Most Important Questions PPB (Principles and Practices of Banking) | JAIIB – Class 3

Q1. The MD of a Private Ltd company endorses a cheque payable to the company in his favour and wants you to collect the same in his personal account. What will you do:
(a) Allow after verifying the genuineness of endorsement
(b) Allow only after verifying the genuineness of the transaction
(c) Not allowed as the Bank may be liable for conversion
(d) Not allowed as cheque favouring a company cannot be endorsed

Q2. The banker customer relationship in case of a locker is that of:
(a) Lessee and lessor
(b) Trustee and beneficiary
(c) Agent and Principal
(d) Lessor and lessee

Q3. If both the words bearer as well as order are written and none of these is deleted, The cheque would be considered to be a:
(a) Bearer cheque
(b) Order cheque
(c) It can be order cheque or bearer it depends on the discretion of the bank
(d) It can be order cheque or bearer it depends on the discretion of the payee

Q4. You receive a cheque in an overdraft account for Rs.32,000.00. The debit balance in the account is Rs. 35,000.00 and the Over Draft limit is Rs 60,000.00. What reason you will state while returning:
(a) Refer to drawer
(b) Effects Not cleared
(c) eeds arrangement
(d) Endorsement not correct

Q5. Cancellation of Enrollment for existing customers under Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY) and Pradhan Maned Suraksha Bima Yojana (PMSBY):
(a) Can be cancelled on customer submitting a written request
(b) Can be cancelled by branch for undesirable parties only
(c) Can be cancelled only after 10 years
(d) Cannot be cancelled at all

Q6. If garnishee order does not specify an amount,  it will be applicable or not;
(a) Applicable and full amount in the account will be attached
(b) Applicable and half amount in the account will be attached
(c) Applicable and court mentioned amount in the account will be attached
(d) Not applicable and no amount in the account will be attached

Q7. A partnership has 3 partners. Sudhir, Ananad and Tushar and a nomine son of Ram admitted for the benefit of the partnership. The account opening form should be signed by?
(a) All the partners including minor
(b) All the partners with minor’ natural guardianship
(c) Only the partners other than minor
(d) None of the above

Q8. Mr. Mohan has a saving account in XYZ bank with a balance of Rs. 10,000 as at the close business hours on 1st February 2018. The bank received a garnishee order for Rs.15000 on saving account of Mr. Mohan on 2nd February 2018 at 10:30 AM Mr. Mohan visited the bank on 2nd February 2018 at 12:30 PM and deposits Rs. 10,000 in his saving accounts. How will bank act in respect to the garnishee order?
(a) The order would apply and the amount of Rs.15,000 will be deducted or put on hold as per the direction of the court
(b) The bank will refuse to accept the deposit in the account after garnishee order is served
(c) The order will apply to the amount of Rs. 10,000 only, Available at the time of garnishee order
(d) Order will apply if court is informed about the subsequent deposit after garnishee order.

Q9. In case of MSME loan classified as standard asset provision is to be made at the rate of:
(a) 0.25% of the outstanding amount
(b) 0.75% of the outstanding amount
(c) 1% of the outstanding amount
(d) 5% of the outstanding amount

Q10. The garnishee order does not attach the followings:
(a) Amount deposited 2 hours after the receipt of the order
(b) Undrawn balance in OD a/c
(c) Amount received for safe custody
(d) All of the above

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