Name : Dasari Sudhir

Class: 3rd year V sem

Law Of Banking internal Imp Que Ans

Short Questions & Answers

1. E-Banking: Electronic banking refers to the use of electronic channels and

platforms for conducting various banking activities, such as online banking,
mobile banking, and ATM transactions.

2. Letter of Credit: A letter of credit is a financial document issued by a bank,

guaranteeing payment to a seller on behalf of the buyer, upon successful
completion of the terms and conditions of the sale.

3. Foreign Banks: Foreign banks are banks that are based in a country
different from the one they operate in. These banks have branches or
subsidiaries in multiple countries.

4. Primary Credit Societies: Primary Credit Societies are cooperative banks that
provide financial services to rural areas, primarily focusing on agricultural
credit and rural development.

5. NABARD: NABARD stands for National Bank for Agriculture and Rural
Development. It is a development financial institution in India that provides
credit and other assistance to promote agricultural and rural development.

6. SBI: SBI stands for State Bank of India. It is the largest public sector bank
in India, offering a wide range of banking products and services to individuals,
businesses, and institutions.

7. Relationship between Banker and Customer: The relationship between a

banker and customer is a contractual relationship based on mutual trust and
obligations. The bank provides various services to the customer, such as
accepting deposits, providing loans, and facilitating transactions.

8. Truncated Cheque: A truncated cheque is a form of cheque in which the

physical cheque is not presented to the bank for processing. Instead, an
electronic image of the cheque is transmitted for clearance.

9. Nationalisation of Banks: Nationalisation of banks refers to the process of

transferring ownership and control of banks from private entities to the
government. This process took place in India in 1969.

10. Definition of Bank: A bank is a financial institution that accepts deposits

from the public and provides various financial services, such as lending
money, facilitating transactions, and managing financial assets.

FILL IN THE BLANKS

1. Validity period of a cheque - 3 months

2. Definition of cheque - Written document for payment

Name : Dasari Sudhir
Class: 3rd year V sem
Law Of Banking internal Imp Que Ans
3. Mega Bank merger announced in the year - 2020

4. Canara Bank will merge with - Syndicate Bank

5. Which bank is the best example for a public sector bank - State Bank of India (SBI)

6. RBI of India was established in the year - 1935

7. RBI Act came into force in the year - 1934

8. If the customer is a creditor, the banker is called a - Debtor

9. Opening and maintaining various types of accounts come under - Core banking services

10. Letter of credit is generally issued in which type of transactions - International trade

11. The limitation period of a promissory note - 3 years

12. In which year did bank nationalization take place - 1969

13. The World Bank is derived from - International Bank for Reconstruction andDevelopment
(IBRD)

14. Using locker facility in a bank comes under which type of relationship - Custodial
relationship

15. Expand ATM - Automated Teller Machine

16. The person to whom the notice is endorsed is called - Endorsee

17. Imperial Bank of India was converted into - State Bank of India (SBI) in 1955.

18. Industrial Development Bank of India is called - IDBI Bank

19. Accepting deposits, advancing loans, come under the primary functioning of a bank

20. Banking Regulation Act - Regulation of banks in India

21. A cheque contains an unconditional order

22. Drawee means - Person or bank who makes payment in a cheque

23. General obligation of a banker - Maintain confidentiality and privacy of customer'saccount

information

24. Expand DCCP - Deposit and Credit Guarantee Corporation of India

25. Special customers are considered as - Priority customers

Disclaimer: Please note that I have prepared answers for assistance purposes
only and it may contain errors due to limited understanding of handwriting and
lack of time for verification. Please independently verify the information provided
and I have prepared answer only for questions that I received as important for
the internal examination by our classmates. If any question is not on this list
and If any of you find any mistakes kindly inform us in the group so that all
classmates can score well. Thank you.