1. What is the permeable of the Sarfaesi Act? · 2014. 10. 7. · c) Sarfaesi Act d) None of the above 11.Sarfaesi Act applies to which of the following securities? a) Mortgage securities

1. What is the permeable of the Sarfaesi Act?

a) To regulate securitization and reconstruction of financial assets

b) Enforcement of security interest

c) Both a and b

d) None of these

2. Appellate Tribunal is established under:

a) Sarfaesi Act

b) Recovery of Debts Due to Banks and Financial Institutions Act

c) Indian Contracts Act

d) None of these

3. What do you understand by Asset Reconstruction?

a) It means to reconstruct the assets of the borrower

b) It means acquisition by Reconstruction Company of any financial asset for the purpose ofrealization of such assets

c) None of these

4. What is Central Registry set up under SARFAESI Act?

a) It is the registered office set up by the Central Government

b) It maintains a register to enter particulars relating to securitization of financial assets

c) It maintains a register to enter particulars relating to reconstruction of financial assets

d) It maintains a register to enter particulars relating to creation of security interest

e) All the above

d) None of the above

5. Can the public inspect the register maintained by Central Registrar?

a) Yes on payment of prescribed fee

b) No as it is a confidential document

c) Yes only by the lender or by the borrower

d) None of these

6. What is the main objective of establishing Debt Recovery Tribunals?

a) To deal with cases of recovery of debts below Rs. 10 lacs

b) To deal with cases of recovery of debts below Rs. 10 lacs and above

c) To deal with cases of recovery of debts irrespective of the amount of debt


7. What do you understand by financial asset?

a) It is claim to any debt or receivables whether secured or unsecured

b) It is any debt or receivables secured by mortgage of immovable property

c) It is any right or interest in the security, whether full or part underlying such debt orreceivables

d) It is a mortgage, charge, hypothecation or pledge or movable property

e) It is any beneficial interest in movable or immovable property

f) All the above

g) None of the above

8. What is hypothecation?

a) It is a charge upon any movable property existing or future created by the borrower in favorof secured creditor

b) It is a charge created by the borrower on movable property without delivering its possessionto the creditor

c) It is a charge created by the borrower on movable property in favor of the creditor as securityfor a loan

d) All the above

e) None of the above

9. What do you understand by Non- performing asset of a bank?

a) It is an asset (advance) or account classified by the bank as sub-standard

b) It is an asset or account classified by the bank as doubtful

c) It is an asset or account classified by the bank as loss asset

d) a or b or c


10. Who is an Obligator?

a) He is a person liable to the Originator under a contract to pay a financial asset

b) He is a person liable to the Originator under a contract to discharge an obligation in respectof a financial asset

c) He is a person who is liable to the Originator under a contract to discharge an obligation inrespect of a financial asset whether existing or future, conditional or contingent and includes theborrower

d) All the above


11. Who is the Originator?

a) It means the owner of the financial asset which is acquired by the Securitisation Companyfor securitisation

b) It means the owner of the financial asset which is acquired by the Reconstruction Companyfor asset reconstruction

c) a or b


12. Who is a Qualified Institutional Buyer?

a) It is a financial institution or an insurance company

b) It is a bank, State financial corporation or State Industrial Development Corporation

c) It is a securitization or Reconstruction company or an Asset Management Company makinginvestments on behalf of mutual fund

d) It is Foreign Institutional Investors registered with SEBI

e) All the above

f) None of the above

13. What is the role or a Securitisation or Asset Reconstruction Company?

a) It acquires NPAs of banks and financial institutions by issuing bonds or debentures to them

b) It helps in management of distressed credit in financial system and recovery of bad loans

c) Both a and b


14. How the assets are reconstructed by Asset Reconstruction Company?

a) By taking over the management of the borrower company

b) By infusing more funds to make the asset performing

c) Either a or b


15. How the funds are raised by Securitisation or Asset Reconstruction Company?

a) By issuing security receipts to investors

b) By issuing equity shares to the investors

c) None of the above

16. What is Security Receipt issued by a Securitisation or Asset Reconstruction Company?

a) It is a receipt issued by the company to the investors evidencing acquisition of anundivided right, title or interest in the financial asset involved in Securitisation

b) It is a receipt issued by the company for raising equity capital from the investors


17. Who is a “Sponsor”?

a) He is a person who sponsors the scheme of Securitisation of the Securitisation Company

b) He is a person who holds not less than 10% of the paid – up equity capital of a SecuritisationCompany


18. Who issues the registration certificate for a Securitisation or Reconstruction Company?

a) Registrar of Companies

b) Reserve Bank of India

c) Central Government

d) None of these

19. What should be the minimum networth of a Securitisation or Reconstruction Company?

a) Rs.100 crore

b) Rs.1 crore

c) Rs.2 crore

d) As specified by RBI

e) c or d

f) None of these

20. The percentage of owned funds to be specified by the Reserve Bank should not exceed––––– of total financial assets acquired or to be acquired by the Securitisation or AssetReconstruction Company.a) 15%

b) 25%

c) 10%

d) None of these

21. The scheme and guidelines formulated by RBI contemplates a structure for the purpose ofundertaking securitisation or reconstruction activity by the Securitisation and ReconstructionCompany. What is it?

a) The company can formulate separate schemes for acquisition of financial assets

b) Create Trusts for each scheme and maintain separate and distinct records

c) The Company can act as a trustee for such Trusts created by it and mange the assets heldin trust

d) All the above


22. What is the period within which the Securitisation or Asset Reconstruction Company canmake an appeal to the Central Government against the cancellation of its certificate ofregistration by the Reserve Bank?

a) 15 days from the date of communication of the order

b) 30 days from the date of communication of the order

c) 60 days from the date of communication of the order


23. What is Securitisation as per Sarfaesi Act?

a) It is acquisition of financial assets

b) It is raising of funds by issue of security receipts

c) Both and b

d) None of these

24. Can a Securitisation Company acquire the assets of an RRB?

a) No since RRBs are kept outside the definition of bank under Sarfaesi Act

b) Yes since RRBs are also banking institutions

c) None of these

25. How the financial assets of bank are acquired by a Securitisation or AssetReconstruction Company?

a) By issue of a debenture or bond or any other security in the nature of debenture agreed upon

b) By entering into an agreement with such bank for transfer of such financial asset to suchcompany

c) The Securitisation or Asset reconstruction Company can acquire financial asset of a bankwithout execution of any deed of assignment in its favour by the concerned bank

d) Either a or b or c


Key

1.c 2.b 3.b 4.e 5.a 6.b 7.f 8.d 9.d 10.c 11.c 12.e 13.c

14.c 15.a 16.a 17.b 18.b 19.a 20.a 21.d 22.b 23.c 24.a 25.d

1. Why debentures are issued by a Securitisation or Asset Reconstruction Company to banks?

a) It is issued for the purpose of payment of consideration to be paid to a bank for acquisition offinancial asset from them

b) It is issued for the purpose of raising funds for the activities of the Securitisation or AssetReconstruction company

c) None of these

2. When the financial assets of a bank are acquired by a Securitisation or AssetReconstruction company, the bank has to issue a notice to :

a) The obligator i.e., the borrower

b) The Registrar of Companies with whom the charge is registered

c) To the Central Registrar

d) a,b and c

e) a or b or c


3. On receipt of a notice of acquisition of financial assets of a bank by the Securitisation orAsset Reconstruction Company, what the borrower should do?

a) He should make payment to the bank concerned which will constitute a full discharge of allhis liability

b) He should make payment to the Securitisation or Asset Reconstruction Company which willconstitute a full discharge of all his liability

c) Either a or b


4. Can the bank take forcible possession of secured assets of a borrower in case of hisdefault, Under Sarfaesi Act?

a) Yes

b) No

c) None of these

5. What are the other important functions of a Securitisation or Asset ReconstructionCompany?

a) To act an agent of a bank for recovering its dues from the borrower

b) To act as receiver if appointed by a Court of Tribunal

c) Both a and b

d) Either a or b

e) None of these

6. What is empowered to determine policy and issue directions to all or any Securitisation orAsset Reconstruction Company?

a) Central Government

b) RBI

c) SEBI

d) None of these

7. What is the period within which a Securitisation or Asset Reconstruction Company whichhas acquired the financial assets of a bank, has to formulate a plan for realization of assets soacquired?

a) 6 months

b) 18 months

c) 12 months

d) None of these

8. Can a Securitisation company raise funds by way of deposits from the public?

a) Yes

b) No

c) None of these

9. Can a Securitisation company which has acquired the financial assets of a bank disclosethe name of that bank in its balance sheet?

a) Yes

b) No

c) None of these

10. Movable assets in possession of the bank cannot be sold without intervention of the Courtas per:

a) Provisions of Indian Contract Act,1872

b) Cannot be sold without Court’s permission

c) Sarfaesi Act


11.Sarfaesi Act applies to which of the following securities?

a) Mortgage securities

b) Any movable or immovable security charged to a bank or financial institution

c) Where security interests are created for repayment of financial assistance given by abank/financial institution

d) Owned by a NPA borrower but not charged to the bank

e) None of these

12. Can the mortgaged property be sold by a bank or financial institution without Courtintervention?

a) No since Sarfaesi Act has enabling provisions

b) Yes, Court intervention is required as per the provisions of Transfer Property Act

c) Yes since Contract Act has no such provision about Court intervention

d) Both a and b


13. Secured Creditors under the Sarfaesi Act cover:

a) Any bank/ financial institution /any consortium of group of banks or financial institutions inwhose favour security interest is created by the borrower for due repayment

b) Debenture Trustees appointed by a bank/ financial institution /securitisation company/reconstruction company

c) Any trustee holding securities on behalf of a bank or financial institution

d) All the above


14. Can the provision of Sarfaesi Act be invoked for proceeding against the charged property?

a) Yes provided there is a default in meeting the instalments due

b) Yes when RBI instruct them to proceed against the borrower

c) Yes when the banks is of the opinion that it is necessary to recover the loan due

d) Yes when there is default in repayment of the loan and the bank has classified it as NPAe) All the above


15. What is the capital adequacy to be maintained by a Securitisation /Asset ReconstructionCompany?

a) 15% of total assets acquired or capital of Rs.100 crore whichever is less

b) Rs. 200 crore

c) Any amount at the option of the company


16. What are the objectives of an Asset Reconstruction Company?

a) Conversion of a debt into a negotiable security

b) Removal of NPA from the balance sheet of banks

c) Purchase of Banks’ NPA

d) All the above


17. If the borrower on receipt of the notice under Section 13(2) from the secured creditormakes any representation or raises any objection, the secured creditor has to consider therepresentation or the objection and reply to him within ––––– to the borrower

a) 7 days

b) 15 days

c) 21 days

d) 30 days

e) None of these

18. Sarfaesi Act does not apply to the following conditions:

a) Where the amount due is less than 20% of the Principal amount and interest

b) Security interest in any aircraft or vessel

c) Where the loan amount outstanding does not exceed Rs.1 lac

d) All the above


19. When the management of business of a borrower is taken over by a secured creditor, canthe shareholders appoint any person as a director in such company?

a) Yes

b) No

c) None of these

20. While serving a notice on the borrower for repayment of a loan what is the period allowedby the bank for discharging his liability as per Sarfaesi Act?

a) 30 days

b) 90days

c) 60 days

d) None of these

21. According to Section 13(2) of Sarfaesi Act, what is the period within which the bank has to communicate to the borrower about the objections raised by him for the notice served onhim by the bank for repayment of loan?

a) One week

b) Two weeks

c) Three weeks

d) None of these

22. What is the recourse available to the bank when the borrower fails to discharge hisliability after receiving a notice from the bank and after the mandate period of 60 days areover?

a) Take possession of the secured assets of the borrower

b) Take over the management of the business of the borrower

c) Appointment of a manger to manage the secured assets taken over

d) To recover the money sufficient to liquidate the debt from the person who has taken overthe assets of the borrower

e) All the above


23. What the banker should do if the sale proceeds of financial asset are insufficient toliquidate the dues of the banker?

a) He may file an application with the Debts Recovery Tribunal

b) He may file an application with a competent Court

c) Either a or b

d) Both a and b

e) None of these

24. To whom the secured creditor has to apply for taking possession of secured assets of theborrower?

a) Chief Metropolitan Magistrate

b) District Magistrate

c) Either a or b

d) None of these

25. When the management of business of a borrower is taken over by a secured creditor inwhich type of news paper a notice has to be given to the public about the take over?

a) In an English new paper

b) In a news paper published in an Indian language in the place where the principal office of the

borrower is situated

c) Either a or b

d) Both a and b


Key

1.a 2.d 3.b 4.a 5.d 6.b 7.c 8.b 9.a 10.a 11.c 12.a 13.d

14.d 15.a 16.d 17.a 18.d 19.b 20.c 21.a 22.e 23.c 24.c 25.d

1. Can any compensation be paid to the directors for loss of their office on account to takeover of management of business of the borrower by a secured creditor?

a) No

b) Yes

c) None of these

2. What is the period within which the borrower can seek an application to the DRT followingthe measures taken by the secured creditor for recovery of the debts?

a) 60days

b) 30 days

c) 45 days

d) None of these

3. Is the Debt Recovery Tribunal empowered to restore the secured assets of the borrowerif the measures taken by the secured creditor are not in accordance with the provisions ofSarfaesi Act?

a) No

b) Yes

c) None of these

4. What is the period within which the DRT has to dispose of an application filed by theborrower against the measures taken by the secured creditor?

a) 60 days

b) 30 days

c) 45 days

d) None of these

5. What is the period within which the aggrieved party has to make an application to theAppellate Tribunal against the order of the Debt Recovery Tribunal?

a) 60 days

b) 45 days

c) 30 days

d) None of these

6. Can the Appellate Tribunal reduce the amount of claim to be deposited by the borrowerbefore making an application to it as against the mandatory amount of 50 percent of the claimamount?

a) Yes it can be reduced to 25% of the claim amount

b) No as it has no power to reduce the claim amount from 50%


7. What is the period within which the borrower residing in the State of Jammu and Kashmircan file an appeal to the High Court against the order of the District judge under Sarfaesi Act?

a) 60 days

b) 30 days

c) 15 days

d) None of these

8. The pecuniary jurisdiction of DRT is Rs. 10 lacs and above as per Debts Due to Banks andFinancial Institutions Act, 1993.But is there is any pecuniary limit for making an appeal to DRTunder the Sarfaesi Act?

a) Yes Rs.10 lakhs and above as provided in Debts Due to banks and FinancialInstitutions Act, 1993

b) No even cases below Rs. 10 lakhs can be handled by DRT as per Sarfaesi Act

c) None of these

9. Can the particulars of securitisation, reconstruction or security interest entered in theCentral Register be inspected by any person?

a) Yes on payment of prescribed fee

b) No as it is a confidential record

c) Yes only by the borrower or the lender

d) None of these

10. After receiving the notice from the bank, the borrower cannot without prior consent of theBank:

a) Transfer the secured assets mentioned in the notice

b) sell the secured assets mentioned in the notice

c) Lease the secured assets mentioned in the notice

d) Any of the above


11. The service of notice by the bank can be effected by:

a) Registered AD

b) Speed Post

c) Courier

d) fax

e) Any of these

12. If the amount mentioned in the notice is not paid by the borrower within the stipulatedperiod, the bank take the following action:

a) Take possession of the secured asset

b) Take over the management of secured asset

c) Appoint a person to manage the asset acquired

d) Any of the above


13. As per RBI guidelines promoters of companies declared as willful defaulters cannot getfunds from Banks/Financial Institutions for any new venture for a period of :

a) 2 years

b) 3 years

c) 4 years

d) 5 years

e) None of these

14. In Mardia Chemicals Ltd case, what is that Supreme Court held unconstitutional andinvalid?

a) Entire provisions of Sarfaesi Act,2002

b) Creation of security interest

c) Formation of Reconstruction Companies

d) Borrower to pay 75% of the amount as pre – condition for preferring appeal


15. When can a bank proceed against the borrower under Sarfaesi Act?

a) Whenever the bank feels it necessary

b) When RBI inspector allows it

c) When there is default in repayment

d) When the bank declares the account as NPA due to default in repayment


16. The Authorized Officer of the bank after having taken possession of the movable assets,can sell them by adopting the following method:

a) Obtaining quotations

b) Inviting tenders from public

c) Holding public auction

d) By private treaty

e) All of these

17. The bank /Financial Institution can affect the sale of the assets taken possession by it aftergiving –––– notice.

a) 30 days

b) 60 days

c) 90 days

d) None of these

18. Persons /entities eligible under Foreign Direct Investment (FDI) route other than ForeignInstitutional Investors (FIIs) can invest in the equity capital of Asset Reconstruction Companiesregistered with RBI up to ––– percent of the paid – up equity capital of the ARC

a) 49

b) 51

c) 74

d) None of these

19. FIIs registered with SEBI can invest in Security Receipts issued by AssetReconstruction Companies registered with RBI up to –––––– percent of each tranche of

scheme of security receipts. The investment of a single FII in each tranche of scheme ofsecurity receipts should not exceed ––––– percent of the issue.

a) 49;10

b) 51; 49

c) 74; 26

d) None of these

20. The Central Government is authorized to set up a Central Registry for the purpose ofregistration of which of the following transactions?

a) Securitisation and reconstruction of financial assets

b) creation of security interest under the SARFAESI ACTc) Both a and b

d) None of these

21. Who appoints the Central Registrar for the purpose of registration contemplated under theAct?


b) State Government

c) None of these

22. Records maintained by the Central Registrar at the Head Office comprises of:

a) Securitisation of financial assets

b) Reconstruction of financial assets

c) Creation of Security interests

d) All of these

e) None of these

23. Under the SARFAESI Act filing of details of transactions of Securitisation, reconstructionand creation of security interest should be done with:

a) The Central Registrar

b) Central Government

c) None of these

24. What is the period within which the Securitisation or Asset Reconstruction Company orthe secured creditor as the case may be has, to give intimation to the Central Registrarregarding payment made by the borrower in full?

a) 60 days

b) 30 days

c) 45 days

d) None of these

25. If the borrower gives an intimation to the Central Registrar about the payment made byhim, then the Registrar may send a notice to the Securitisation Company or the AssetReconstruction company or the secured creditor to show cause within –––– days specified inthe notice as to why the payment made by the borrower should not be recorded in the CentralRegister.

a) 10 days

b) 15 days

c) 14 days

d) None of these

Key

1.a 2.c 3.b 4.a 5.c 6.a 7.b 8.b 9.a 10.d 11.e 12.d 13.d

14.d 15.d 16.e 17.a 18.a 19.a 20.c 21.a 22.d 23.a 24.b 25.c

1. What is the penalty for not complying with the directions of the Reserve Bank of Indiawhich is statutorily empowered to issue directions to the Securitisation company orReconstruction Company?

a) Not exceeding Rs. 5 lacs

b) Not exceeding Rs. 10 lacs

c) None of these

2. What is the penalty that can be levied for a person who contravenes the provisions ofSarfaesi Act or any rules made there under?

a) Imprisonment for a term which may extend to one year

b) Fine

c) a or b or both


3. Which of the following persons have the powers to try any offence punishable underSection 30 of Sarfaesi Act?

a) Metropolitan Magistrate

b) First Class Judicial Magistrate

c) Either a or b


4. The SARFAESI Act gives powers to the banks and Financial institutions to enforcesecurities given to them for loans without the intervention of courts. Does the Act also cover thesecurities in possession of the secured creditors other than banks and financial institutions?

a) Yes

b) No

c) None of these

5. Does the SARFAESI Act have an overriding effect on other Act?

a) Yes

b) No

c) None of these

6. Sarfaesi Act not applicable to which of the following?

a) A lien on any goods, money or security given under the Indian Contract Act or Sale of GoodsAct

b) Pledge of movable goods

c) Any conditional sale or lease in which no security interest has been created

d) All of these

e) None of these

7. Can a suit be initiated against any secured creditor or any of his officers exercising any ofthe rights in good faith under Sarfaesi Act?

a) Yes

b) No

c) None of these

8. When an offence is committed under Sarfaesi Act by a company, whether a personresponsible for conduct of the business of the company at the time when the offence wascommitted, is responsible for such an offence?

a) Yes

b) No

c) None of these

9. Does the Civil Court has a jurisdiction to entertain any suit or proceeding in respect of anymatter which a DRT or the Appellate Tribunal is empowered under the Act?

a) Yes

b) No

c) None of these

10. Does the provisions of Law of Limitation Act applicable to enable the secured creditor totake measured under the Sarfaesi Act?

a) No

b) Yes

c) None of these

11. Who can make rules for carrying out the provisions of the Sarfaesi Act?

a) RBI


c) SEBI

d) None of these

12. When was the first Ombudsman Scheme introduced by RBI?a) In 2002

b) In 2006

c) In 1995

d) None of these

13. What is the main objective of the Ombudsman Scheme?a) To resolve complaints relating to banking services and settlement of such complaints

b) To resolve disputes between a bank and its customers as well as amongst banks throughprocess of conciliation, mediation and arbitration

c) both a and b


14. Does the Ombudsman Scheme extend to whole of India?

a) Yes

b) No


15. What do you understand by ‘Award ‘passed by Ombudsman?

a) It is an order passed by Ombudsman after hearing the case

b) It is an award given to the customer for having won the case

c) None of these

16. Who appoints Ombudsman?


b) Reserve Bank of India

c) None of these

17. Who fixes the location of the office of Ombudsman?

a) Central Govt.

b) State Govt.

c) RBI

d) None of these

18. Which of the following persons are appointed as Ombudsman by RBI?

a) Any eminent person having experience in the legal, banking, financial services, publicadministration may be appointed as Ombudsman

b) Joint Secretary of Govt. Of India or Director of a public sector bank can be appointed asOmbudsman

c) Only officers of Reserve Bank in the rank of Chief General Manger or General Manger will beappointed as Ombudsman

19. What is the period of appointment of Banking Ombudsman?

a) Up to 3 years

b) Up to 5 years

c) Up to 1 year

20. When was the Ombudsman Scheme last revised by RBI?

a) The Ombudsman Scheme was revised in 2002 and again in 2006

b) The Ombudsman Scheme was last revised in 2002 only

c) The Ombudsman Scheme was not revised at all after it was introduced in 1995


21. Under which section and Act RBI have powers to appoint an Ombudsman?

a) S.35A of RBI Act

b) S.35A of BR Act

c) None of these

22. Ombudsman Scheme 2006 is applicable to which of the following banks?a) Only to Commercial banks

b) Only to Commercial banks and Scheduled Primary Co- operative Banks

c) Only to Commercial banks, Scheduled Primary Co-operative banks and Regional RuralBanks


23. Who is the Appellate Authority appointed under Banking Ombudsman Scheme?a) Governor of RBI

b) Deputy Governor of RBI

c) Chairman of IBA

24. Under the Banking Ombudsman Scheme, every bank has to appoint a nodal officers to bestationed at its:a) Corporate Office

b) Zonal or Regional Office

c) Branch Office

25. The expenses of the Ombudsman Office is borne by:

a) Ombudsman Office itself

b) The banks in the area of operation of the Ombudsman Office

c) RBI

d) None of these

Key

1.a 2.c 3.c 4.b 5.a 6.d 7.b 8.a 9.b 10.b 11.b 12.c 13.c

14.a 15.a 16.b 17.c 18.c 19.a 20.a 21.b 22.c 23.b 24.b 25.c

1. The banking Ombudsman is a :

a) Judicial Authority

b) Quasi Judicial Authority

c) None of these

2. Which of the following grievances against which a customer can file a complaint withOmbudsman?

a) Delay in collection of cheques and non- payment of cheques/bills /drafts

b) Failure to issue or delay in issue of drafts/Banker’s cheques/Pay orders

c) Deficiency in opening of bank accounts, service charges, service rendered by direct sellingagents (DSAs), Code of conduct of banks

d) Credit card operations of banks, Delay in receipt of remittances, non-acceptance of small-denomination notes/ coins, delay in disbursement of pensions etc

e) All the above


3. Can sanctioning of loans and advances be covered under the Ombudsman Scheme?

a) No

b) Yes

c) None of these

4. Which among the following is the procedure for filing a complaint with Ombudsman?

a) The customer can straight away file a complaint if he is not satisfied with any of the servicesrendered by the bank

b) A complaint can be filed with the Ombudsman after a complaint is filed with the bank and thebank has not responded to the complaint for a period of one year

c) Only after a written complaint has been filed with the bank and no satisfactory reply has beengiven by the bank or the bank has not responded to the complaint at all


5. What is the period within which a complaint has to be filed with the Ombudsman?

a) Within two years after the cause of action has arisen

b) Within one year after the cause of action has arisen


6. When does the cause of action arises for the customer to lodge a complaint with BankingOmbudsman?

a) It arises after the expiry of two months period after the customer has made a writtencomplaint to the bank and the bank has not replied to the complaint or the reply is notsatisfactory

b) It arises after the expiry of one month period after the customer has made a writtencomplaint to the bank and the bank has not replied to the complaint or the reply is notsatisfactory

c) Either a or b


7. Is there any compensation available under the Ombudsman Scheme?

a) Yes up to Rs.10 lac

b) Yes up to Rs. 20 lac

c) None of these

8. Within what period the complaint has to send the letter of acceptance of the award to theOmbudsman?

a) Within 30 days

b) Within 10 days

c) Within 15 days

9. Within what period the bank has to comply with the award passed by Ombudsman?

a) Within 30 days of the date of receipt of the letter of acceptance and intimation of thiscompliance to the Ombudsman

b) Within15 days of the date of receipt of the letter of acceptance and intimation of thiscompliance to the Ombudsman


10. What is the period within which an appeal can be made to the Appellate Authority by theaggrieved party?

a) Within 45 days from the date of receipt of the award

b) Within 30 days from the date of receipt of the award

c) Either a or b


11. Can an appeal be filed with the Appellate Authority for rejection of complaint by theOmbudsman?a) Such a facility is not available

b) Ombudsman’s prior permission is required for filling an appeal against the rejection of thecomplaint

c) Yes it can filed with the Appellate Authority within 30 days of rejection of the complaint by theOmbudsman


12. Can a bank make an appeal to the Appellate Authority against the order passed by theBanking Ombudsman?a) Yes, only after obtaining a sanction from the Chairman of the bank

b) No, since the banks are not permitted to make an appeal against the order of the BankingOmbudsman

c) Yes, only after obtaining a sanction from the Reserve Bank


13. Can the Banking Ombudsman allow extension of time for making an appeal if there is adelay on the part of the aggrieved party?a) Extension of time cannot be allowed

b) He can allow time for a further period not exceeding 30 days to make an appeal

c) Yes, but only after obtaining Reserve Bank’s prior permission


14. In respect of loans and advances, which of the following types of complaints can beallowed by the Banking Ombudsman?

a) Non- observance of Reserve Bank directives on interest rates

b) Delays in sanction, disbursement or non- observance of prescribed time schedule fordisposal of loan applications

c) Non- acceptance of application for loans without furnishing valid reasons

d) All the above


15. Can an advocate represent the aggrieved party for filing a complaint with the BankingOmbudsman?

a) Yes

b) No

c) None of these

16. In the case of complaints relating to credit card operations of banks, which of the followingis true as regards Ombudsman?

a) Compensation is allowed up to Rs. 10 lac

b) Compensation is allowed up to Rs. 1 lac

c) Compensation amount will be determined after taking into account the loss of time,harassment, mental anguish suffered by the complainant up to a max of Rs. 1 lac

d) Either b or c


17. Can the Banking Ombudsman act as an Arbitrator?

a) Yes when both the disputing parties come together and amicably settle the dispute and onreference, the Ombudsman can act an arbitrator

b) No since the complainant has filed a complaint only because the deficiency of servicerendered by the bank


18. What is the procedure for arbitration under Banking Ombudsman Scheme when areference of a dispute is made for arbitration?

a) The secretariat of Ombudsman shall call upon the claimant to submit his statement of claimalong with the list of documents and list of witnesses, within the period stipulated

b) The secretariat of Ombudsman shall send a copy of the claim and the documents annexedthereto to the opposite party as mentioned in the claim, for his reply

c) Both a and b


19. Do the arbitral proceedings have any reference to any other Act?

a) Yes, to the Arbitration and Conciliation Act 1996

b) Yes, to the Civil Procedure Code Act

c) Yes, to the Criminal Procedure Code


20. Can an Arbitral Award be made by the Ombudsman and if so when?

a) No such award are passed by the Ombudsman

b) Yes after both the disputing parties reach a settlement


21. What is the maximum period within which an arbitral award will be passed by theOmbudsman?

a) Within 6 months after the disputing parties reach settlement

b) Within 6 months after the reference is made to the Ombudsman

c) Within 6 months from the date of the first hearing


22. When was the Recovery of Debts Due to Banks and Financial Institutions Act passed?

a) It was passed in the year 1993

b) It was passed in the year 1991

c) It was passed in the year 1981


23. Is the DRT Act applicable throughout the country?

a) Yes it is applicable throughout the country including Jammu and Kashmir

b) Yes it is applicable throughout the country excluding Jammu and Kashmir


24. Is there any appeal system under the DRT Act?

a) No such appeal system is there and the order passed by Debt Recovery Tribunal is final

b) Yes appeal can be made to the High Court

c) Yes an appeal system is there and an appeal can be made to the Appellate Tribunalestablished for the purpose


25. The provisions of DRT Act is applicable to debts of:

a) Rs.10 lac and above

b) Above Rs.10 lac


Key

1.b 2.e 3.a 4.c 5.b 6.b 7.a 8.c 9.a 10.b 11.c 12.a 13.b

14.d 15.b 16.c 17.a 18.c 19.a 20.b 21.c 22.a 23.b 24.c 25.a

1. What is the definition of the’ Debt’ as per DRT Act?

a) any liability inclusive of interest, whether secured

b) Any liability inclusive of interest, whether unsecured

c) Any liability payable under a decree or order of any Civil Court of any arbitration award

d) Any liability payable under a mortgage and subsisting on and legally recoverable on the dateof application

e) All the above


2. Which of the following banks are covered under DRT Act?

a) Commercial Banks

b) Regional Rural Banks

c) Co – operative Banks

d) Both a and b

e) a, b, and c

f) None of these

3. What is the purpose of establishing Appellate Tribunals?

a) To enable the aggrieved party to make an appeal against the order of the Debt RecoveryTribunals

b) It is an additional mechanism to enable the borrower to file a case against banks


4. Who appoints the Recovery Office under DRT Act?

a) RBI

b) Central Govt.

c) State Govt.

d) None of these

5. Who establishes the Debt Recovery Tribunals?

a) Central Govt.

b) State Govt.

c) RBI

d) None of these

6. How many members are there in the recovery Tribunals?

a) A Tribunal will consist of 3 members appointed by Central Govt.

b) A Tribunal will consist of only one person as Presiding Officer.

c) A Tribunal will consist of any number of persons as decided a by Central Govt.


7. Can the Presiding Officer of one Tribunal discharge the functions of another Tribunal?

a) No

b) Yes

c) None of these

8. Which among the following persons can be appointed as Presiding Officer of a Tribunal?

a) High Court Judge

d) Supreme Court Judge

c) District Judge

9. Who can authorize establishment of Debt Recovery Tribunals?

a) RBI


c) None of these

10. What is the composition of a Tribunal?

a) There will be only one person called the Presiding Officer appointed by the CentralGovernment

b) There will be three persons of which one will be the Presiding Officer


11. What is the term of office of the Presiding Officer of a Tribunal?

a) 3 years

b) 5 years

c) 2 years

d) None of these

12. How many officials will be there in an Appellate Tribunals?

a) Two persons out of which one will be Chairperson and the other will be recovery officer

b) Three persons out of which one will be the Chairperson

c) Only one person who will be called as Chairperson and is appointed by Central Government


13. What is the jurisdiction of the Debt Recovery Tribunal as per the Act?

a) After the establishment of a DRT, all cases already filed or to be filed by banks and financialinstitutions for recovery of debts for amount of Rs.10 lac and above will come under thejurisdiction of these tribunals

b) After the establishment of a DRT, all cases already filed or to be filed by banks and financialinstitutions for recovery of debts for amount of above Rs. 10 lac will come under the jurisdictionof these


14. Under whose jurisdiction can a case are filed by banks under DRT Act?

a) It can be filed at the place where the bank branch has sanctioned the loan

b) It can be filed at the place where the defendant or one of the defendants resides or carrieson business


15. When an application is already filed with the tribunal by a bank, whether another bankcan join the applicant bank if it has a claim to recover its debt?

a) Yes, provided the final order has not been passed by the Tribunal

b) No, since the applicant bank has already filed an application with the Tribunal and theproceeding would have started


16. Can the Supreme Court or High Court try cases falling under the jurisdiction of theTribunal?

a) Yes

b) No

c) None of these

17. Can a civil suit which has already been filed by a bank in a Civil Court be transferred to theDebt Recovery Tribunal?

a) No such cases will have to continue with the concerned Civil Court

b) Yes provided the amount of suit is Rs. 10 lac and above


18. When a case is transferred from a Civil Court to the DRT, is any additional fee to be paid?

a) No

b) Yes

c) None of these

19. Can the DRT pass an interim order?

a) Yes

b) No

c) None of these

20. Who can go on appeal to the appellate Tribunal?

a) Only the applicant who has filed the case

b) Only the respondent against whom a case was filed

c) Either a or b


21. What is the period within which an appeal has to be made to Appellate Tribunal?

a) Within a period 30 days of the receipt (or deemed date of receipt) of the order of the Tribunal

b) Within a period 45 days of the receipt (or deemed date of receipt) of the order of the Tribunal


22. What is the maximum period within which an appeal has to be disposed off by theAppellate Tribunal?

a) Within a period of 6 months from the date of the appeal

b) Within a period of 3 months from the date of the appeal


23. What is the percentage of the amount to be deposited by the person from whom money isdue before making an appeal to the Appellate Tribunal?

a) 50% of the amount due

b) 75% of the amount due

c) 100% of the amount due


24. Appellate Tribunals are established in which of the following places?

a) Mumbai

b) Chennai

c) Kolkata

d) All of these

e) None of these

25. A Tribunal may make an interim order by way of:

a) Injunction

b) Stay

c) Attachment

d) a or b or c

e) None of these

Key

1.e 2.d 3.a 4.b 5.a 6.b 7.b 8.c 9.b 10.a 11.b 12.c 13.a

14.b 15.a 16.a 17.b 18.a 19.a 20.c 21.b 22.b 23.b 24.d 25.d

1. What is the punishment given for disobeying the order of the Tribunal by the borrower?

a) Attachment of the property of the borrower who has disobeyed

b) To imprison the borrower in a civil prison for a term of 3 months

c) Either a or b


2. Who will recover the debts due from the defendant after an order is passed by theTribunal?

a) The Tribunal after passing the order will issue a Recovery Certificate asking the RecoveryOfficer to proceed for recovering the debt

b) The Tribunal after passing the order will issue a Recovery Certificate asking the applicantbank to recover the debt


3. Which among the following can be resorted to, by the Recovery Officer for recovery of thedebt after the order is passed by the Tribunal?

a) Attachment and sale of the movable or immovable properties

b) Arresting of the defendant and his detention in the prison

c) Appointing a receiver to manage the movable/immovable properties of the defendant

d) All the above


4. Can the Presiding Officer withdraw the Recovery Certificate issued by him for correction ofany clerical or arithmetical mistake in the certificate?

a) Yes

b) No


5. Can the Presiding Officer grant time for payment of the amount after issue of RecoveryCertificate?

a) Yes

b) No


6. What are the other means of recovery of debts under DRT Act?

a) The Recovery Officer may require any person from whom the amount is due to thedefendant, to deduct the amount of the debt due to the defendant and make payment to him

b) The Recovery Officer has powers of sale of moveable goods by distraint and recover thedues (as per IT act)

c) All the above


7. Can any person aggrieved by the order of the recovery Officer appeal to the Tribunal?

a) Yes within 30 days of the order

b) Yes within 15 days of the order

c) No appeal will be allowed

d) None of these

8. Which of the following come under ‘Bankers books’ as per the Bankers ‘Books EvidenceAct 1891?

a) Legers

b) Cash books

c) Account books

d) All of these

e) None of these

9. Can the Courts accept certified copies of bank’s books as an evidence under the Banker’sBooks Evidence Act?

a) Yes

b) No

c) None of these

10. Will a certified copy of any entry in a banker’s book in all legal proceedings be received asprima facie evidence of the existence of such entry?

a) Yes

b) No

c) None of these

11. What is the period within which the order of the Court has to be complied with by the bankfor production of certified copies of the banker’s books?

a) At least 7 working days

b) At least 3 working days

c) None of these

12. In which of the following cases, an officer of the bank cannot be compelled to produce anybanker’s book to the Court, the contents of which can be proved under this Act by productionof certified copies?

a) In any legal proceeding to which the bank is not a party

b) In any legal proceeding to which the bank is a party

c) None of these

13. Can the Court order the bank to allow a person to inspect and take copies of any entries ina banker’s book for the purpose of Court proceedings?

a) Yes

b) No

c) None of these

14. Which of the following persons can organize Lok Adalats?

a) State Authority

b) District Authority

c) Supreme Court Legal Services committee

d) High Court Legal Services Committee

e) Taluk Legal Services Committee

f) All of these

g) None of these

15. What will be the jurisdiction of Lok Adalats?

a) To determine and arrive a compromise or settlement between the parties to a dispute

b) To determine and refer the matter to a Court

c) None of these

16. Which of the following disputes can be brought under the jurisdiction of Lok Adalats?

a) Dispute should be a case pending before any court

b) Matter which is falling within the jurisdiction but not pending before any Court

c) Either a or b

d) None of these

17. What type of offences under law cannot be brought under the purview of the Lok Adalat?

a) Offences which are punishable under any law

b) Offences which are compoundable under any law

c) None of these

18. The monetary ceiling for settlement of disputes under Lok Adalats is:

a) Rs.20 lacs

b) Rs. 10 lacs

c) Rs. 25 lacs

d) Any amount

19. What is the main objective of enacting of Consumer Protection Act (COPRA)

a) To protect the interest of the consumer

b) To redress the consumer dispute

c) To provide a speedy and simple Redressal machinery

d) All of the above


20. Does the Consumer Protection Act extend to whole of India?

a) Yes including Jammu and Kashmir

b) Yes excluding Jammu and Kashmir

c) None of these

21. Who is a consumer according to Protection Act extends to whole of India?

a) A consumer of goods

b) Consumer of services

c) Both a and b

d) None of these

22. Can the word consumer include anybody who buys goods and uses the same forcommercial purpose as per the COPRA?

a) Yes

b) No

c) None of these

23. Why Consumer Councils are established under (COPRA)?

a) To promote and protect the rights of the consumers

b) Consumer councils will not deal directly with the consumer complaints

c) They are established only to create an awareness among the consumers by education

d) All the above


24. How many Councils are there under COPRA?

a) Central Council

b) State Council

c) District Council

d) All of these

e) None of these

25. Who are the members of Central Consumer Protection Council?

a) The Minister in charge of consumers affairs

b) Such number of members as prescribed by the Central Govt.

c) Both a and b

d) None of these

Key

1.c 2.a 3.d 4.a 5.a 6.c 7.a 8.d 9.a 10.a 11.b 12.a 13.a

14.f 15.a 16.c 17.b 18.a 19.d 20.b 21.c 22.b 23.d 24.d 25.c

1. How many meetings are to be held by the Central Council in a year?

a) At least once

b) At least twice

c) At least four times

d) None of these

2. How many meetings are to be held by the State Council in a year?

a) Minimum two

b) Minimum one

c) Minimum four

d) None of these

3. Who is the Chairman of the District Consumer Protection Council?

a) District Magistrate

b) District Collector

c) Minister in charge of consumer affairs

d) None of these

4. How many Consumer Disputes Redressal Forums are there under COPRA?

a) District Forum

b) State Commission

c) National Commission

d) All of these

e) None of these

5. Which among the following statements are true as per COPRA?

a) All the Forums are headed by Judicial officials

b) All the Forums are headed by eminent persons from society

c) All the Forums are headed by officials of RBI


6. Which among the following statements are true from the point of view of pecuniaryjurisdiction of each Forum under COPRA?

a) District Forum can entertain claim for compensation up to Rs. 20 lacs

b) District Forum can entertain claim for compensation above Rs. 20 lac and up to Rs. 1 crore

c) National Commission can entertain claim for compensation above Rs. 1 crore

d) All the above


7. How many lady members must be there in the Forums/Commission?

a) One lady member

b) Two lady member

c) None of these

8. What is the period within which a complaint has to be made to the Forums?

a) Within 1 year from the date on which the cause of action has arisen

b) Within 2 years from the date on which the cause of action has arisen


9. When does a cause of action arise for filing a complaint with the Forum?

a) After the expiry of one month of sending a written complaint to the concerned bank fordeficiency of service and no response is received or the reply is not satisfactory

b) After the expiry of 15 days of sending a written complaint to the concerned bank fordeficiency of service and no response is received or the reply is not satisfactory


10. Within what period an appeal has to be made against the order of each Forum?

a) Within 15 days from the date of the order

b) Within 30 days from the date of the order


11. What is the designation of the person heading a District Forum?

a) President

b) Chairman

c) None of these

12. Who will appoint the President of a District Forum?

a) District Collector

b) State Govt.

c) Central Govt.

d) None of these

13. What is the term of office of members of District Forum?

a) 5 years

b) 65 years

c) 5 years or 65 years whichever is earlier

d) None of these

14. Can the State Government be a complainant of a District Forum?

a) Yes

b) No

c) None of these

15. What is the period within which the complaint has to be decided by the District Forum?

a) Within 3 months where there is no analysis or testing is required

b) Within 5 months where there is analysis or testing is required

c) Within 4 months where there is no analysis or testing is required

d) Either a or b

e) None of these

16. Can an advocate represent the consumer in a District Forum?

a) Yes

b) No

c) None of these

17. Can the proceedings before a District Forum be considered as a judicial proceedings asper Indian Penal Code, 1860?

a) No, since it is not considered as a Civil Court

b) Yes, as it is not considered as a Civil Court

c) None of these

18. What is the minimum Quorum required for conducting the proceedings of District Forum?

a) President and two members

b) President Only

c) President and at least one member

d) None of these

19. What is the amount to be deposited by the appellant while making an appeal to the StateCommission against the order of the District Forum?

a)50%of the amount or Rs.25000/- whichever is less

b)50%of the amount or Rs.35000/- whichever is less

c)50%of the amount or Rs.50,000/- whichever is less


20. The National Commission is headed by:

a) High Court Judge

b) Supreme Court Judge

c) Either a or b

d) None of these

21. An appeal can be made against the order of the National Commission to :

a) High Court

b) Supreme Court

c) District Court

d) None of these

22. Limitation Act, 1963 is enacted for the purpose of:

a) Enabling banks and financial institutions to recover their money lent to the borrowers withinthe limitation period through legal proceedings

b) Enabling banks and financial institutions to recover their money lent to the borrower at anytime if they fail to repay the loan without legal proceedings


23. The Limitation Act came into force from:

a) 5/10/1963

b) 1/1/1964

c) 1/1/1963

d) None of these

24. Period of Limitation means:

a) Period prescribed for any suit

b) Period prescribed for any appeal

c) Both a and b

d) None of these

25. When the bank wants to file suit as the document are getting expired, the Court is closed.What the bank should do?

a) The bank can file the suit on the day when the Court re-opens

b) The bank loses the right to file a suit as the documents are time barred when the Courtre-opens

c) None of these

Key

1.a 2.a 3.b 4.d 5.a 6.d 7.a 9.a 10.b 11.a 12.b 13.c 14.a

15.d 16.a 17.b 18.c 19.a 20.b 21.b 22.a 23.b 24.c 25.a

1. The loan document is getting time barred within the next two months. What can the bank doto extend the period of limitation?

a) File a suit in a Court of Law before the document become time barred

b) Obtain an acknowledgement of debt from the borrower to extend the period of limitationfrom that date

c) Either a or b

d) None of these

2. In which of the following cases can the bank calculate a fresh period of Limitation?

a) When the borrower makes part payment towards the loan account

b) When the borrower executes a revival letter in favour of the bank

c) Both a and b


3. A demand loan was sanctioned by the bank. The limitation period starts from the date of:

a) Execution of loan documents

b) The loan account becoming NPA

c) Default on the party of the borrower in repayment

d) None of these

4. In the case of term deposit, the limitation period starts from:

a) The date of deposit,

b) The date of demand

c) The date of maturity

d) None of these

5. In the case of SB account, the limitation period starts from:

a) The date of opening of the account

b) The date of demand by the customer

c) None of these

6. Period of limitation:

a) Is always in relation to a document which entitles the beneficiary to take action in a Court ofLaw

b) Means the period of limitation prescribed for any suit, appeal or application by the schedule

c) Both a and b


7. Taxation of income is provided in:

a) Income Tax Act, 1961

b) Fringe Benefit Act

c) Value Added Tax

d) None of these

8. The Income Tax Act envisages taxation of income of an assesse on the basis of:

a) His residence

b) Place of source of income

c) Both a and b

d) None of these

9. Which of the following constitute income:

a) Profits and gains

b) Dividend

b) Interest

d) All of these

e) None of these

10. Income earned by a person in the ––––– year is taxed in the Assessment year:

a) Current

b) Previous

c) None of these

11. According to Section 6 of Income Tax Act, what is the definition of a resident?

a) He is one who stays in India 182 days or more in the previous year

b) He is one who stays in India 60 days or more in the previous year or 365 days or more inthe preceding four years prior to the previous year

c) Either a or b

d) None of these

12. Can the income earned by a person anywhere in the world is taxable in India?

a) No since that income was not earned in India

b) Yes provided the person has stayed in India for 182 days or more in the previous year

c) None of these

13. Which of the following bank transactions required PAN number?

a) For opening a banks account

b) For purchase of draft for Rs. 50,000/- and above

c) For opening of term deposit for Rs. 50,000/- and above

d) All of the above


14. In which of the following transactions, the IT Authorities can call for information from thebankers under section 133(6) of IT Act?

a) Cash transactions of Rs. 1, 00,000/- and above

b) Assets declared for loans/overdrafts of Rs.50 lacs and above

c) Both a and b


15. Which of the following constitutes heads of income as per IT Act?

a) Salaries

b) Income from other sources

c) Profits and gains from business

d) Capital gains

e) Income from other sources

f) All of these

g) None of the above

16. In which of the following cases a company has to file its IT Returns?

a) Only when the company earns profit

b) Only when the company makes loss

c) Either a or b


17. What is the due date for filing IT Returns in the case of a company?

a) 31st July

b) 30th September

c) 30th June

d) None of these

18. Out of which of the following income, the assesse is liable for payment of advance tax?

a) Capital gains

b) Winnings from lotteries

c) winnings from Cross word puzzle

d) All of these

e) None of these

19. The advance tax is payable where the amount of such tax is Rs. ––––– or more.

a) 10,000

b) 20,000

c) 1,00,000

d) None of these

20. Persons responsible for making payment of income covered by the scheme of taxdeduction are provided in Section –––– to ––––– of IT Act.

a) 208 to 211

b) 192 to 195

c) 133 to 136

d) None of these

21. Tax deduction at source on payment to non-residents is provided in:

a) Section 208 of IT Act

b) Section 209 of IT Act

c) Section 195 of IT Act

d) None of these

22. The TDS deducted by the bank should be deposited into the Government Account within:

a) One week from the end of the month in which tax is deducted at source

b) Fifteen days from the end of the month in which tax is deducted at source

c) One month from the end of the month in which tax is deducted at source


23. TDS is recovered when the interest payable on term deposit exceeds:

a) Rs. 5000/-

b) Rs. 10,000/-

c) Rs.20,000/-

d) None of these

24. When TDS is deducted on the interest payable on term deposit, the bank has to issueFrom ––––– to the customer

a) 16

b) 16A

c) 15H

d) 15G

e) None of these

25. If a senior citizen depositor does not want the bank to deduct TDS on the interest payableon the term deposit, he has to submit Form –––––– to the banker

a) 15G

b) 16

c) 15H

d) None of these

Key

1.c 2.c 3.a 4.b 5.b 6.c 7.a 8.c 9.d 10.b 11.c 12.b 13.d

14.c 15.f 16.c 17.b 18.d 19.a 20.b 21.c 22.a 23.b 24.b 25.c

Documents

1. What is the permeable of the Sarfaesi Act? · 2014. 10. 7. · c) Sarfaesi Act d) None of the above 11.Sarfaesi Act applies to which of the following securities? a) Mortgage securities