Q. Which of the following activities cannot be undertaken by a Payments Bank?
✅ Correct Answer: (C)
Lending Money
Banking and Finance 3 MCQs and Notes
Q. How many branches of Payment banks must be in the unbanked rural area?
✅ Correct Answer: (A)
25%
Q. How many Payment banks were approved by RBI in 2015?
✅ Correct Answer: (B)
11
Q. Section 45 of the Negotiable instruments Act, has imposed upon the banker the obligation to honour customers cheques.
✅ Correct Answer: (B)
False
Q. The payment should be made when the cheques are presented for payment within a reasonable time after being drawn and during banking hours.
✅ Correct Answer: (A)
True
Q. In case of sufficiency of funds in the account of the drawer which can be properly used to pay the cheque, the banker must pay the cheque when required to do so.
✅ Correct Answer: (A)
True
Q. The paying banker should pay the cheque when there is restriction imposed on the payment by the drawer or by the law.
✅ Correct Answer: (B)
False
Q. The paying banker is expected to pay the cheque to the genuine payee as per the direction of the drawer.
✅ Correct Answer: (A)
True
Q. Protection to the Paying Bank in case of alteration in a cheque is available under.
✅ Correct Answer: (B)
Sec 89 of NI act
Q. Which banker gets protection under section 85 of Negotiable Instrument Act, 1881?
✅ Correct Answer: (B)
Paying banker.