Paper III

Law of Banking and Negotiable Instruments — question papers

Syllabus topics

Question papers

April/May 2022 · 17 questions
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February 2021 · 16 questions
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January 2020 · 16 questions
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January 2019 · 16 questions
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May/June 2019 · 16 questions
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January/February 2018 · 16 questions
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January/February 2017 · 16 questions
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May/June 2016 · 16 questions
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December 2015 · 16 questions
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December (5-YDC) 2015 · 16 questions
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Questions by frequency and marks

Same question across years counts once; frequency is how many papers it appears in.

Marks Question Years Frequency
6 Banker's Lien. 2022, 2020, 2018, 2016, 2015 5×
6 Travellers' Cheques. 2021, 2018, 2017, 2015 5×
6 Bank Guarantees. 2021, 2020, 2019, 2018 4×
6 Letters of Credit. 2022, 2021, 2015 4×
6 Collecting Banker. 2020, 2019, 2017 3×
6 Fiduciary relationship. 2019, 2017, 2015 3×
6 Promissory Notes. 2022, 2018, 2016 3×
15 Explain the concept of banking and discuss the objectives and salient features of the Banking Regulation Act. 2021, 2020, 2017 3×
15 Explain the general relationship between banker and customer in India. 2019, 2017, 2015 3×
6 Account Payee. 2021, 2016 2×
6 Banker's Set-off. 2019, 2017 2×
6 Bill of Exchange. 2017, 2015 2×
6 Blank Endorsement. 2019, 2017 2×
6 Crossed Cheque. 2019, 2015 2×
6 Customer. 2022, 2019 2×
6 Dividend Warrants. 2021, 2018 2×
6 Forgery. 2021, 2015 2×
6 Garnishee Order. 2022, 2019 2×
6 Payment in Due Course. 2022, 2018 2×
10 The holder of a promissory note for Rs. 10,000 writes on it "pay Rs. 6,000" and endorses the note. Examine the consequences of such an endorsement. 2019, 2017 2×
15 Explain the meaning of the term 'Banker's Lien'. State the general precautions which a banker should take while granting loans and advances. 2019, 2017 2×
15 Explain the salient features of Negotiable Instruments in India. 2015 2×
6 Banker's role as a debtor in the debtor-creditor relationship. 2021 1×
6 Banker as Trustee. 2020 1×
6 Bankers' Bank. 2020 1×
6 Bankers Clearing House. 2016 1×
6 Bankers Draft. 2019 1×
6 Bankers Liability. 2019 1×
6 E-Banking. 2019 1×
6 Banking Regulation Act. 2018 1×
6 Cheque. 2015 1×
6 Conditional Endorsement. 2016 1×
6 Credit Control. 2022 1×
6 Current Account. 2022 1×
6 Days of Grace. 2017 1×
6 Demand Draft. 2020 1×
6 Government Securities. 2015 1×
6 Group Banking. 2019 1×
6 IDBI. 2019 1×
6 Inchoate Instrument. 2020 1×
6 Indigenous Bankers. 2016 1×
6 Issuing Notes. 2015 1×
6 Liquidity. 2016 1×
6 Meaning of Bank's Customer. 2018 1×
6 Meaning of Banking. 2020 1×
6 Mixed Banking. 2017 1×
6 Mortgage. 2022 1×
6 Negotiable Instrument. 2016 1×
6 Overdraft. 2019 1×
6 Pledge. 2015 1×
6 Postal Order. 2019 1×
6 Pro-Note. 2019 1×
6 Reserve Bank of India. 2015 1×
6 Secured Advances. 2021 1×
6 Set-off. 2015 1×
6 Trustee. 2015 1×
10 'D' accepted a bill of exchange drawn in London. An endorsee, in arrangement with the drawer, altered the place of drawing from "London" to America. Is 'D' liable on the bill? . 2017 1×
10 A, at the point of a pistol, forces 'B' to issue a bearer cheque in the name of 'A'. A afterwards hands over the cheque to 'C' who takes it in good faith and for valuable consideration. Is 'C' a holder in due course? 2016 1×
10 A, being indebted to B, gives B a cheque which B later presents in due time; payment is refused because of the bank's failure. What are B's rights? 2019 1×
10 A bill is endorsed to Mr. Ratnakar on order. Another person of the same name gets the bill and presents it. The acceptor pays him. Is the acceptor liable to the real Ratnakar? 2015 1×
10 A bill payable to "X or Order" was stolen. Y forged X's endorsement and endorsed it to 'Z', who takes it for value and in good faith. Shall Z acquire good title to it? 2017 1×
10 A cheque is drawn "pay Suraj" without the words "or order" or "bearer". Is the cheque payable only to Suraj in person, or is it transferable by him? 2020 1×
10 A cheque is drawn payable to 'X' or bearer. Y steals it and negotiates it to Z. Is it possible for 'X' to get back the cheque from 'A'? 2017 1×
10 The cheque is payable to 'M' or order. It is stolen and the thief forges M's signature and presents it to the banker, who makes the payment in due course. Can M recover the amount from the bank? 2020 1×
10 'X' couldn't present the cheque received from his relative due to a busy schedule. The period of limitation is about to expire on a day which happens to be a public holiday. Advise 'X'. 2019 1×
10 A customer of a bank deposited security with the banker. Decide what kind of right the banker has against the security of the customer. 2019 1×
10 A customer of the banker has a deposit of Rs. 1,50,000/- in his account. He issues a cheque for Rs. 50,000/- to the banker for payment. The banker refuses to honour the cheque of the customer. Examine the legal position. 2019 1×
10 'X', a customer, has deposited jewels worth Rs. 50,000 for safe custody. Later he becomes a debtor to the bank. Explain the legal right of the banker. 2015 1×
10 A customer of the Royal Bank drew an open cheque for Rs. 1000 payable to 'P'; the cheque was stolen. The thief forged the payee's endorsement and presented the cheque for payment at the branch upon which it was drawn. The bank cashier paid the cheque without asking for proof of his identity. To whom is the bank liable for the cashier's action? 2016 1×
10 'A' draws a bill as "pay to X or order the sum of ten thousand rupees." In the margin, the amount stated is Rs. 1,000/-. Discuss the legal position. 2019 1×
10 'A' drew cheques in favour of B. A's clerk forged B's endorsement and negotiated the cheques to 'C' who took them in good faith and for value. C received payment of the cheques. A claims to recover the amount from C. Will he succeed? 2015 1×
10 A forged B's signature on a cheque stolen by him from B and presented the same for payment at 'X' Bank. The bank couldn't detect the forgery and made payment. Can B recover that amount from 'X' Bank? 2022 1×
10 'A', the holder of a bill, endorses it to "B or order" for the express purpose that 'B' get it discounted. B negotiates the bill to 'C' who takes it bona fide and for value. Explain the position of 'C'. 2016 1×
10 The holder of a promissory note for Rs. 25,000 endorses it and endorsee's the promissory note. Explain the legal consequences of such an endorsement. [wording partly obscured in the source photograph]. 2021 1×
10 If a cheque is payable to 'X' or order, and 'X' adds the words "pay to Y" or "pay to Y or order," examine the consequences of such an endorsement. 2021 1×
10 If 'X', the endorser of a negotiable instrument on cheque, endorses it in blank and transfers it to 'Y', who in turn endorses it in favour of 'Z'. 'Z' in turn transfers it without any endorsement to 'Q'. If the cheque is dishonoured, who can 'Q' sue? Decide. 2019 1×
10 An Income Tax Officer directly writes to a Banker to disclose certain details relating to his customer's accounts. Examine whether the Banker can legally disclose the information. 2015 1×
10 The instrument speaks of "I promise to pay B Rs. 500/- when B delivers the goods," signed by A. Discuss the nature of the transaction between A and B, and whether the instrument becomes a promissory note. 2020 1×
10 "Mr. 'P', please let bearer have Rs. 500/- and oblige," signed by Q - is this document a Bill of Exchange or not? Explain. 2019 1×
10 Mr. Srinu draws a cheque for Rs. 2,000/- and hands it over to Balu by way of gift. Is Balu a holder in due course? Discuss the interest of Balu to receive the proceeds of the cheque. 2018 1×
10 Mrs. Jaya, a customer of Canara Bank, had a locker facility from 2010. One day she deposited jewellery in that locker with proper confirmation of locking, and returned a month later; the manager informed her by phone that the locker was found opened and the jewellery missing. She filed an FIR with the police and surrendered the locker-key to the bank. Is the bank liable to compensate her for the loss of the jewellery? 2020 1×
10 'B' obtains A's acceptance to a bill of exchange by fraud. B endorses it to 'C' who is a holder in due course; C endorses the bill to 'D' who knows of the fraud. Can 'D' get a good title and recover money from A? 2018 1×
10 'B' obtains A's acceptance to a bill by fraud. B endorses it to 'C' who takes it as a holder in due course. 'C' endorses the bill to 'D' who knows of the fraud. Can 'D' recover from 'A'? 2016 1×
10 A person 'D' accepted a bill of exchange which is drawn in Melbourne. The endorsee, in understanding with the drawer, altered the place of drawing of the bill of exchange from Melbourne to Toronto. Is 'D' liable on the bill? 2021 1×
10 A person 'X' endorses a cheque in blank and transfers it to 'Y'. 'Y' in turn endorses it to 'Z'. 'Z' in turn transfers it to 'M' without any endorsement. In the event of the cheque being dishonoured, decide whom 'M' can sue. 2021 1×
10 A promissory note was executed by Somu in favour of Ramu. Suddenly Somu dies. Can Ramu claim against the legal heirs of Somu? Decide. 2022 1×
10 Ramu kept his valuables in a safe deposit locker provided by the banker. The valuables were stolen. Ramu sued the banker. Will Ramu succeed in his case? State whether the banker is liable. Decide. 2022 1×
10 Reserve Bank of India (RBI) cancelled the license of KL Bank. KL Bank wants to challenge the cancellation of license. Where can the appeal lie? 2018 1×
10 A sells a radio to 'M', a minor, who pays for it by his cheque. A endorses the cheque to B, who takes it in good faith and for value. The cheque is dishonoured on presentation. Can 'B' enforce payment of the cheque against 'A' or 'M'? Discuss. 2015 1×
10 'A' signs an instrument in the following terms: "I am liable to B for a sum of Rs. 500/- to be paid by installments". What is this instrument? Explain. 2015 1×
10 A signs an instrument in the following terms: "I promise to pay B or Order Rs. 500" - what is this instrument? 2015 1×
10 There is a credit balance in the account of Mr. Gopal. The banker wishes to set this off against an overdraft in the joint name of Gopal and Kamal. Will the bank exercise the right of set-off in this situation? 2018 1×
10 'X' took a loan of Rs. 5,00,000 from a bank and didn't pay. He also has a safe deposit locker with the same bank. The banker exercises a lien on the safe deposit locker and didn't allow him to take anything from the locker. Can the bank exercise a lien? 2022 1×
10 When is a Negotiable Instrument considered as dishonoured? What are the duties of a holder upon such dishonour? 2015 1×
15 Define a "Bank". Discuss the law relating to Banking Business and its importance in modern times. 2016 1×
15 Define "Bank Guarantee". Discuss the importance of Letters of Credit in the present scenario. 2015 1×
15 "Banker's obligation to maintain the secrecy of a customer's account is not absolute." - Comment. 2019 1×
15 Define a cheque and discuss the various kinds of cheques. 2021 1×
15 What is a cheque, and who can cross a cheque? 2020 1×
15 What are the circumstances under which a banker would be justified in disclosing the affairs of its customer? 2018 1×
15 What are the circumstances under which a Negotiable Instrument shall be dishonoured? What steps shall be taken by the holder of a dishonoured bill? 2015 1×
15 Explain clearly the statutory protection that is provided by the Negotiable Instruments Act to paying bankers. 2021 1×
15 Explain the concept of Banking Business in India. Discuss its importance in modern times. 2015 1×
15 What is an Endorsement? What are the different kinds of endorsements? 2022 1×
15 Explain the importance of banking business in the development of a country. 2018 1×
15 Discuss the law relating to the relationship between Customer and Banker. 2015 1×
15 Examine the legal character of the Banker-Customer relationship. 2022 1×
15 What are the legal presumptions of a Negotiable Instrument? 2016 1×
15 What is a "Letter of Credit"? Discuss the merits and demerits of making advances against stocks and shares. 2016 1×
15 What is a letter of credit? What are the different kinds of letters of credit? 2020 1×
15 Discuss the main types of Letters of Credit in International Trade. 2018 1×
15 Explain the modes of discharge of parties under the Negotiable Instruments Act, 1881. 2019 1×
15 What is a "Negotiable Instrument"? Is a cheque a negotiable instrument? Explain. 2019 1×
15 Define a "negotiable instrument" and describe the main characteristics of the instrument. 2018 1×
15 What is a Negotiable Instrument? Explain the general characteristics of Negotiable Instruments. 2022 1×
15 What is meant by "Negotiable Instrument"? What are its characteristic features? 2017 1×
15 Explain the penal provisions under the N.I. Act in the light of the IT Act. 2019 1×
15 Examine the principles of good lending. 2022 1×
15 Explain the relationship between Banker and Customer in the changing scenario in India. 2016 1×
15 Discuss the statutory protection available to the paying banker. 2020 1×
15 Examine the statutory protection provided to the Paying Banker under the Negotiable Instruments Act. 2015 1×
15 Trace the history of the banking system in India and its importance in modern times. 2019 1×
15 Examine the various kinds of relationship that exist between a banker and a customer. 2021 1×
15 Who is a Banker? Explain the general relationship between a Banker and his customer. 2019 1×