SMU MBA SUMMER 2016-2017

Dear Students,
SMU MBA SUMMER 2016 Assignments are available. For Booking ,Kindly mail us on
kvsude@gmail.com OR call us to +91 9995105420 or S M S your Email ID us in the
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DRIVE - SUMMER 2015
PROGRAM - MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3)
SUBJECT CODE & NAME - MA0037 & BANKING RELATED LAWS AND PRACTICES
BK ID - B1618
CREDITS - 4
MARKS 60

Q1. Section 42 of the Banking Regulation Act prescribes maintenance of Cash Reserve Ratio in all
scheduled banks. Illustrate. (Maintenance of Cash Reserve Ratio in commercial banks as per
Section 42 of banking Regulation Act) 10
Ans: Maintenance of Cash Reserve: Every banking company which is a scheduled bank is duty-bound
to maintain with RBI a certain cash reserve as per section 42 of the RBI Act. In the case of non-scheduled
banks, section 18 of the
Q2. Explain the essential features of a contract of guarantee. 10
Ans: Essential features of a contract of guarantee:
1. Concurrence Concurrence of all the three parties to it namely, i) surety, ii) the principal creditor, and
iii) the principal creditor.
Primary liability in some person There must be a primary liability in some person other than the
surety. There must be an enforceable liability as defined under Sec 126 of Indian Contract Act. The
primary liability in a
Q3. Explain the rules of endorsement in the light of Negotiable Instruments Act. 10
Ans: Endorsement: Endorsement means the writing of a persons name on the face or back of a
negotiable instrument or on a slip of paper (called alonge) annexed thereto, for the purpose of negotiation
(Sec 15). The person who signs the instrument is called the Endorser. The person to whom the
instrument is endorsed to is called the Endorsee. Sec 15 states that endorsement maybe made by the
holder or the maker

Q4. A banker has to be acquainted with transfer of immovable properties. What are the salient
features of such transactions as per the Transfer of Property Act 1882 ?( Salient features of transfer
of immovable properties as per Transfer of Property Act, 1882) 10
Ans: Transfer of Property: Immovable Chapter II of the Transfer of Property Act of Parties deals with
the transfer of immovable properties by competent persons and the ways to execute the same. Immovable
property normally consists of:
a) Land, buildings, and anything attached to or embedded in the earth
b) Abstract right
Q5. Explain the rules of Set-off and Appropriation applied by commercial banks. 10
Ans: Set-off and Appropriation:
Set off: For exercising the right of set-off, the banker should ensure that the accounts are in the same
name and in the same right. The capacity of the account holder in both or all the accounts must be the
same i.e., the funds available in one account are held by him/her in the same right or capacity in which a
debit balance stands in another account.
Rules governing

Q6. Explain the jurisdiction, power and authority of DRT (debt Recovery Tribunal) and DART
(Debt Appellate Recovery Tribunal). 10
Ans: Jurisdiction, powers and authority of DRT: Whenever the Tribunal or the Appellate Tribunal is
established, its appointed day i.e., date from which they function is declared in the notification, they
exercise jurisdiction, powers and authority to entertain and decide applications or appeals, as the case may
be, from the banks and financial institutions for and about recovery of debts due to them. In order to
restrict the jurisdiction of the Tribunal, the claim for recovery of the debt must be above Rupees ten lakh,
including

SMU MBA SUMMER 2016-2017

Dear Students,
SMU MBA SUMMER 2016 Assignments are available. For Booking ,Kindly mail us on
kvsude@gmail.com OR call us to +91 9995105420 or S M S your Email ID us in the
following Format On +91 9995105420 we will reach back you with in 24H