Banking and Negotiable Instruments
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Questions and Answers

What is mainly discussed in Chapter 5 of the manual?

  • Clearing and Collection of Instruments (correct)
  • Banker customer relationship
  • Various types of account operation
  • Negotiable Instruments

    • Which of the following is NOT discussed in Chapter 5 of the manual?

  • Clearing of Instruments
  • Banker customer relationship (correct)
  • Cash management
  • Collection of Instruments

    • What is discussed in Chapter 6 of the manual?

  • Negotiable Instruments
  • Clearing and Collection of Instruments
  • Bills Collection and Remittance (correct)
  • Cash and vault management

    • What is part of Cash management discussed in Chapter 5 of the manual?

    <p>Measures for safekeeping of cash</p> Signup and view all the answers

    What is NOT a topic discussed in the manual?

    <p>Economics</p> Signup and view all the answers

    What is the primary characteristic of a negotiable instrument?

    <p>It is a transferable document that can be used for settlement of debt</p> Signup and view all the answers

    What is the definition of a negotiable instrument according to the Negotiable Instrument Act 1881?

    <p>A promissory note, bill of exchange or cheque payable to order or bearer</p> Signup and view all the answers

    What is the key difference between a negotiable instrument and money?

    <p>Negotiable instruments are used for settlement of debt</p> Signup and view all the answers

    What is the term used to describe the transferability of a negotiable instrument?

    <p>Negotiation</p> Signup and view all the answers

    What is the purpose of a negotiable instrument?

    <p>To settle a debt</p> Signup and view all the answers

    What documents are required to be submitted by the heirs to claim the unclaimed deposits?

    <p>Passport of the successors and affidavit or notary public</p> Signup and view all the answers

    What is the purpose of the instruction circular letter of the bank regarding procurement of fresh and renewal of corporate deposits?

    <p>To provide instructions for procurement of corporate deposits</p> Signup and view all the answers

    What section of the Bank Company Act 1991 (amendment up to 2013) deals with the maintenance of unclaimed deposit account?

    <p>Section 35</p> Signup and view all the answers

    What is the purpose of annexure-6 in the context of unclaimed deposits?

    <p>To provide a list of files and documents for maintenance of bank records</p> Signup and view all the answers

    What is the purpose of annexure-5 in the context of unclaimed deposits?

    <p>To provide relevant circulars in relation to maintenance of unclaimed deposit account</p> Signup and view all the answers

    What does BACH stand for in the context of clearing and collection of instruments?

    <p>Bangladesh Automated Clearing House</p> Signup and view all the answers

    What is the main responsibility of the presenting bank in the clearing process?

    <p>To ensure the authenticity of the instruments</p> Signup and view all the answers

    What is the purpose of MICR coding in cheque clearing?

    <p>To encode the cheque details for processing</p> Signup and view all the answers

    What is the role of the paying bank in the clearing process?

    <p>To settle the amount with the presenting bank</p> Signup and view all the answers

    What is the main purpose of same-day clearing?

    <p>To clear instruments on the same day as presentment</p> Signup and view all the answers

    What happens to a cheque received in clearing if the order is received before the stipulated returning time?

    <p>It is returned to the customer unpaid</p> Signup and view all the answers

    What is the consequence of a credit being advised in a situation where a cheque is returned unpaid?

    <p>The credit cannot be cancelled</p> Signup and view all the answers

    What right does a bank have prior to receiving a garnishee order?

    <p>Right to set-off</p> Signup and view all the answers

    What happens to the excess amount over the lien marked on a Fixed Deposit receipt?

    <p>It is attached by the garnishee order</p> Signup and view all the answers

    What should be specified in a garnishee order received against a joint account?

    <p>The full details of the account, including all joint account holders' names</p> Signup and view all the answers

    What is the primary purpose of obtaining a clear instruction from joint account holders while opening the account?

    <p>To avoid future disputes among the account holders</p> Signup and view all the answers

    What does the term 'garnishee' refer to in a garnishee order?

    <p>The banker who has been served with the order</p> Signup and view all the answers

    What is the first step in the garnishee proceedings?

    <p>Issuing a garnishee order nisi</p> Signup and view all the answers

    What happens if a garnishee order attaches the whole amount of a customer's account?

    <p>The banker must dishonor the customer's cheques</p> Signup and view all the answers

    What should a banker do if a garnishee order is received after debiting the customer's account, but before payment of cash?

    <p>Refuse payment with an appropriate objection</p> Signup and view all the answers

    What does ACH stand for?

    <p>Automated Clearing House</p> Signup and view all the answers

    What is the role of BAMLCO in a bank?

    <p>Branch Anti Money Laundering Compliance Officer</p> Signup and view all the answers

    What does BEFTN stand for?

    <p>Bangladesh Electronic Funds Transfer Network</p> Signup and view all the answers

    What is the purpose of CHIPS?

    <p>To facilitate clearing house interbank payment</p> Signup and view all the answers

    What is the role of CTR in banking?

    <p>Cash Transaction Reporting</p> Signup and view all the answers

    What is the purpose of RTGS?

    <p>Real Time Gross Settlement</p> Signup and view all the answers

    What is the purpose of TT?

    <p>Telegraphic Transfer</p> Signup and view all the answers

    What is the role of MICR in banking?

    <p>Magnetic Ink Character Recognition</p> Signup and view all the answers

    What is the purpose of LD in banking?

    <p>Local Draft</p> Signup and view all the answers

    What is the purpose of POA in banking?

    <p>Power of Attorney</p> Signup and view all the answers

    Which chapter of the manual covers Bank Locker and their different issues?

    <p>Chapter 8</p> Signup and view all the answers

    What type of relationship exists between a bank and its clients?

    <p>Fiduciary</p> Signup and view all the answers

    What is the primary role of a commercial bank in the economy?

    <p>Financial intermediary</p> Signup and view all the answers

    What is the main responsibility of a bank towards its customers?

    <p>Protecting customers' deposits and secrecy</p> Signup and view all the answers

    What is the characteristic of a bank's dealings with its customers?

    <p>Impartial and non-discriminatory</p> Signup and view all the answers

    What is the main responsibility of the paying bank in the clearing process?

    <p>To ensure the payment of the cheque</p> Signup and view all the answers

    What is the primary purpose of BACH in clearing?

    <p>To facilitate the clearing of cheques</p> Signup and view all the answers

    What is the primary purpose of MICR coding in cheque clearing?

    <p>To facilitate the processing of cheques</p> Signup and view all the answers

    What is the primary purpose of Real-Time Gross Settlement (RTGS)?

    <p>To facilitate the transfer of funds</p> Signup and view all the answers

    What is discussed in Chapter 6 of the manual?

    <p>Bills Collection and Remittance</p> Signup and view all the answers

    What is the primary purpose of same-day clearing?

    <p>To facilitate the settlement of funds on the same day</p> Signup and view all the answers

    What is the relationship discussed in Chapter 2 of the manual?

    <p>Banker Customer Relationship</p> Signup and view all the answers

    How many chapters are there in the manual?

    <p>12</p> Signup and view all the answers

    What type of issues are discussed in the manual?

    <p>Risk Issues and Capacity Development</p> Signup and view all the answers

    Who is the target audience for the manual?

    <p>Senior Bank Executives</p> Signup and view all the answers

    What is the main objective of a trust account?

    <p>To benefit the beneficiary</p> Signup and view all the answers

    What document should a banker examine thoroughly when opening an account in the names of persons as trustees?

    <p>Trust deed</p> Signup and view all the answers

    What documents are required to be submitted by the successors to claim the unclaimed deposits?

    <p>Passport of the successors, marriage certificate, indemnity from the successors, and guarantee from third party</p> Signup and view all the answers

    Who reposes confidence in a person or group of persons in a trust?

    <p>Author of the trust</p> Signup and view all the answers

    What is placed in annexure-6 for compliance?

    <p>List of files and documents for maintenance of bank records</p> Signup and view all the answers

    What is the right of a beneficiary against the trustee?

    <p>Right to the trust money</p> Signup and view all the answers

    What is the purpose of annexure-7?

    <p>It provides instructions for procurement of fresh and renewal of corporate deposits</p> Signup and view all the answers

    What is the subject matter of a trust?

    <p>Trust property or trust money</p> Signup and view all the answers

    What is the relevance of section 35 of the Bank Company Act 1991 (amendment up to 2013) in the context of unclaimed deposits?

    <p>It deals with the maintenance of unclaimed deposit account</p> Signup and view all the answers

    What is the purpose of an indemnity from the successors or guarantee from a third party?

    <p>To ensure the bank's protection against potential losses</p> Signup and view all the answers

    What is the main purpose of deposit mobilization?

    <p>To attract deposits from various customer groups</p> Signup and view all the answers

    Why do banks diversify sources of funds?

    <p>To reduce dependence on funds from other banks</p> Signup and view all the answers

    What is the primary source of funds for banks?

    <p>Deposits from retail and corporate customers</p> Signup and view all the answers

    What is the benefit of introducing several deposit schemes?

    <p>To attract deposits from various customer groups</p> Signup and view all the answers

    Why do banks open branches across the country?

    <p>To reduce dependence on urban deposits</p> Signup and view all the answers

    What is the role of deposits in banking?

    <p>A major task of banking</p> Signup and view all the answers

    What is money placed into a banking institution for?

    <p>For safekeeping</p> Signup and view all the answers

    What are deposits kept in?

    <p>Various accounts in a bank</p> Signup and view all the answers

    What do banks use to fund their business?

    <p>Deposits from retail and corporate customers, as well as call money from local banks</p> Signup and view all the answers

    Why is deposit mobilization important for banks?

    <p>To attract deposits from various customer groups</p> Signup and view all the answers

    What is the main responsibility of a leader in banking?

    <p>To manage the bank's financial resources effectively</p> Signup and view all the answers

    What is the purpose of employee motivation in banking?

    <p>To improve employee productivity and job satisfaction</p> Signup and view all the answers

    What is work stress in the banking sector?

    <p>A psychological and physical response to work-related pressures</p> Signup and view all the answers

    What is the purpose of handling employee grievances in banking?

    <p>To resolve employee complaints and issues fairly and promptly</p> Signup and view all the answers

    What is leadership in banking?

    <p>A process of influencing and guiding others to achieve a common goal</p> Signup and view all the answers

    What is primarily discussed in Chapter 6 of the manual?

    <p>Bills Collection and Remittance</p> Signup and view all the answers

    What is the main purpose of cheque clearing?

    <p>To provide a secure way of payment</p> Signup and view all the answers

    What is the primary role of the presenting bank in the clearing process?

    <p>To collect cheques and deposit them into the customer's account</p> Signup and view all the answers

    What is the main concern in cheque clearing process?

    <p>Security of payment</p> Signup and view all the answers

    What is the primary benefit of cheque clearing?

    <p>Increased security in payment</p> Signup and view all the answers

    What is the relationship between banks and their clients?

    <p>Fiduciary</p> Signup and view all the answers

    What is the significance of commercial banks in the development process?

    <p>Indicating economic development</p> Signup and view all the answers

    What is the primary role of a commercial bank in the economy?

    <p>Acting as a financial intermediary</p> Signup and view all the answers

    What is the main responsibility of a bank?

    <p>Protecting customers' secrecy</p> Signup and view all the answers

    What is the characteristic of a bank's dealings with its customers?

    <p>Impartial and non-discriminatory</p> Signup and view all the answers

    What is the primary function of BACH in the context of clearing and collection of instruments?

    <p>To facilitate the exchange of instruments between banks</p> Signup and view all the answers

    Which of the following is a key aspect of MICR coding in cheque clearing?

    <p>Reading and processing of cheques</p> Signup and view all the answers

    What is the primary responsibility of the presenting bank in the clearing process?

    <p>To ensure the instrument is in order before presenting it for payment</p> Signup and view all the answers

    What is the primary purpose of the operational due diligence in clearing and collection of instruments?

    <p>To manage the risk associated with negotiable instruments</p> Signup and view all the answers

    What is the primary benefit of same-day clearing in the context of cheque clearing?

    <p>Improving customer satisfaction through faster settlement</p> Signup and view all the answers

    What is the main role of the collecting bank in the cheque clearing process?

    <p>To present the cheque to the paying bank</p> Signup and view all the answers

    What is the consequence of a cheque being returned unpaid?

    <p>The account is debited</p> Signup and view all the answers

    What is the primary purpose of the clearing process?

    <p>To enable inter-bank payments</p> Signup and view all the answers

    What is the role of MICR in cheque clearing?

    <p>To encode cheques for clearing</p> Signup and view all the answers

    What is the main purpose of the Bankers' Books Evidence Act of 1891?

    <p>To provide evidence in court</p> Signup and view all the answers

    What is the instrument by which a trust is created?

    <p>Trust Deed</p> Signup and view all the answers

    What is the role of a trustee in a trust?

    <p>To accept and manage the trust property on behalf of the beneficiary</p> Signup and view all the answers

    What should a banker examine thoroughly when opening an account in the name of a trustee?

    <p>The Trust Deed</p> Signup and view all the answers

    What is the right of a beneficiary against the trustee?

    <p>To claim a beneficial interest in the trust property</p> Signup and view all the answers

    What is the primary purpose of a trust account in a bank?

    <p>To administer the trust property for the benefit of the beneficiary</p> Signup and view all the answers

    What document is required to be submitted by the heirs in case of a deceased person?

    <p>Affidavit or Notary Public</p> Signup and view all the answers

    What is the purpose of annexure-5 in the context of unclaimed deposits?

    <p>To detail the circulars regarding maintenance of unclaimed deposit account</p> Signup and view all the answers

    What is mentioned in annexure-6 for compliance?

    <p>A detailed list of files and documents along with the time limit for maintenance of bank records</p> Signup and view all the answers

    What is the purpose of the payment order in the context of unclaimed deposits?

    <p>To issue a payment order in favor of the payee mentioning the name of the deceased</p> Signup and view all the answers

    What is discussed in the 'Questions and Answer Indications' section of the study material?

    <p>The risk incurred by a banker in opening an account with Trustees and Executors</p> Signup and view all the answers

    What is the main objective of banks to diversify sources of funds?

    <p>To reduce dependence on urban deposits</p> Signup and view all the answers

    What is the primary source of funding for banks?

    <p>Deposits from retail and corporate customers</p> Signup and view all the answers

    What is the benefit of introducing several deposit schemes?

    <p>To attract deposits from various customer groups</p> Signup and view all the answers

    Why are banks opening branches across the country?

    <p>To reduce dependence on urban deposits</p> Signup and view all the answers

    What is the primary function of a bank?

    <p>Mobilization of savings through intensive deposit collection</p> Signup and view all the answers

    What is the primary source of funds for banks, apart from deposits?

    <p>Call money from local banks</p> Signup and view all the answers

    What is the primary objective of a bank?

    <p>To mobilize savings through intensive deposit collection</p> Signup and view all the answers

    What is the main task of banking?

    <p>Mobilization of savings through intensive deposit collection</p> Signup and view all the answers

    What is the primary role of bank deposits?

    <p>To fund the bank's business</p> Signup and view all the answers

    Why do banks need to manage each deposit scheme carefully?

    <p>To attract deposits from various customer groups</p> Signup and view all the answers

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