Chapter: Paying Banker
1.

Name the person to whom the amount of the cheque is payable?

A. Drawer.
B. Payee.
C. Drawee.
D. Acceptor
Answer» C. Drawee.
2.

A banker should not refuse payment of a cheque if ________.

A. The cheque is a post dated cheque.
B. The cheque is drawn on another branch of the same bank.
C. The cheque contains an apparent material alteration which is not properly authenticated by the drawer.
D. the cheque bears more than two endorsements
Answer» D. the cheque bears more than two endorsements
3.

The paying banker can get protection for a materially altered cheque provided __.

A. The alteration is not apparent.
B. He makes payment in due course.
C. The alteration is immaterial.
D. Both A and B
Answer» D. Both A and B
4.

The written instructions given by the customers to banker to perform the services like collection and payment of money is noted down in

A. Written Instructions Book
B. Standing Instructions Book
C. Banking Instructions Book
D. Services Instructions Book
Answer» B. Standing Instructions Book
5.

The paying banker who makes cash payment of a cross cheque at the counter shall be liable for the loss of

A. Drawer of the cheque
B. True owner of the cheque
C. Collecting banker
D. the First endorser
Answer» B. True owner of the cheque
6.

The document which can be used only for making local payment is........

A. A cheque
B. A bill of exchange
C. A banker's cheque
D. A draft
Answer» C. A banker's cheque
7.

Not negotiable crossing is a warning to the...........

A. Paying banker
B. Collecting banker
C. Holder
D. (a) and (b) together
Answer» C. Holder
8.

To get statutory protection, paying banker must make:

A. Payment to a holder
B. Payment to a holder in due course
C. Payment in due course
D. Payment to a drawee in case of need
Answer» C. Payment in due course
9.

Which of the following Committee recommended to form a new category of Bank Called Payment Banks?

A. Gadgil Committee
B. M L Dhantwala Committee
C. Nachiket Mor Committee
D. P J Nayak Committee
Answer» C. Nachiket Mor Committee
10.

Which of the following permit cheque operation?

A. Savings bank accounts and fixed deposit accounts
B. Current accounts and fixed deposit accounts
C. Savings bank accounts and cash accounts
D. Savings bank accounts and current accounts
Answer» D. Savings bank accounts and current accounts
11.

What happens if a crossed cheque is presented for payment?

A. It can be paid only through a banker
B. It cannot be paid at all
C. It can be paid across the counter in another bank
D. None of the above
Answer» A. It can be paid only through a banker
12.

The paying banker is protected under following SECTION for payment of cheque with forged signature of the drawer.

A. Sec 89 of N.I act
B. sec 85[1] of N.I act
C. sec 131 of N.I act
D. no protection is available
Answer» D. no protection is available
13.

Which banker gets protection under section 85 of Negotiable Instrument Act, 1881?

A. Collecting banker.
B. Paying banker.
C. Issuing banker.
D. Both a and b.
Answer» B. Paying banker.
14.

Protection to the Paying Bank in case of alteration in a cheque is available under.

A. Sec 85 of NI act
B. Sec 89 of NI act
C. Sec 90 of NI act
D. Sec 98 of NI act
Answer» B. Sec 89 of NI act
15.

The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer.

A. True
B. False
C. none
D. none
Answer» A. True
16.

The paying banker should pay the cheque when there is restriction imposed on the payment by the drawer or by the law.

A. True
B. False
C. none
D. none
Answer» B. False
17.

In case of sufficiency of funds in the account of the drawer which can be properly used to pay the cheque, the banker must pay the cheque when required to do so.

A. True
B. False
C. none
D. none
Answer» A. True
18.

The payment should be made when the cheques are presented for payment within a reasonable time after being drawn and during banking hours.

A. True
B. False
C. none
D. none
Answer» A. True
19.

Section 45 of the Negotiable instruments Act, has imposed upon the banker the obligation to honour customers cheques.

A. True
B. False
C. none
D. none
Answer» B. False
20.

How many Payment banks were approved by RBI in 2015?

A. 7
B. 11
C. 41
D. 9
Answer» B. 11
21.

How many branches of Payment banks must be in the unbanked rural area?

A. 25%
B. 50%
C. 35%
D. 75%
Answer» A. 25%
22.

Which of the following activities cannot be undertaken by a Payments Bank?

A. Accept deposits
B. Payment of Utility Bills
C. Lending Money
D. None of the above
Answer» C. Lending Money
23.

Under what section of the Banking Regulation Act, 1949 the payments banks are licensed?

A. 22
B. 2
C. 19
D. 11
Answer» A. 22
24.

Which is India's first Payment bank?

A. PayTM Payments Bank
B. JIO Payment Banks
C. Airtel Payments Banks
D. Fino Payments Bank
Answer» C. Airtel Payments Banks
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