Explanation: In case of default in maintenance of CRR requirement on daily basis, which is presently 70% of the total CRR requirement, penal interest will be recovered at the rate of 3% per annum above the bank rate on the amount by which the amount actually maintained falls short of the prescribed minimum on that day.
Explanation: Participatory Notes are instruments issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India - SEBI. They are used outside India for making investments in shares listed in the Indian stock market. That is why they are also called offshore derivative instruments.
Explanation: Dated Government securities are long term securities and carry a fixed or floating coupon (interest rate) which is paid on the face value, payable at fixed time periods (usually half-yearly). The tenor of dated securities can be up to 30 years.
Explanation: Multi Commodity Exchange of India Ltd (MCX) is an independent commodity exchange based in India. MCX offers futures trading in bullion, non-ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, crude palm oil, cotton and others).
Explanation: The Marine Insurance policy covers the loss or damage to property caused due to natural disasters like cyclone, earthquake, lightning, and man-made disasters like theft, violence etc.
Explanation: The calculation of Net Asset Value(NAV) is done daily at the end of the day for each and every fund. This number is calculated up to 4 decimal places and rounded off as per regulations prescribed by Securities and Exchange Board of India (SEBI). So, option(1) is correct.
Explanation: Basel II uses a "three pillars" concept
Explanation: The Basel Committee formulates broad supervisory standards and guidelines and recommends statements of best practice in banking supervision, which are currently known as Basel III Accord. The Basel Accord norms are voluntary in nature.
Explanation: The Indian Banks' Association (IBA) had brought out its 'Bankers' Fair practice' code in June 2004 & all.
Explanation: Section 131 of the Negotiable Instruments Act provides protection to a collecting banker who receives payment of a crossed cheque or draft on behalf of his customers.
Explanation: Bank cannot exercise right of lien on goods received for safe custody, goods held in capacity as a trustee, or as an agent of the customer, SDV, or left in bank by mistake.
Explanation: As per Prevention of Money Laundering Act the banks are required to maintain records of all transactions referred to in Rule 3 contained in Notification No.9/2005 dated 1/7/2005 are required to be maintained by reporting entity for a period of five years from the date of cessation of the transactions with their clients.
Explanation: Section 171 in The Indian Contract Act, 1872: General lien of bankers, factors, wharfingers, attorneys and policy-brokers.
Explanation: Set-off is the right of a debtor to take into account a debt owing to him by a creditor, when claiming a debt due from him to the creditor. In the case of a banker, the right of set-off enables him to adjust a debit balance in the customer's account, with any balance outstanding to his credit in the books of the bank.
Explanation: The Rule of Claytons Law is applicable where the parties have a current account. In such case appropriation impliedly takes place in the order in which receipts and payments take place and are carried into the account.
Explanation: The Garnishee order is an order issued by the Court to garnishee (Bank) whereas the IT attachment is the attachment on assesseeâ€™s credit balance in the bank by Income tax department.
Explanation: District Consumer Disputes Redressal Forum (DCDRF), established by the State Government in each district of the State, it deals with cases valuing of the goods or services paid as consideration does not exceed one crore.
Explanation: Section 131 of the negotiable instruments act protects the banker, provided he has received payment in good faith and without negligence of a cheque crossed generally or specially. This act extends protection to the collecting bank.
Explanation: If a cheque specially crossed to a bank is presented by another bank, not in the capacity of its agent, the paying banker is justified in returning the cheque.
Explanation: Under section 26 of Negotiable Instruments Act, Capacity to make, etc., promissory notes, etc, Every person capable of contracting, according to the law to which he is subject, may bind himself and be bound by the making, drawing, acceptance, endorsement, delivery and negotiation of a promissory note, bill of exchange or cheque. Since a minor may draw, endorse, deliver and negotiate such instruments so as to bind all parties except himself.