Thursday, 3 March 2016

Q A BANKING SERIES MAR 03

Q:Define Demand Deposits .
A:Deposits which are withdrawn on demand by customers.E.g. savings bank and current account deposits.
Q:Define Either or Survivor .
A:Refers to operation of the account opened in two names with a bank. It means that any one of the account holders have powers to withdraw money from the account, issue cheques, give stop payment instructions etc. In the event of death of one of the account holder, the surviving account holder gets all the powers of operation.
Q:Define Endorsement .
A:When a Negotiable Instrument contains, on the back of the instrument an endorsement, signed by the holder or payee of an order instrument, transferring the title to the other person, it is called endorsement.
Q:Discuss forms of Endorsements.
A:Endorsement in Blank : Where the name of the endorsee or transferee is not mentioned on the instrument.
Endorsement in Full : Where the name of the endorsee or transferee appears on the instrument while making endorsement.
Restrictive Endorsement:An endorsement is restrictive when it prohibits further negotiation of a negotiable instrument. . For example, if a cheque is endorsed as ‘Pay to X only’, it cannot be negotiated further.
Conditional Endorsement (Qualified Endorsement):This is not a common form of endorsement. It may take many forms. It may either limit the liability of the endorser or create some liability on the endorsee to receive payment of the instrument. That is, an endorsement may be preceded by certain condition, which should have been fulfilled by the endorsee, for obtaining payment.
Sans Recourse endorsement: It is an endorsement which limits the Liability of the endorser. The effect of this endorsement is, to render the endorser free from all liability to any subsequent holder.
In our country the words, ‘without recourse’ are mostly used instead of ‘Sans recourse.’
Q:What is FMC.
A:Forward Markets Commission (FMC) (headquartered at Mumbai), is a regulatory authority which is overseen by the Ministry of Finance, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952.
Q:Define Factoring .
A: Business of buying trade debts at a discount and making a profit when debt is realized and also taking over collection of trade debts at agreed prices.


Anil Aggarwal
Owner & Manager at Anil Aggarwal Coaching
(A proprietorship concern for IBPS exam guidance and Bank Interview preparation)
 Mobile:                               +91 9811340788
E-mail ID:         anilakshita@yahoo.co.in
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