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Banking Operations: Negotiable Instruments & Banker's Responsibilities
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Banking Operations: Negotiable Instruments & Banker's Responsibilities

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@StunnedVoice

Questions and Answers

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

  • A document that is transferable by delivery only
  • A promissory note, bill of exchange or cheque payable either to order or to bearer (correct)
  • A document that is transferable by endorsement only
  • A document that is not transferable at all

    • What is the primary characteristic of a negotiable instrument?

  • It is a document that is used for settlement of debt only
  • It is a document that can be transferred by endorsement only
  • It is transferable from hand to hand for value (correct)
  • It is a written document

    • What does the term 'Negotiable' mean in the context of negotiable instruments?

  • Transferable by endorsement only
  • Transferable by delivery or by endorsement and delivery (correct)
  • Transferable by delivery only
  • Not transferable at all

    • What is the purpose of a negotiable instrument?

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

    What is a characteristic of a negotiable instrument similar to money?

    <p>It can be transferred from hand to hand</p> Signup and view all the answers

    Who is the person on whom a bill is drawn?

    <p>Drawee or Acceptor</p> Signup and view all the answers

    What is a characteristic of a cheque?

    <p>It is a bill of exchange drawn on a specified banker</p> Signup and view all the answers

    Why is a cheque a popular mode of payment?

    <p>It can pass from one hand to another easily</p> Signup and view all the answers

    What is the significance of a cheque in commercial transactions?

    <p>It is the most commercial and safe method of money transaction</p> Signup and view all the answers

    What does 'material alteration' include in relation to a cheque?

    <p>An alteration of the date or sum</p> Signup and view all the answers

    What is the status of the transferee's title if they can prove themselves as a holder in due course?

    <p>Not affected by the transferor's defective title</p> Signup and view all the answers

    What is the primary characteristic of a Promissory Note?

    <p>An unconditional undertaking to pay</p> Signup and view all the answers

    Who is the creditor in a Promissory Note?

    <p>The payee</p> Signup and view all the answers

    What is the primary characteristic of a Bill of Exchange?

    <p>An unconditional order to pay</p> Signup and view all the answers

    What is the direction of payment in a Bill of Exchange?

    <p>From the debtor to the creditor</p> Signup and view all the answers

    What type of deposits require a fixed period and rate of interest?

    <p>Fixed Deposits</p> Signup and view all the answers

    What is required to open an account with a bank?

    <p>A filled-in Account Opening Form, Proof of Identity, and a Specimen Signature Card</p> Signup and view all the answers

    What is the purpose of a Know Your Customer (KYC) form?

    <p>To verify the customer's identity</p> Signup and view all the answers

    What document is required for nominees?

    <p>Photographs of the nominee(s)</p> Signup and view all the answers

    What is essential for a valid contract, as per the Contract Act, 1872?

    <p>The customer must be competent to contract</p> Signup and view all the answers

    What is a trust according to the Trust Act, 1882?

    <p>An obligation annexed to the ownership of property, arising out of confidence reposed in a person or group of persons and accepted by them for the benefit of another or of another and the owner</p> Signup and view all the answers

    What is the role of the author of the trust?

    <p>To repose or declare confidence</p> Signup and view all the answers

    Which chapter of the manual primarily deals with Negotiable Instruments?

    <p>Chapter 4</p> Signup and view all the answers

    What is the primary focus of Chapter 4 in the manual?

    <p>Negotiable Instruments</p> Signup and view all the answers

    What is the beneficial interest of the beneficiary?

    <p>The right against the trustees as owner of the trust property</p> Signup and view all the answers

    What is the Trust Deed according to the Trust Act, 1882?

    <p>A document that contains the terms and conditions of the trust</p> Signup and view all the answers

    What is NOT a topic discussed in Chapter 4 of the manual?

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

    What should a banker do when opening an account in the names of persons in their capacity as trustees?

    <p>Thoroughly examine the Trust Deed appointing the trustees</p> Signup and view all the answers

    What is the main theme of the section that precedes Chapter 4 in the manual?

    <p>Opening and operations of bank accounts</p> Signup and view all the answers

    What is NOT a topic discussed in the manual?

    <p>International Trade Finance</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 of clearing?

    <p>It must be returned</p> Signup and view all the answers

    Under what condition can a credit be cancelled and a cheque be returned unpaid?

    <p>If the credit is not advised and the transfer of amount is done internally in another customer's account</p> Signup and view all the answers

    What is the consequence of a bank having a prior right to set-off?

    <p>The bank is not bound by the garnishee order</p> Signup and view all the answers

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

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

    What happens if a garnishee order mentions only one of the joint account holders as the judgment debtor?

    <p>The bank seeks instructions from the Head Office</p> Signup and view all the answers

    What is the rule regarding the attachment of a trust account?

    <p>The outstanding in the trust account cannot be attached</p> Signup and view all the answers

    What is the liability of partners in a partnership account?

    <p>Partners are jointly and severally liable for the firm's debts</p> Signup and view all the answers

    What happens to the excess 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 done when a bank has a prior right to set-off and a lien is marked on a Fixed Deposit receipt?

    <p>The bank advises the court and the order is vacated</p> Signup and view all the answers

    According to sec-13 of Negotiable Instrument Act 1881, what is a negotiable instrument?

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

    What is the primary characteristic of a negotiable instrument?

    <p>It is transferable from hand to hand by way of negotiation</p> Signup and view all the answers

    What is the term 'Negotiable' mean in the context of negotiable instruments?

    <p>Transferable by delivery</p> Signup and view all the answers

    What are the characteristics of negotiable instruments like?

    <p>Like money, transferable from hand to hand by way of negotiation</p> Signup and view all the answers

    What is a written document by which a right is created in favor of some person?

    <p>An instrument</p> Signup and view all the answers

    Who is the person to whom the amount is payable in a bill of exchange?

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

    What is a characteristic of a cheque?

    <p>It is drawn on a specific banker</p> Signup and view all the answers

    What is included in the definition of 'material alteration' in relation to a cheque?

    <p>Alteration of the date</p> Signup and view all the answers

    What is the significance of a cheque in commercial transactions?

    <p>It is a popular and safe method of payment</p> Signup and view all the answers

    What is the primary benefit of using a cheque?

    <p>It reduces the risk of loss</p> Signup and view all the answers

    What is the effect on the transferee's title if the transferor's title is defective?

    <p>The transferee's title is not affected if he is a holder in due course</p> Signup and view all the answers

    What is the characteristic of a Promissory Note?

    <p>It is an unconditional undertaking to pay on demand or at a fixed time</p> Signup and view all the answers

    Who is the person who gets the money in a Promissory Note?

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

    What is a characteristic of a Bill of Exchange?

    <p>It is an unconditional order to pay a certain sum of money</p> Signup and view all the answers

    What is the direction of payment in a Bill of Exchange?

    <p>From the drawer to the drawee</p> Signup and view all the answers

    What is the primary focus of Chapter 4 in the manual?

    <p>Negotiable Instruments</p> Signup and view all the answers

    What is the main topic of Chapter 4 in the manual?

    <p>Negotiable Instruments</p> Signup and view all the answers

    What is discussed in Chapter 4, along with features and characteristics of negotiable instruments?

    <p>Some other important issues</p> Signup and view all the answers

    What is the main theme of Chapter 3 in the manual?

    <p>Opening &amp; operations of different bank accounts</p> Signup and view all the answers

    Which chapter of the manual discusses general banking activities?

    <p>Broad areas of the manual</p> Signup and view all the answers

    What type of deposits require a fixed period and rate of interest?

    <p>Fixed Deposits</p> Signup and view all the answers

    What is a common document required for opening a deposit account?

    <p>Duly filled in Account Opening Forms</p> Signup and view all the answers

    What is the purpose of a Specimen Signature Card in opening a deposit account?

    <p>To authenticate the customer's signature</p> Signup and view all the answers

    What is required to open an account with a bank?

    <p>The customer must be competent to contract as per Contract Act, 1872</p> Signup and view all the answers

    What is a characteristic of a time deposit?

    <p>The rate of interest is fixed</p> Signup and view all the answers

    What is the person who reposes or declares confidence in a trust called?

    <p>Author of the trust</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 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 subject matter of a trust called?

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

    What is the beneficial interest of the beneficiary in a trust?

    <p>The right against the trustee as owner of the trust property</p> Signup and view all the answers

    What happens if a credit is made to a customer's account internally, and then the transfer of amount is done in another customer's account?

    <p>The credit can be cancelled and the cheque can be returned unpaid.</p> Signup and view all the answers

    What is the consequence of a bank having a prior right to set-off?

    <p>The bank is not bound by the garnishee order where lien is marked on Fixed Deposit receipts.</p> Signup and view all the answers

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

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

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

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

    What is the liability of partners in a partnership account?

    <p>They are jointly liable for the firm's debts.</p> Signup and view all the answers

    What happens if a garnishee order is received against a joint account, but only mentions one of the joint account holders as the judgment debtor?

    <p>The joint account is not attached.</p> Signup and view all the answers

    What is the rule regarding the attachment of a trust account?

    <p>The outstanding in the trust account cannot be attached.</p> Signup and view all the answers

    What should be done when a bank has a prior right to set-off and a lien is marked on a Fixed Deposit receipt?

    <p>The bank should intimate the court and the order must be vacated.</p> Signup and view all the answers

    What is the consequence of a credit being cancelled and a cheque being returned unpaid?

    <p>The credit can be cancelled and the cheque can be returned unpaid, provided credit is not advised.</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 of clearing?

    <p>The cheque must be returned.</p> Signup and view all the answers

    Who is the person to whom the amount is payable in a bill of exchange?

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

    What is included in the definition of 'material alteration' in relation to a cheque?

    <p>Alteration of the date and amount</p> Signup and view all the answers

    What is the significance of a cheque in commercial transactions?

    <p>It is a popular mode of payment due to low transfer cost and minimal loss possibility</p> Signup and view all the answers

    Who is the person who draws a bill of exchange?

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

    What is a characteristic of a cheque that makes it a popular mode of payment?

    <p>It is a negotiable instrument that can be passed from one hand to another easily</p> Signup and view all the answers

    Which chapter of the manual discusses Negotiable Instruments?

    <p>Chapter 4</p> Signup and view all the answers

    What is the term for a document that creates a right in favor of a person?

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

    What is the primary focus of Chapter 4 in the manual?

    <p>Negotiable Instruments and capacity development aspects</p> Signup and view all the answers

    What is discussed in Chapter 4, along with features and characteristics of negotiable instruments?

    <p>Risk issues and capacity development aspects</p> Signup and view all the answers

    What is the primary characteristic of a negotiable instrument?

    <p>It is transferable by delivery</p> Signup and view all the answers

    What is the main topic of Chapter 4 in the manual?

    <p>Negotiable Instruments</p> Signup and view all the answers

    What is the term 'Negotiable' mean in the context of negotiable instruments?

    <p>Transferable by delivery</p> Signup and view all the answers

    In which chapter are negotiable instruments, their features, and characteristics discussed?

    <p>Chapter 4</p> Signup and view all the answers

    What is a characteristic of negotiable instruments similar to money?

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

    According to Section 13 of the Negotiable Instrument Act 1881, what is a 'Negotiable Instrument'?

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

    What is the primary characteristic of a holder in due course?

    <p>The holder in due course is entitled to sue in his own name against all the prior parties to realize proceeds of the instruments</p> Signup and view all the answers

    What is the primary difference between a Promissory Note and a Bill of Exchange?

    <p>A Promissory Note has an unconditional undertaking, while a Bill of Exchange has an unconditional order</p> Signup and view all the answers

    Who is the person who makes the promise to pay in a Promissory Note?

    <p>The maker</p> Signup and view all the answers

    What is the primary purpose of a Bill of Exchange?

    <p>To provide a means of payment between two parties</p> Signup and view all the answers

    What is the primary right of a holder in due course?

    <p>The right to sue all the prior parties to realize proceeds of the instruments</p> Signup and view all the answers

    What is essential for a banker to open an account?

    <p>All of the above</p> Signup and view all the answers

    What type of deposits require a fixed period and rate of interest?

    <p>Time Deposits</p> Signup and view all the answers

    What is necessary for a valid contract when a banker opens an account?

    <p>All the essential features of a valid contract</p> Signup and view all the answers

    What is typically required for opening each type of account?

    <p>Several documents including account opening forms, proof of identity, and verification of address</p> Signup and view all the answers

    Who can open an account with a bank?

    <p>Any person competent to contract as per Contract Act, 1872</p> Signup and view all the answers

    What is the primary purpose of the Trust Deed?

    <p>To vest powers in the trustees for administering the trust property</p> Signup and view all the answers

    What is the key feature of a trust as per the Trust Act, 1882?

    <p>An obligation annexed to the ownership of property</p> Signup and view all the answers

    What should a banker examine thoroughly before opening an account in the names of persons in their capacity as trustees?

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

    What is the relationship between the trustee and the beneficiary?

    <p>The trustee holds the trust property for the benefit of the beneficiary</p> Signup and view all the answers

    What is the effect of a trust on the ownership of the trust property?

    <p>The ownership of the trust property is held by the trustee</p> Signup and view all the answers

    What happens to the credit if the transfer of amount is done in another customer's account internally?

    <p>The credit is cancelled and the cheque is returned unpaid</p> Signup and view all the answers

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

    <p>All the names of the joint account holders</p> Signup and view all the answers

    What happens to the outstanding in a trust account?

    <p>It cannot be attached, if the judgment debtor has deposited the money as a trustee</p> Signup and view all the answers

    What is the liability of partners in a partnership account?

    <p>Jointly and severally liable for the firm's debts</p> Signup and view all the answers

    What should be done when a bank has a prior right to set-off and a lien is marked on a Fixed Deposit receipt?

    <p>The fact of right off should be intimated to court and order must be vacated</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 of clearing?

    <p>The cheque is returned unpaid</p> Signup and view all the answers

    What is the consequence of a bank having a prior right to set-off?

    <p>The bank is not bound by the garnishee order</p> Signup and view all the answers

    What should be done when a garnishee order is received against a joint account and mentions only one of the joint account holders?

    <p>Reference should be made to the Head Office seeking their instructions</p> Signup and view all the answers

    What is the status of the amount in a trust account?

    <p>It is a separate asset, not attachable by the garnishee order</p> Signup and view all the answers

    What is the effect of a garnishee order on a joint account?

    <p>Only the portion belonging to the judgment debtor is attached</p> Signup and view all the answers

    What is the primary purpose of a negotiable instrument?

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

    What does a negotiable instrument literally mean?

    <p>A document transferable by delivery</p> Signup and view all the answers

    What is the characteristic of a negotiable instrument similar to money?

    <p>It can be transferred by delivery or by endorsement and delivery</p> Signup and view all the answers

    What does sec-13 of Negotiable Instrument Act 1881 state?

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

    What is the term for the person who draws a bill?

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

    What is the primary characteristic of a negotiable instrument?

    <p>It is transferable by delivery or by endorsement and delivery</p> Signup and view all the answers

    What is a characteristic of a cheque that makes it a popular mode of payment?

    <p>The transfer cost is very low and the possibility of loss is minimum</p> Signup and view all the answers

    What is a characteristic of a negotiable instrument?

    <p>It is transferable from hand to hand by way of negotiation</p> Signup and view all the answers

    What is included in the definition of 'material alteration' in relation to a cheque?

    <p>Any alteration of the date, the sum, or any other material detail</p> Signup and view all the answers

    What is the primary function of a cheque?

    <p>To facilitate money transactions</p> Signup and view all the answers

    Who is the person to whom the amount of a cheque is payable?

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

    What is a characteristic that makes a cheque a commercial and safe method of money transaction?

    <p>Low transfer cost and low possibility of loss</p> Signup and view all the answers

    What is a characteristic of a holder in due course?

    <p>He can sue in his own name against all the prior parties.</p> Signup and view all the answers

    What is the main characteristic of a Promissory Note?

    <p>It contains an unconditional undertaking.</p> Signup and view all the answers

    What is the primary characteristic of a Bill of Exchange?

    <p>It contains an unconditional order.</p> Signup and view all the answers

    What is the effect of a defective title of the transferor on the transferee's title if the transferee can prove himself as a holder in due course?

    <p>The transferee's title is not affected.</p> Signup and view all the answers

    Who is the person who gets the money in a Bill of Exchange?

    <p>The bearer of the instrument.</p> Signup and view all the answers

    What is the relationship between the maker and the payee in a Promissory Note?

    <p>The maker is the debtor, and the payee is the creditor.</p> Signup and view all the answers

    What type of instruments are mainly discussed in Chapter 4 of the manual?

    <p>Negotiable Instruments</p> Signup and view all the answers

    What are the features of Negotiable Instruments discussed in the manual?

    <p>Features and characteristics</p> Signup and view all the answers

    What is the main topic of Chapter 4 in the manual?

    <p>Negotiable Instruments</p> Signup and view all the answers

    What aspects of banking are covered in the manual?

    <p>General banking activities, risk issues, and capacity development</p> Signup and view all the answers

    How many chapters are there in the manual?

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

    What is discussed in Chapter 5 of the manual?

    <p>Clearing and Collection of Instruments</p> Signup and view all the answers

    What is the primary characteristic of a time deposit?

    <p>It has a fixed period and rate of interest</p> Signup and view all the answers

    What is required to open an account with a bank?

    <p>A valid ID, proof of address, a specimen signature card, a KYC form, and a photograph</p> Signup and view all the answers

    What is the purpose of a Know Your Customer (KYC) form?

    <p>To verify the customer's identity</p> Signup and view all the answers

    What type of documents are required to open a deposit account?

    <p>A valid ID, proof of address, a specimen signature card, a KYC form, and other necessary documents</p> Signup and view all the answers

    What is the relationship between the banker and the customer when opening a deposit account?

    <p>A contractual relationship</p> Signup and view all the answers

    What is the primary characteristic of a fixed deposit?

    <p>It has a fixed period and rate of interest</p> Signup and view all the answers

    What is the primary function of deposit mobilization in banking?

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

    What is the main source of funds for banks?

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

    What type of deposits have a fixed period and rate of interest?

    <p>Fixed Deposits</p> Signup and view all the answers

    Why are banks introducing several deposit schemes?

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

    What is a necessary document for opening a deposit account?

    <p>All of the above</p> Signup and view all the answers

    What is being placed into a banking institution for safekeeping?

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

    What is the primary purpose of banks opening branches across the country?

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

    Who can open an account with the bank?

    <p>Any person competent to contract</p> Signup and view all the answers

    What is a necessary element in a valid contract for opening a deposit account?

    <p>All the essential features of a valid contract</p> Signup and view all the answers

    What type of deposits may have a large portion of savings deposits?

    <p>Time Deposits</p> Signup and view all the answers

    Who can open a Savings Bank account?

    <p>Adult individuals, jointly, illiterate persons, and minors after observing certain formalities</p> Signup and view all the answers

    What is the limit of withdrawals allowed per week from a Savings Bank account?

    <p>Twice a week</p> Signup and view all the answers

    What is the minimum balance required to maintain in a Savings Bank account to earn interest?

    <p>Tk. 500</p> Signup and view all the answers

    What is the frequency of interest payment on a Savings Bank account?

    <p>Half-yearly on June and December</p> Signup and view all the answers

    What is one of the customer benefits of having a Savings Bank account?

    <p>Wide network of branches and utility payment services</p> Signup and view all the answers

    What happens when a cheque is presented for payment in a dormant account?

    <p>It is referred to the Manager/Authorized Officer of the account Branch.</p> Signup and view all the answers

    How is an account reactivated after being dormant?

    <p>By the customer initiating a debit to the account.</p> Signup and view all the answers

    What happens to an account when the account holder passes away?

    <p>The account is stopped and termed 'deceased account'.</p> Signup and view all the answers

    How is interest applied to a deceased account?

    <p>It is paid up to the date of withdrawal or closing.</p> Signup and view all the answers

    Who is responsible for verifying the genuineness of a cheque presented in a dormant account?

    <p>The Manager/Authorized Officer of the account Branch.</p> Signup and view all the answers

    What documents are required to open a bank account?

    <p>Account Opening Form, Specimen Signature Card, and Mandate</p> Signup and view all the answers

    What is the purpose of KYC standards in banking?

    <p>To reduce money laundering and terrorist financing</p> Signup and view all the answers

    What is the purpose of a Mandate in banking?

    <p>To authorize persons to operate the account</p> Signup and view all the answers

    Why is it important to obtain identification documents from customers?

    <p>To verify customer identity</p> Signup and view all the answers

    What does KYC refer to in banking?

    <p>Knowing a customer physically and financially</p> Signup and view all the answers

    What is required to obtain from the account holder to ensure they do not operate the account unless they personally come to the bank?

    <p>A letter of undertaking</p> Signup and view all the answers

    What should be obtained from the introducer when opening an account for a person who cannot sign?

    <p>An attested thumb impression</p> Signup and view all the answers

    What should be recorded by the Manager/Sub-Manager on the back of the cheque?

    <p>A certificate to this effect</p> Signup and view all the answers

    What is required to be obtained when opening an account for a local authority or municipal corporation?

    <p>A copy of the status or any other law by which the body was created and is governed</p> Signup and view all the answers

    What should be taken to see that no cheque bearing thumb impression and presented through clearing is paid by the Branch?

    <p>Precautionary measures</p> Signup and view all the answers

    What happens to interest in a term deposit account when it is withdrawn prematurely?

    <p>It is paid at the rate applicable for the relevant TDR</p> Signup and view all the answers

    What is the purpose of nominating a person in a bank deposit account?

    <p>To receive the benefit in case of death of the account holder</p> Signup and view all the answers

    How many nominees can be appointed to a bank deposit account?

    <p>One or more</p> Signup and view all the answers

    What is the interest rate applicable for the period beyond maturity in a term deposit account?

    <p>Rate applicable for Savings Bank Accounts</p> Signup and view all the answers

    What is the status of a term deposit account when it is withdrawn after maturity?

    <p>Encashment beyond maturity</p> Signup and view all the answers

    Who can appoint a nominee to a bank deposit account?

    <p>Account holders with individual or joint names</p> Signup and view all the answers

    What is the interest rate applicable for a term deposit account up to the date of maturity?

    <p>Rate applicable for the relevant TDR</p> Signup and view all the answers

    What happens when a term deposit account is withdrawn before maturity?

    <p>Penal interest is recovered</p> Signup and view all the answers

    What is the role of a nominee in a bank deposit account?

    <p>To receive the benefit in case of death of the account holder</p> Signup and view all the answers

    What is the consequence of premature encashment of a term deposit account?

    <p>Penal interest is recovered and interest is paid up to the date of withdrawal</p> Signup and view all the answers

    What is the primary concern of banks in terms of malpractices?

    <p>Fraud and money laundering</p> Signup and view all the answers

    What measures have been taken to address the challenge of malpractices in general banking?

    <p>Increased stringent compliance requirements</p> Signup and view all the answers

    Why are banks considered more fragile than non-financial organizations?

    <p>Due to malpractices and non-compliance</p> Signup and view all the answers

    What is a critical challenge of general banking?

    <p>Malpractices and fraudulent activities</p> Signup and view all the answers

    What should receive adequate attention from policy makers in general banking?

    <p>All associated risks of general banking</p> Signup and view all the answers

    What is a crucial aspect of general banking that senior management should possess?

    <p>Skills on risk management and capacity development</p> Signup and view all the answers

    What is the primary function of the General Banking Department?

    <p>To serve as the direct customer service center</p> Signup and view all the answers

    Why is capacity development of bank officials crucial in general banking?

    <p>To minimize risks in general banking</p> Signup and view all the answers

    What is the significance of having specialized people in general banking?

    <p>To facilitate general banking effectively</p> Signup and view all the answers

    What is the role of senior bankers in general banking?

    <p>To guide desk level bank officials</p> Signup and view all the answers

    Which Act is relevant to partnerships in the context of general banking?

    <p>The Partnership Act, 1932</p> Signup and view all the answers

    Which Act is relevant to the creation of a trust in the context of general banking?

    <p>The Trust Act, 1882</p> Signup and view all the answers

    Which section of the Negotiable Instrument Act 1881 deals with MATERIAL ALTERATION?

    <p>Sec-13</p> Signup and view all the answers

    What is the main theme of Chapter 10 in the manual?

    <p>Laws and Regulations related to General Banking</p> Signup and view all the answers

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

    <p>To protect customers' deposit and secrecy</p> Signup and view all the answers

    What is the characteristic of a banker-customer relationship?

    <p>Based on trust and good faith</p> Signup and view all the answers

    Which Act is relevant to the creation of a company in the context of general banking?

    <p>The Companies Act, 1994</p> Signup and view all the answers

    What is the supreme responsibility of a bank?

    <p>To protect customers' deposit and secrecy</p> Signup and view all the answers

    What is the significance of commercial banks in economic development?

    <p>They are necessary for the development of the whole banking system</p> Signup and view all the answers

    What is the role of a bank in the economy?

    <p>A financial intermediary</p> Signup and view all the answers

    What is the main focus of Chapter 4 in the manual?

    <p>Negotiable Instruments</p> Signup and view all the answers

    What is discussed in Chapter 5 of the manual?

    <p>Clearing and Collection of Instruments: BACH, BACPS, Cash and vault managements</p> Signup and view all the answers

    What is covered in Chapter 6 of the manual?

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

    What is the target audience of the manual?

    <p>Relatively senior level bank executives</p> Signup and view all the answers

    How many chapters are in the manual?

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

    What is the primary function of commercial banks?

    <p>Mobilize deposits to productive fields</p> Signup and view all the answers

    What is the role of the General Banking department?

    <p>To link with all other departments</p> Signup and view all the answers

    Why is it important for bank employees to keep themselves updated with new skills and knowledge?

    <p>To handle customer queries effectively</p> Signup and view all the answers

    What is the current trend in the banking industry?

    <p>Banks are transforming themselves with a focus on knowledge</p> Signup and view all the answers

    What is the importance of general banking in the economy?

    <p>It helps to activate the entire economic sector</p> Signup and view all the answers

    What is the primary objective of Customer Due Diligence (CDD)?

    <p>To understand who the customers are</p> Signup and view all the answers

    What is the purpose of Enhanced Due Diligence (EDD)?

    <p>To monitor high-risk customers</p> Signup and view all the answers

    What is the main purpose of the MLPA, 2012?

    <p>To prevent money laundering</p> Signup and view all the answers

    What is the main purpose of the ATA, 2009?

    <p>To prevent terrorist financing</p> Signup and view all the answers

    What should banks consider when implementing CDD measures?

    <p>All of the above</p> Signup and view all the answers

    What is the primary objective of Customer Know Your Customer (KYC) procedure?

    <p>To verify customer identity</p> Signup and view all the answers

    What is the purpose of CDD obligations under legislation and regulation?

    <p>To prevent money laundering</p> Signup and view all the answers

    What should banks do to demonstrate compliance with CDD measures?

    <p>Put in place risk-sensitive CDD measures</p> Signup and view all the answers

    What is the primary purpose of transaction monitoring?

    <p>To detect suspicious transactions</p> Signup and view all the answers

    What should banks consider when implementing risk-sensitive CDD measures?

    <p>All of the above</p> Signup and view all the answers

    Which department is considered as the direct customer service center in a bank?

    <p>General Banking Department</p> Signup and view all the answers

    What is crucial in general banking alongside ensuring customer satisfaction?

    <p>Efficiency level of the bankers with due compliance of the laws and procedures</p> Signup and view all the answers

    What is essential for banks to minimize risks in general banking and establish credibility?

    <p>Specialized people with adequate knowledge base and skills</p> Signup and view all the answers

    Why is capacity development of bank officials important in general banking?

    <p>To ensure compliance with laws and regulations</p> Signup and view all the answers

    What is essential for guiding desk-level bank officials in general banking?

    <p>A group of senior bankers with adequate knowledge and skills</p> Signup and view all the answers

    What is the primary focus of Chapter 10 of the manual?

    <p>Laws and Regulations Related to General Banking</p> Signup and view all the answers

    What is the characteristic of a banker-customer relationship?

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

    What is the significance of commercial banks in economic development?

    <p>They act as financial intermediaries</p> Signup and view all the answers

    What is the role of a bank in protecting customers' deposits?

    <p>To protect secrecy and maintain utmost good faith</p> Signup and view all the answers

    What is the key aspect of a bank's dealings with customers?

    <p>Impartiality and non-discrimination</p> Signup and view all the answers

    What is a crucial aspect of general banking that senior management should possess?

    <p>Ability to manage different areas of general banking</p> Signup and view all the answers

    What is a major challenge faced by general banking institutions?

    <p>Malpractices and fraudulent activities</p> Signup and view all the answers

    Why are banks considered more fragile than non-financial organizations?

    <p>Because they are widely perceived to be more fragile</p> Signup and view all the answers

    What has been done to handle the challenges of malpractices and fraud in general banking?

    <p>Implementing stricter compliance requirements</p> Signup and view all the answers

    What should receive adequate attention from policy makers in general banking?

    <p>All associated risks of general banking</p> Signup and view all the answers

    Which Act of 1991 is relevant to general banking in Bangladesh?

    <p>The Bank Companies Act, 1991</p> Signup and view all the answers

    Which section of the Contract Act, 1872 is relevant to general banking?

    <p>Section 13</p> Signup and view all the answers

    What is discussed in Chapter 10 of the manual?

    <p>Laws and Regulations related to General Banking</p> Signup and view all the answers

    Which Act of 1872 is relevant to contracts in general banking?

    <p>The Contract Act, 1872</p> Signup and view all the answers

    Which Act of 1932 is relevant to partnerships in general banking?

    <p>The Partnership Act, 1932</p> Signup and view all the answers

    Which Act is relevant to negotiable instruments in general banking?

    <p>Negotiable Instrument Act 1881</p> Signup and view all the answers

    What is the significance of material alteration in relation to a cheque?

    <p>It makes the cheque invalid</p> Signup and view all the answers

    What is the primary purpose of Know Your Customer (KYC) form?

    <p>To verify customer identity</p> Signup and view all the answers

    Which section of the Negotiable Instrument Act 1881 deals with material alteration?

    <p>Section 138</p> Signup and view all the answers

    What is the primary right of a holder in due course?

    <p>To sue the drawer of the cheque</p> Signup and view all the answers

    What is the primary function of commercial banks in the economy?

    <p>To mobilize deposits to the productive fields to activate the entire economic sector</p> Signup and view all the answers

    What is the significance of the General Banking department in a financial institution?

    <p>It is linked to all other departments and is a vital part of the institution</p> Signup and view all the answers

    What is the need for today's bank employees in the context of the rapidly changing world of banking and finance?