Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 Post Graduate Diploma Bank management Ma0028 - Banking related Laws and Practices - Assignments for spring

POST GRADUATION DIPLOMA IN BANK MANAGEMENT
Subject code MA0028
(2 credits)
Set 1
Marks 30
Subject Name: Banking Related Laws and Practices
All ques. carry five marks every
Q.1. Distinguish ranging from “RBI as regulator of banks” and “Government as regulator of banks”.
Q.2. Mention all the assets which are considered for computing the amount of liquid assets for the purpose of SLR computation.
Q.3.Raja and Shanat maintain a current account at your branch in their joint names. It is operated under their joint signatures. They also enjoy an overdraft limit of Rs 60,000 and the account indicates a debit balance of Rs36000/-. The loan documents which were executed by them are going to expire next month as they have not renewed the identical. Further they refused to sign the usual balance confirmation letter. The branch manager wants to set-off the overdraft account maintained by Raja which indicates a credit balance of Rs60200/-. Comment whether the right of set-off can be exercised and briefly explain the provisions of Rights of set-off.
Q.4. Mr Sundar raised a loan for purchase of consumer durables but as a outcome of delayed payment of due amount, the account has become sub-standard for which branch is making regular follow-up. When he deposited a sum of Rs10,000/- to- day with the bank for issuance of a demand draft, the bank decided to utilise the amount for recovery of the amount due in sub-standard a/c. Mr Sundar objects to the decision of the bank and threaten legal action. Bank has large amount under sub-standard category and is under pressure to decrease the identical. Comment on the bank’s decision and highlight the provisions under the legal regulations of Appropriation.

Q.5. discuss the steps taken by the banks to avoid the operation of Clayton’s case in a running account.

Q.6. distinguish ranging from a contract of Indemnity and a contract of Guarantee.

POST GRADUATION DIPLOMA IN BANK MANAGEMENT
ASSIGNMENTS
Subject code:Ma0028
(2 credits)
Set 2
Marks 30
Subject Name: Banking related Laws and Practices
All ques. carry five marks every.
Q.1.Explain the different kinds of Guarantees issued by a bank.
Q.2. discuss the documents to be found under a Letter of Credit.

Q.3. discuss the provision of companies Act 1956 with regard to creation of charge and satisfaction of charge.
Q.4. discuss the provisions for arbitration and conciliation as detailed under the Banking Ombudsman Scheme.
Q.5. A bank in India negotiated a document for £5200/- under a letter of credit opened by Yemen Bank and claimed reimbursement from the opening bank instead of reimbursing bank mentioned in the L/C. The issuing bank refused payment, treating the direct claim as a discrepancy. The matter was referred to International Chamber Of commerce. Although the commission on ICC did not provide a specific decision , experts in ICC felt that because the negotiating bank claimed reimbursement direct from the issuing bank instead of reimbursing bank, it would not constitute discrepancy and the issuing bank could not reject payment.
Analyze the problems involved governing payment instructions under a letter of credit and comment whether the bank in India is able to find the amount from the issuing bank.
Q.6. Discus the Banker’s duty to honor guarantee with particular reference to the English case R.D. Harbottle Ltd. vs National Westminister Bank Ltd(1978).

Earning:   Approval pending.