Explanation: Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a government. The shares of these banks are listed on stock exchanges. There are a total of 21 PSBs in India. Since SBI, Nationalized Banks, Regional Rural Banks are parts of the public sector banks.
Explanation: No company shall commence or carry on the banking business without obtaining a certificate of registration from the Bank.
Explanation: Section 11 in BR ACT,1949: Requirement as to minimum paid-up capital and reserves, if it has places of business in more than one State and no office in Mumbai or Kolkata, five lakhs of rupees.
Explanation: RBI is empowered under section 36AA of BR Act to remove any chairman, director, chief executive officers or other officer or employee of a banking company. For this purpose, the bank has to be satisfied that it is necessary to do so.
Explanation: Cash reserve Ratio (CRR) is the amount of Cash that the banks have to keep with RBI. They have to maintain a certain percentage of their deposits in the form of cash and can use only the remaining amount for lending/investment.
Explanation: The undertaking of an acquired bank may vest in the central government or in any company or corporation as directed by the Reserve Bank:
Explanation: Regional Rural Banks are local level banking organizations operating in different States of India. They have been created with a view to serve primarily the rural areas of India with basic banking and financial services. However, RRBs may have branches set up for urban operations and their area of operation may include urban areas too. The share capital of RRBs is held by State Govt.
Explanation: Section 131 of the Negotiable Instruments Act provides protection to a collecting banker who receives payment of a crossed cheque on behalf of his customers.
Explanation: Section 131 of the Negotiable Instruments Act affords statutory protection in such a case where the customer's title to the cheque which the banker has collected has been questioned.
Explanation: Every partner is an agent of the firm and his other partners for the purpose of the business of the partnership, and the acts of every partner who does any act for carrying on in the usual way business of the kind carried on by the firm of which he is a member bind the firm and his partners, unless the partner so acting has in fact no authority to act for the firm in the particular matter, and the person with whom he is dealing either knows that he has no authority or does not know or believe him to be a partner.
Explanation: A contract where one party promises to save the other from any loss caused to him by the conduct of promisor himself or any other person is called contract of indemnity. In case of indemnity contract the indemnifier, after compensating indemnity holders loss, cannot recover that amount from any person. But in contract of guarantee, if surety makes payment to creditor, he (surety) can recover that amount from principal debtor.
Explanation: Irrevocable credits may not be modified or canceled by the buyer. The buyer's issuing bank must follow through with payment to the seller so long as the seller complies with the conditions listed in the letter of credit. Changes in the credit must be approved by both the buyer and the seller. If the documentary letter of credit does not mention whether it is revocable or irrevocable, it automatically defaults to irrevocable.
Explanation: A straight bill of landing is generally accepted to be one that makes the goods deliverable to a named consignee and either contains no words importing transferability or contains words negating transferability (such as "non-transferable").
Explanation: In a contract of deferred payment guarantee, the bank executes a guarantee on behalf of the buyer to the sellers bank. On the strength of such guarantee, the sellers banker discounts the sellers bills that may be drawn on buyer and pays the seller.
Explanation: A debenture is debt instrument issued by company under its seal acknowledging is debt and containing provision with the regard to repayment of principal and interest.
Explanation: Mortgage by deposit of title deed, is not required to be created by way of a deed and does not require registeration.
Explanation: An equitable mortgage in which the lender is secured by taking possession of all the original title documents of the property that serves as security for the mortgage. It gives the mortgagee the right to foreclose on the property, sell it, or appoint a receiver in case of non-payment. In this type of mortgage, there is substantial saving of payment of stamp duty.
Explanation: Hypothecation is a way of creating a charge against the security of movable assets, which is much similar to pledge.
Explanation: Unsecured debentures are debentures that are not supported by a collateral security. No specific assets will be set aside against unsecured debentures. It does not require any registration because it is not secured by fixed and floating charge.
Explanation: Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial muscle to evaluate and invest in the capital markets.