ni act

Cheques that issued to customers who are offered the facility of anywhere banking are 1234

Section 123 of the NI ACT defines

Special crossing/// general crossing

Who can cross the cheque?

124

The cheque number and code number of the bank and branch are printed in __________________________to facilitate processing of cheques through automated reader sorter machines.

Magnetic ink

If a cheque is crossed and restricted, its mode of payment is

Treated as a condition//// Not treated as a condition.

A person who becomes a holder of a negotiable instrument, for valuable consideration and good faith and not knowing that the transferor did not have good title to it; is called _________.

Bearer in due course///

When a cheque being presented for payment, the following needs to be checked to confirm that the cheque is in order

12347

In which year was the NI ACT passed?

1881

The payee of the order can make the instrument payable to another person by writing on the back of the cheque `Pay Mr.x________ or order` and putting his signature below it. Such a notation on the back of the cheque is called an

Endorsement

If the drawees name is not mentioned in cheque it is

Invalid cheque

Which sec of NI Act requires that presentment for payment must be made on a working day within banking hours

Sec 75/// 4///

If the space is insufficient for endorsement, it may be done on a paper attached to the cheques. Such an attachment is called an __________-

2

The banker`s duty to honour cheques issued by the customer is limited by the following conditions

1234

What is the transferee or the `holder` of the instrument called

1

If a cheque is torn in one corner and is received from another bank, the presenting bank has to

put a stamp reading `Mutilation Guaranteed, Please Pay` and signed the guarantee, the cheque can be paid

The promise to pay should be unconditional

yes

The lenders take post dated cheques in repayment of the loan because of

Legal liability for non paymnet of cheques/// Criminal liability for non payment of cheques

What are the characteristics of negotiable instrument?

2-8///23467

Cheque containing impossible dates becomes payable on the last day ____________

Relevant month

What is cheque?

A cheque is an order from the account holder to his bank to pay a certain sum of money to the person named in the cheque/// A cheque is an instruction from the account holder to his bank to pay a certain sum of money to the person named in the cheque

What has all the qualities of a negotiable instrument which is not listed in Negotiable Instrument Act?

A cheque//// A currency note

Current account holder can apply for bearer cheque book

true

What is usance promissory note?

If the promise is to pay after a certain period, say one month after the date of the promissory note or on a specific date in the future

Which of the following do not restrict the negotiability or transferability of the cheque

A cheque containing the words `negotiable`///

The cheques executed by a partner is always signed on behalf of the firm so as to bind the firm

When it is need/// 1

If accounts are jointly operated,the alterations should be signed by all the authorised signatories as per the operating instructions

True

Where is endorsement made?

1

The amounts of cheque in words and figures should tally

True

In case of Bills of exchange,the due date is calculated after adding______________of __days to the usance period

2

What is Promissory Notes?

An instrument in writing containing an unconditional promise signed by the maker to pay a certain sum of money to a certain person or to the bearer of the instrument

An order instrument can be transferred by endorsement and delivery whereasa a ________ instrument can be transferred by mere delivery

Bearer instrument

Any change, which alters the business effect of an instrument of cheque is called

Material alteration

A negotiable instrument must be

Unconditional

Who issues printed chequebooks for use by its customers?

Banks

The drawee of a cheque is__________

Bank

Mr.Rahul given a cheque dated 2nd March 2007, if presented for payment on 29th Sep 2007, then it is

4th option///

If the details of to whom or whose order the amount is to be paid, is mentioned under endorser

`Endorsement in full`.

The drawer is the person who makes and signs the promissory note

True

What are the methods to write a usance bill

124//14//4

The payee can give notice of dishonour within______days

30///15

All alterations on cheques should be authenticated by

Full signature of the drawer of the instrument

________ is defined as a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand?

cheque

What does the word `Account payee` means?

Direction to the collecting bank that the cheque should be collected only for the payee

The debtor is duty bound to make payment to the holder in due course who `presents` the instrument to him for payment

True

The elaborate enquiries has to be made by the bank or debtor before making the payment of the cheque

Not necessarily////// Necessary

Which of the following are the three negotiable instruments?

Promissory note, cheque, bill of exchange

______ is necessary when there is contract or agreement between two persons.

Consideration

____________ and networking makes it possible to access data relating to customers from any branch at any place

Centralisation

A stop payment request can be given by

23

State whether the statement is true or false A conditional promissory note or bill of exchange or cheque is a negotiable instrument

false

A usance promissory note has to be stamped by affixing non-judicial stamps of requisite value, as per __________Act

Stamp

To confirm the date of the cheque presented for payment,the bank has to check whether it is

123

When the amount of the cheque is large ,the bank asks for identity proof of the bearer or contact the drawer on the phone numbers available on bank records to confirm _______ of the cheque.

issuance

The duties of collecting banker can be

234

A crossed cheque can only be_____________to the bank account of the _________

Credited ,payee

In case of legal entities, the cheques should be signed for and on behalf of the entity. This is done by putting a ____________carrying the name of the entity and the position of the signatory

Original stamp///Rubber stamp

If both order or bearer is written on an instrument, it will be treated as

A bearer instrument

Stale cheque can be paid if the cheque is dated more than 6 months

No

Section 31 of the NI Act defines the duty of the paying banker to honour cheques issued by the ________ having sufficient funds available for payment

Drawer

A bill of exchange contains an

Order////

Banks make physical presentation of bills

False

Partners of a firm are called

Pillar of the firm////

If a cheque is crossed, the paying banker cannot pay cash across the counter

True

If a cheque is dishonoured, ___________ action can be taken against the drawer

Criminal

If the bills of exchange is accepted it has to be presented to________ on due date for the payment

Drawee

The requirement of endorsement should be

Unbroken and regular

Without the signature ,the cheque is

Not valid

When a cheque is made payable to Mr.X or bearer, the payee can transfer the instrument to another person by merely handing it over to him or mere `delivery`.

true

The date in the promissory note should be in left corner

FALSE

The procedure of re-presenting the bill to the drawee through a lawyer and getting the fact of dishonour confirmed is called

Protest

If the signature is forged, then no statutory protection is available to the bank for payment in due course. This is accordance with _______ (section of ACT)?

Sec 85

An acknowledgement is issued to the customer giving the date and time of receiving the instruction to prevent any dispute in future

True

Mr.Hari issues a cheque to Mr.Ram and it is dishonoured, hence here Ram can file a ________against Hari

Suit

A cheque crossed specially to a bank can be collected only by that bank

true

What is meant by crossing of cheque?

Deed//// Agreement /// Endorsement

The payee can treat the bill as ___________ by non-acceptance, if the bill is not accepted within 48 hours.

Honoured///

______________is checked against the numbers of the cheques issued to the customer at the time of payment,

The serial number of the cheque

Proving lack of consideration is on the drawer which can prompt the lender to take _________ cheques from their borrowers

True

A payees name has to be necessarily specified in cheques

yes

A cheque is a

Demand bills of exchange

The undated cheque is not valid but the bank can write the date on the cheque

No

In the promissory note, if `monthly rests` is not paid immediately,______________will be payable by the drawer

Compound interest

Who can `transfer` an order instrument by èndorsing` it?

payee

In case of Death, insolvency or insanity of the drawer before date of cheque,postdated cheque should not be paid

True

A person who draws a Bill of exchange is known as the ___________

Drawer

If a bill is a demand or usance instrument, a cheque will be

Demand instrument

Proving lack of consideration is on the drawer which can prompt the lender to take _________ cheques from their borrowers

Post dated

Who issues the currency notes?

The Governor of the Reserve Bank of India

What is the penalty given to drawer in as per Section 138, when the cheque is dishonoured?

The drawer may be imprisoned for up to two year or asked to pay a fine of up to twice the amount of the cheque or both//// The drawer may be imprisoned for up to one year or asked to pay a fine of up to twice the amount of the cheque or both

State true /false When a cheque is crossed to more than one banker, the paying banker will refuse payment

true

It is necessary to check if the signature corresponds to the signature on record by the banker

True

Who signs the promissory notes?

Signed by the promissory or the person who makes promise

Choose the types of material alteration from the following

1345

The printed words on the cheques ,the words òr order` or òr bearer` are printed by the ________

Bank

Who should date the Cheque?

Drawer

If a bearer cheque is missing,and the person who found out in favour of someone else, delivers it to a shop keeper, in payment of some purchase, the shop keeper becomes a holder in due course in case he did not know that the cheque had been missing

The debtor is duty bound to make payment to the holder in due course who `presents` the instrument to him for payment

The duties of collecting banker can be

234

Current account holder`s cheques are printed with the word____________

`Or order`

If the details of to whom or whose order the amount is to be paid, is mentioned under endorser signature, the endorsement is called an ____________________

`Endorsement in full`.

The promise to pay whenever payee demands payment, is called

Demand promissory note

State some of the reasons for return of cheque

14


A bearer instrument

The elaborate enquiries has to be made by the bank or debtor before making the payment of the cheque

Any one holding the bearer instrument, can claim the amount from the drawee.

If the endorser merely signs his name without specifying the name of the person to whom payment must be made, it is called

Blank endorsement

What is meant by crossing of cheque?

Putting two parallel lines on the left top corner of the face of the cheque

An instrument in writing, containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument is called

Cheque//bill of exchange

Who signs in the cheque?

Drawer

A payee should not be a certain person True or false

False

What are the advantages of cross cheques?

13

The usual form of signature in case of limited companies is as follows

For and on behalf of Company`s name (signed) Director

What amounts to material alteration?

A holder cannot delete or cancel an existing crossing

In the bills of exchange, person liable to pay the money is called as the

Drawee

The promissor is maker and the promisee is called as payee.The former is________while the latter is the ___________*

Creditor and debtor////

In what all ways a customer can stop the payment of cheque?

A n b//// By consent of payee //// By written request

In case of Bills of exchange,a usance bill has to be stamped with __________________ as per stamp act.

Non Judicial stamps

If the account is operated by an authorized agent then cheque should contain

An exact signature of agent//////

What words are printed on the cheques issued to savings account customers ?

`Or bearer`

If the cheque is mutilated or torn by accident, the drawer has to confirm in ________________that the cheque can be paid

24

In case of Bills of exchange,the due date is calculated after adding______________of __days to the usance period

Grace period ,3

Payment of a cheque after banking hours is a payment in due course

no

MICR stands for

14

A usance bill has to be `accepted` by the drawee or debtor before it becomes _________

valid

Transferring of ownership, free from defect, through endorsement and delivery in the case of an order instrument and mere delivery in the case of a bearer instrument is called

Negotiability

If a person promises to supply goods, it is not a promissory note

True,it should be to pay money to another person not goods

If cash payments are of Rs 10 lakhs and above, the bank has to obtain a ________ from the customer stating the purpose of the withdrawal.

None///consent

The provision of Sec 138 of the NI ACT came into effect from ___________

1.4.1989

In case of Bills of exchange, the drawer is called the________and in case of promissory notes the drawer is called the______himself

Creditor and debtor

What are the words, `for value received` in a promissory note and bill of exchange considered as

Affirmation by the drawer

As per NI Act, cheques are not payable only at the branch where the account is held

True

Who gets `discharged` from his obligations on payment to the holder in due course?

The Debtor

Which type of cheques do not grant an authority to debit the account of the customer till the date arrives?

POST dated

If the bill is on due date the payee of a usance bill will need a confirmation from the _________

Debtor

Which sections of the NI Act defines crossing?

Section 123 and 124

To whom the promissory note payment is to be made?

Drawer...///(maker) 1

Special crossing is defined in Sec___of the NI ACT

Sec 125/// 1

What is forgery of the cheque?

If any person other than the customer himself, without his specific authority to sign, signs by copying customer`s signature with the intention to prejudice that customer


4

When a cheque is made payable to Mr.X or bearer, the payee can transfer the instrument to another person by merely handing it over to him or mere `delivery`.

True

Who has to give `notice of dishonour` to drawer in case of dishonour by non payment

Creditor/// Banker///

Bearer cheques are payable to the person who is in ____________ of the instrument

14

Which of the features are not considered as condition?

13//1

A holder can delete or cancel an existing crossing

No

Who gets a better title than the transferor

A holder in due course

If a cheque is stopped by the drawer,the bank cannot make___________

Payment of cheque

A holder of a cheque putting a date on an undated cheque is termed as alteration of cheque

No

______________is checked against the numbers of the cheques issued to the customer at the time of payment,

The serial number of the cheque

If the amount stated in the cheque is different in words and figures, the amount in words cannot be paid

true

-What is post dated cheque?

-The promissor is maker and the promisee is called as payee.The former is________while the latter is the ___________

-What is the penalty given to drawer in as per Section 138, when the cheque is dishonoured?

-Who has to give `notice of dishonour` to drawer in case of dishonour by non payment

-The requirement of endorsement should be

-The original creditor cannot claim the amount from the debtor if the ___________has been made to the holder in due course

-The elaborate enquiries has to


-A person who becomes a holder of a negotiable instrument, for valuable consideration and good faith and not knowing that the transferor did not have good title to it; is called _________.

-Mr.Rahul given a cheque dated 2nd March 2007, if presented for payment on 29th Sep 2007, then it is

-If the amount stated in the cheque is different in words and figures, the amount in words cannot be paid

-What is not required for transfering the bearer instrument?

-If cash payments are of Rs 10 lakhs and above, the bank has to


-A person who becomes a holder of a negotiable instrument, for valuable consideration and good faith and not knowing that the transferor did not have good title to it; is called _________.

-Mr.Rahul given a cheque dated 2nd March 2007, if presented for payment on 29th Sep 2007, then it is

-If the amount stated in the cheque is different in words and figures, the amount in words cannot be paid


-If cash payments are of Rs 10 lakhs and above, the bank has to obtain a ________ from the customer stating the purpose of the withdrawal.

-Which sec of NI Act requires that presentment for payment must be made on a working day within banking hours

-What is post dated cheque?

---------------------------------------------------------------------------------------------------------------------------

Section: 1. Negotiable Instruments Act

----------------------------------------------------------------------------------------------------------------------------

-If cash payments are of Rs 10 lakhs and above, the bank has to obtain a ________ from the customer stating the purpose of the withdrawal.

-If a cheque is crossed and restricted, its mode of payment is

-If the account is operated by an authorized agent then cheque should contain

-The promissor is maker and the promisee is called as payee.The former is________while the latter is the ___________

-The payee can treat the bill as ___________ by non-acceptance, if the bill is not accepted within 48 hours.

-If both order or bearer is written on an instrument, it will be treated as

-What is the penalty given to drawer in as per Section 138, when the cheque is dishonoured?


-The debtor is duty bound to make payment to the holder in due course who `presents` the instrument to him for payment

ni act

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