Negotiable Instruments Act 1881
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1. Under the Negotiable Instruments Act 1881, which of the following is NOT a negotiable instrument?
A. Promissory Note
B. Bill of Exchange
C. Cheque
D. Fixed Deposit Receipt ✓
Section 13 of NI Act defines negotiable instruments as Promissory Notes, Bills of Exchange, and Cheques. FDR is not a negotiable instrument.
2. KYC periodic update for high-risk customers must be done every:
A. 1 year
B. 2 years ✓
C. 5 years
D. 10 years
As per RBI KYC Master Direction, periodic KYC update timelines are: High risk - 2 years, Medium risk - 8 years, Low risk - 10 years.
3. An advance is classified as NPA when interest/principal remains overdue for more than:
A. 30 days
B. 60 days
C. 90 days ✓
D. 180 days
As per RBI IRAC norms, an advance becomes NPA when interest/principal remains overdue for more than 90 days (for term loans) or the account remains out of order for 90 days (for OD/CC).
4. The Banking Ombudsman Scheme is now replaced by:
A. Consumer Forum
B. RBI Integrated Ombudsman Scheme 2021 ✓
C. SEBI Grievance Redressal
D. Banking Codes Board
The RBI Integrated Ombudsman Scheme 2021 replaced the earlier Banking Ombudsman Scheme, NBFC Ombudsman Scheme, and Digital Transactions Ombudsman Scheme into a single unified scheme.
5. SARFAESI Act 2002 is applicable for secured loans above:
A. ₹50,000
B. ₹1 lakh ✓
C. ₹5 lakh
D. ₹20 lakh
SARFAESI Act applies to secured debts of ₹1 lakh and above. It allows banks to enforce security interest without court intervention for NPA recovery.