
319. Types of Contract: 5 Nos.
 Valid
 Voidable
 Void
 Enforceable
 Illegal
320. Punishment of Money Laundering: Minimum 4 years & Maximum 12 Years
 How many Predicate offense are involved in Money Laundering……27
 Total No. of circular issued against Anti Money laundering………. 29
 Total No. of circular issued against BFIU…………….. 20
 Reviewed of KYC-High Risk 1 year, Low 5 years
 Reviewed of TP- Quarterly
 Risk category of KYC-Low Risk-below 14 , High Risk- 14 and above
 Category of KYC-42
 Master Circular of BFIU-19 dt, 17/09/2017
 Total No. of ATM-187
 Total No. of SME Br.-2
 Total No. of Ladies Br.-1
 Authorized capital of UCB-1500
 Paid up capital of UCB-1200
 Latest Interest rate circular against liability product- Instruction 1420
 Latest Interest rate circular against Assets product- Instruction 1428
 Fraught forgery related Circular- Instruction 1071
Amendment of NI Act 1881 in 1994: This amendment has inserted 04(Four) sections from 138 to 141 in the place
of original 138 & 139.
Section-138:
Dishonor of Cheque for Insufficiency of Funds in the account shall be deemed an offence & Shall without
prejudice to any other provision of this act;
-Be punished with imprisonment for a term which may extend to one year, or with fine which may extend to thrice
amount of the cheque , or with both
Conditions:
1. Cheque must be presented to the bank within a period of 06(Six) Month from the date on which it is drawn or
within the periods of its validity, whichever is less.
2. Payee /holder in due course demand for the payment Giving a notice in writing to the drawer within 30(Thirty)
Days of last return date.
3. Drawer of such cheque fails to make payment to the payee within 30(Thirty) days of the receipt of the said
demand notice
Section-141: Cognizance of Offences.
Case should be filed within next 01(One) Month of failure of payment as stated in (3) of section 138

Important Section of N.I. Act:

Memorandum of Association & Articles of Association of a Company Registered under Companies Act – 1994.
Memorandum of Association :
01. The name of the Company
02. Registered office of the company
03. Objectives of the company/Functions of the company
04. Authorized capital of the company
Articles of Association :
01. Company means
02. The Chairperson
03. The Directors
04. The Managing Director
05. The Office
06. Share Certificate
07. Transfer & Transmission of Shares
08. Proceeding of General Meeting
09. Vote of Members
10. Directors
11. Remuneration of Directors
12. Board of Directors Meeting
13. Management of the company
14. Operation of Bank Account
15. Notice
16. Seal
17. Indemnity & Responsibility
18. Winding up

RJSC RELATED
 RJSC & F issued a charge creation certificate within 07(seven) working days.
 Charge should be created within 21 days of the creation of Mortgaged on mortgaged property