Article Index




21. Which of the following provisions do not match, in the context of loans by a bank:
a. Banks cannot grant loans on the security of their own shares- Sec 20 of B R Act
b. Banks cannot commit themselves for granting loans on behalf of their directors – Sec20 of BR Act
c. For remitting a loan in the name of a director, RBI permission is required – Sec 20-Aof B R Act
d. RBI can use selective credit control over banks- Sec 36 A B R Act


22. Banks maintain cash reserve with RBI u/s 42 of RBI Act, (a) which is called cash reserve ratio (b) it is maintained at minimum of 3% and maximum of 20% of NDTLs (c) no interest paid by RBI on this amount (d) it is maintained as a fortnightly average balance with RBI.

a. A to d all correct     

b. A, b and c correct     

c. A, b and d correct     

d. A,c and d correct


23. Under the provisions of Right to Information Act, the public Authority means any authority established:

  1. By or under the Constitution of India

  2. By any other law made by the parliament or State legislature

  3. By notification issued or order made by the appropriate Govt.

  4. Any of the above


24. Which of the following statements is not correct in connection with balance sheet of a bank:

a. For public sector it is prepared as per 3rd Schedule of BR Act 

b. For banking companies i.e. private banks, it is prepared as per part I of Schedule VI of Companies Act

c. It is prepared for the last day of the financial year

d.The provisions for preparation of balance sheet are contained in Sec 29 of B R Act.


25. Banks submit various returns to RBI under RBI Act or B R Act. Which of the following is not one such return:
a. Monthly return of liquid assets u/s 24 (3) of B R Act

b. Quarterly return of NPA advances u/s 42 of RBI Act

c. Return of unclaimed deposits u/s 26 of B R Act

d. Fortnightly return on cash reserves u/s 42 of RBI Act


 21 22 23  24  25 


26. As regards the inspection of banks (a) RBI has the authority to inspect the branches of banks u/s 35 of B R Act (b) RBI can inspect the branches of banks u/s 35A of B R Act (c) Central Govt. can direct RBI to inspect the banks.
a. A and b are correct

b. B and c are correct

c. A and c are correct

d. A to c all correct


27. Under Right to Information Act, the information that can be accessed should be held by or under control of:

a. Govt. authority
b. Public authority
c. Public or private authority
d. Govt. authority, public authority or private authority


28. A banking company can be acquired by Central Govt. if one of the following conditions is satisfied (which one is not correct):

a. Bank failed on more than one occasion to comply with RBI direction u/s 21 and 35 of B R Act

b. Bank is being managed in a manner detrimental to interest of depositors

c. Acquisition is essential for safeguarding interest of the depositors

d. Acquisition will benefit the shareholders and govt. both


29. In a contract of sale, (a) the seller transfer property in goods to buyer for a price (b) the seller agrees to transfer the property in goods to the buyer for a price (c) when the goods are transferred from seller to the buyer, the contract becomes a sale.

a. Statements (a) and (c) only are correct

b. Statements (a) and (b) only are correct

c. Statement of (b) and (c) are correct

d. All statements are correct


30. When one or more bank is merged with another bank ot two or more banks decide to merge to form a new company, it is called:

a. Merger
b. Amalgamation

c. Liquidation
d. Winding – up


26 c 27 b 28 d 29 d 30 b

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