MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Earn 100

In case of a collection of a bank draft the collecting banker is protected against conversion under _____ section of Negotiable Instruments Act 1881.

50% studentsanswered this correctly

Important Questions on Banking Law and Practice

HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 3

A collecting bank gets protection u/s 131 of NI Act against conversion, only if:

(a) collection of the cheque is in good faith and without negligence

(b) bank collects only on behalf of the customer

(c) bank collects only crossed cheques

(d) collection only of bank cheques

Which of the following combinations is correct?

MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 4
A cheque is in favour of trust. The trustee wants to deposit this cheque in his personal account. The collecting bank:
EASY
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 5
Which among the following is the most appropriate explanation of the term 'conversion'?
MEDIUM
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 6
A customer of your branch, Satyam, deposits a cheque, which he steals from another person named Satyam. Your branch collects this cheque (customer has a defective title) without being aware of the defect:
HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 7
A cheque has been deposited by a customer with his bank for collection. The bank allows an overdraft against the security thereof. The bank becomes:
HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 8
Model Bank is approached by Mr. Rameshwar with a cheque of Rs.3 lakh drawn in his favour, by a public limited company dealing with another branch of the bank. He endorses the cheque and requests that the bank may collect the cheque and issue a fixed deposit for two years today itself:
HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 9
In respect of which of the following, the protection is allowed under the provision of Section 131 of the Negotiable Instrument Act in the context of a collection of cheque by the collecting banker:
HARD
Bihar Cooperative Bank Assistant Mains
IMPORTANT
Hand Book Of Banking Information>Chapter 4 - Banking Law and Practice>TEST YOUR SELF>Q 10
When a bank is collecting a cheque of a newly opened saving bank deposit account as the first entry in the account, then _____.