NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, BANGALORE

MBL I YEAR ANNUAL EXAMINATION (25TH JULY) 2020

PAPER II - BANKING LAW
Marks: 100
Instructions:
1. No clarifications can be sought on the Question Paper.
2. Bare Acts, notes, articles, books or any other material are not
permitted while writing the examination.
3. Students who opt for typing the exam will be given 4 Hours and an
additional 15 minutes for verification, downloading the question
paper and uploading the answer sheets.
4. Students who opt to hand write the exam will be given 3 Hours and
an additional 30 minutes for verification, downloading the question
paper and uploading the answer sheets.
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ANSWER ANY FIVE QUESTIONS. ALL QUESTIONS CARRY EQUAL MARKS

(5 X 20 = 100 MARKS)

1. How are Co-operative banks regulated in India? What legal reforms are
necessary to prevent Co-operative bank failures?

2. What are the different statutes regulating different categories of banking

institutions in India? Would you recommend a unified statute?

3. Evaluate which of the following are promissory notes?

1. Mr. Ashwin Patel, I owe you INR 1,00,000 from this date onwards;
2. Mr. Ashwin Patel ji, I have received from Amar Sinha INR 1,00,000 -
which I promise to pay on demand with interest;
3. INR 1.00 Lakhs balance due to you I am still indebted and do promise
to pay on demand;
4. I have received the deposit of INR 1,00,000 from Shri. Amerjit and
would be returning the same with necessary interest of 4% p.a., on
demand; and
5. I have received INR 1 Lakhs only, from Shri. Parmjit Kaur, which is a
commercial borrowing to supplement the working capital for my
establishment, and I will remain accountable to him for the same with
interest.

4. Write short notes on the following:

1. Legal status of demand draft, issued by Bank; and
2. Negotiable Instruments Act, 1881 - its application to local
instruments (or instruments written in local languages).

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5. What is a non performing asset (NPA)? Why they are to be reduced to a
manageable level from macro-economic point of view? In India what legal
strategies have been used to reduce the impact of NPAs?

6. What is the banker’s duty to maintain secrecy a of customer’s account?

Critically evaluate the law on the point, especially keeping in mind
developments in the domain of data protection (as well as technological
development in the banking sector).

7. Write short notes on the following:

1. Proceedings before Debt Recovery Tribunals; and
2. Legal status of 'introduction' while opening a bank account by the
new customer.

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