10 Questions
What are demand liabilities according to Section 5(f)?
Liabilities to be met on demand
Under Section 6(1), what is included in the banking business as defined?
Dealing in foreign exchange
What does Section 5(n) define as Secured Loans and Advances?
Loans secured by assets of equal or greater value than the loan amount
According to Section 6(2), what restriction is placed on banking companies?
They are restricted from engaging in any business other than those listed in Section 6(1)
Who is allowed to use terms like Bank, Banker, Banking or Banking Company according to the text?
Only banking companies
What is the maximum period a Chairman/MD of a banking company can hold office for?
5 years
What is the minimum paid-up capital required for foreign banks operating in Bombay or Calcutta?
Rs. 15 lakh
How much of its profits must a bank transfer to the reserve fund as per Section 17(1)?
20%
What restriction does Section 19(2) place on banks regarding holding shares in a company?
Not exceeding 30% of paid-up share capital
What is the consequence stated in Section 21A regarding transactions between a bank and its debtor?
Transactions cannot be renegotiated
Test your knowledge on securities under the Indian Trust Act and banking concepts such as acceptance of deposits and liabilities. Explore questions related to approved securities, trustee investments, banking regulations, and different types of liabilities.
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