RRB Officer Scale-2 & RRB PO FA Classes
@06:00 PM Class 06
NI Act, 1881 &
BR Act, 1949
TOPICWISE MCQS DISCUSSION
Q.1. How many total sections are there in the Negotiable Instruments Act, 1881?
a. 147 b. 143 c. 149 d. 145
Q.2. Which section of NI Act, 1881 deals with definition & examples of Negotiable Instrument?
a. 4 b. 18 c. 7 d. 13
Negotiable Instruments Act, 1881
• A “Negotiable instrument" means a promissory note, bill of exchange or cheque payable either to order or to bearer.
• Transfer of Ownership
• Total Section : 147
• Definition and example : mentioned in section 13
Q.3. Which section of Negotiable Instruments Act deals with Promissory Note?
a. 4 b. 5 c. 6 d. 7
Q.4. What does Section 6 deals within the Negotiable Instruments Act?
a. Bill of Exchange b. Cheque
c. Certificate of Deposit d. T-Bill
Q.5 How many parties are involved in Promissory Note?
a. 2 b. 3 c. 4 d. 5
Q.6 How many parties are involved in Bill of Exchange?
a. 2 b. 3 c. 4 d. 5
Q.7. In which section bill of exchange is dealt with in Negotiable Instruments Act?
a. 5 b. 7 c. 9 d. 11
Q.8. Which section of Negotiable Instruments Act deals with Dishonouring of Cheque?
a. 92 b. 138 c. 135 d. 88
Q.9. Which section of Negotiable Instruments Act deals with Dishonour by non-payment?
a. 124 b. 135 c. 92 d. 77
Q.10. Drawee is defined in which section of the Negotiable Instruments Act?
a. 7 b. 8 c. 9 d. 10
Q.11. Which section of Negotiable Instruments Act deals with Cheque crossed generally?
a. 123 b. 125 c. 126 d. 124
Q.12. Which section of Negotiable Instruments Act deals with Cheque crossed specially?
a. 123/ 125 b. 124/ 126 c. 125/127 d. 127/129
Q.13. Which section of Negotiable Instruments Act deals with Cheque crossing after issue?
a. 125 b. 124 c. 127 d. 129
Q.14. An order in writing directing a person to pay a sum of money to a specified person is called _____.
a. Bill of Exchange b. Promissory Note c. T- Bill
d. None of these
Q.15. Which of the following cheque cannot be endorsed?
a. Bearer Cheque b. Order Cheque
c. Crossed cheque (only crossed line) d. Crossed Cheque with A/c Payee
Q.16. A ___ cheque is one which cannot be honoured because the reasonable period is expired
a. Self
b. Crossed c. Stale
d. Post dated
Q.17. A ______ cheque is a cheque which is drawn today but contains a future date for payment.
a. Self
b. Crossed c. Stale
d. Post dated
Q.19. Which of the following is the reason for Bounce of Cheque?
a. Stale
b. Post dated c. Mutilated
d. Insufficient balance
Q.20. Which section of Negotiable Instruments Act deals with Presumptions as to Negotiable Instruments?
a. 128 b. 118 c. 148 d. 158
Promissory Note: Section 4
• A "promissory note" is an instrument in writing (not being a bank- note or a currency-note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to the order of, a certain person, or to the bearer of the instrument.
• Written
• Stamp
• Promise
• 2 Parties : Drawer & Payee
• E.g : Certificate of Deposit, Commercial Paper, T- Bill
Bill of Exchange: Section 5
• “Bill of exchange" is an instrument in writing containing an
unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.
• Written
• Stamp
• Order
• 3 Parties : Drawer, Drawee & Payee
• E.g: Cheque
Cheque : Section 6
• A "cheque" is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand.
• Dishonour of Cheque : Section 138
• Cheque crossed generally : Section 123
• Cheque crossed specially : Section 124/ 126
• Crossing after issue : Section 125
Types of Cheque :
1. Open Cheque
a. Bearer Cheque b. Order Cheque a. Bearer Cheque:
b. Order Cheque:
• A cheque which is paid to a named person with the words 'or order' after the payee's name, showing that he or she can endorse it
and pass it to someone else if desired
2. Crossed Cheque:
• A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check. This double-line notation signifies that the check may
only be deposited directly into a bank account
• Only crossed line : can be endorsed
• Crossed cheque with A/c Payee : No Endorsement
3. Self Cheque :
4. Stale Cheque:
• A stale cheque is one which cannot be honoured because the reasonable period is expired
• Validity : 3 months
5. Post Dated Cheque:
• a post-dated cheque is a cheque which is drawn today but contains a future date for payment.
6. Anti Dated Cheque:
• A cheque on which you write a date that is earlier than the actual date
7. Mutilated Cheque:
• Not Cleared by banks .
• Torn, wrong sign etc.
• Bounce of Cheque: Incase of Insufficient Balance
• Dishonour of Cheque: Incase of Stale or Mutilated Cheque Endorsement : Section 15
Presumption as to Negotiable Instruments : Section 118 Drawer & Drawee : Section 7
Dishonour by Non Payment : Section 92
Q.21. When did the Banking Regulation Act come into effect?
a. 6 Mar 1949 b. 10 Mar 1949 c. 16 Mar 1949 d. 26 Mar 1949
Q.22 The Banking Regulation Act was initially passed by what name?
a. Banking Firms 1949
b. Banking Companies Act 1949 c. Banking Firms 1948
d. None of these
Q.23 Which section of BR Act 1949 define the term banking.
a. 4(a) b. 5 (b) c. 6(c) d. 7(d)
Q.25 Which of the following section defines minimum paid-up capital
& reserves.
a. 11 b. 15 c. 18 d. 23
Q.26 A director of banking company, other than its chairman or whole time director cannot hold office continuously for a period exceeding ___ years.
a. 2 b. 3 c. 4 d. 5
Q.27 ____ defines restrictions as to payment of dividend.
a. 12 b. 13 c. 14 d. 15
Q.28 Which section of BR Act 1949 defines forms of business in which banking companies may engage.
a. 2 b. 6 c. 9 d. 11
Q.29 According to sec 17, every banking company has to transfer ___
of Net Profit before dividend to reserve & surplus.
a. 10%
b. 15%
c. 20%
d. 25%
Q.30 Section ___ , every banking company (not being a Scheduled Bank) shall maintain Cash Reserve with the RBI
a. 19 b. 18 c. 21 d. 24
Q.31 Which of the following section defines the use of words ‘bank’ ,
‘banker’ & ‘banking’ or ‘banking company’?
a. 2 b. 3 c. 7 d. 9
Q.32 According to section ___ , bank cannot hold immovable property not over 7 years.
a. 9 b. 13 c. 17 d. 3
Q.33 According to section ___, banking company cannot grant any loans or advances on the security of its own shares.
a. 21 b. 20 c. 25 d. 26
Q.34. Section ___ prohibit directly or indirectly trading of goods &
services.
a. 15 b. 8 c. 13 d. 4
Q.35 Which of the following section of BR Act 1949, RBI has power to control advances by banking companies?
a. 25 b. 21 c. 22 d. 23
Q.36 Which of the following section deals with licensing of banking companies.
a. 22 b. 23 c. 24 d. 25
Q.37 Which of the following defines the maintenance of SLR a. 22
b. 23 c. 24 d. 25
Q.37 Which of the following section defines return of unclaimed deposits
a. 25 b. 28 c. 26 d. 27
