B.Com-COMMERCE 6th Sem LAW AND PRACTICE OF BANKING(Bangalore University, Bangalore-2008)

IV Semester B.Com. Examination, May/June 2008
COMMERCE
Law and Practice of Banking
(Paper - 4.5)

Time : 3 Hours Max. Marks : 90

SECTION - A

Answer any 10 of the following. Each question carries 2 marks : (10x2=20)

1. a) Define Customer.
b) Who is paying banker ?
c) What is over draft ?
d) Define Endorsement.
e) Give the meaning of standing instruction.
f) What is a Credit Card ?
g) What is Banker lien ?
h) Who is an executor ?
i) What is a Letter of Credit ?
j) Define Mortgage.
k) What are the Negotiable Instrument ?
l) What is payment in due course ?

SECTION - B

Answer any 5 of the following. Each question carries 5 marks : (5x5=25)

2. What are the special relationship between banker and customer ?

3. Comment on the bankers obligation to maintain the secrecy of his customer account.

4. Give a note on the Mandatory Functions of paying Bankers.

5. What are the precautions a banker should take while dealing with Joint Hindu Family ?

6. What are the different kinds of short term borrowing facilities granted by Banks ?

7. What are the legal provisions regarding endorsement ?

8. What are the agency services rendered by a Banker ?

9. Explain the different types of N.R.I. Account.

SECTION - C

Answer any 3 of the following. Each question carries 15 marks : (3x15=45)

10. Who is a Collecting Banker ? Briefly discuss the statutory protection given to him.

11. Under which circumstances cheques are dishonoured ? What are the consequences of wrongful dishonour of a cheque ?

12. What are the precautions a banker should take in dealing with the Joint Account Holders ?

13. What are the principles a Banker should follow before granting loans and advances ?

14. Write a note on the following :

a) Right of set off
b) Garnishee order
c) Lien.