South Indian Bank PROBATIONARY LEGAL OFFICERS (PLO) detail syllabus and exam pattern

MODE OF SELECTION

Online Test and Personal Interview

1- Initial shortlisting will be done based on the marks scored in the Online Test

2- Final Selection will be based on the consolidated marks obtained for Online Test and Personal Interview.

3- Bank reserves the right to make required modifications in the selection process considering the number of applications for the post.

EXAM PATTERN

1-There will be ¼ or 0.25 penalty for wrong answers in objective test.there will be no any negative marking for subjective test.

2-Tests will be made available only in English

Legal Aspects of Banking

01. In the case of a bearer cheque, the identity is not necessary

02. When an order cheque is endorsed in blank, it becomes payable to bearer and transferable by mere delivery

03. A cheque crossed “Not Negotiable”, is still transferable

04. As per section 138 of Negotiable Instruments Act, there is a provision of penalty when the cheque issued in discharge of a liability is dishonoured due to insufficient funds in the account, subject to the condition that the cheque has been presented to the bank within a period of three months and is not honoured due to insufficient funds

05. A fixed deposit receipt cannot be endorsed

06. A cheque is presented in an account but there is no sufficient balance to meet the same. The cheque will be returned with the remarks – insufficient funds

07. The cheque on behalf of a partnership firm can be stopped for payment by any partner whether authorized to operate the account or not

08. The marginal farmer is one who possesses agriculture land upto 1.25 acres of irrigated land or 2.5 acres of non-irrigated land

09. Registration of charge is not required in the case of pledge, lien, set-off and appropriation

10. Loans for construction of godown for own use of farmers is not part of indirect finance to agriculture

11. Olericulture is cultivation of vegetables

12. Agriculture labourer is a labourer whose income from agriculture is more than 50%

13. Nostro account is an account of a bank established in India with a Foreign Bank in another country and the account is maintained in foreign currency

14. Resident Foreign Currency (RFC) account scheme is available for home returned Non resident Indians

15. Under packing credit limit, the extent of finance is computed on the basis of Freight on Board basis

16. Forfeiting refers to discounting of export bill without recourse to the seller

17. In an overdraft account, when the death notice of partner is received the bank should stop the operations to avoid application of Clayton’s case

18. A company is not dissolved by lunacy of a director or bankruptcy of a director or death of a director

19. In the case of insolvency, the banker’s obligation to honour customer cheques comes to an end when the customer is adjudged insolvent

20. A lien is the right to retain goods or securities belonging to a debtor until he has discharged a debt due to the retainer thereof

21. The shareholders of a Private Limited Company cannot transfer the shares to any other individual other than the shareholders of the company

22. The rule in Clayton’s case applies in the case of running accounts having debit balances in respect of partnership accounts

23. The term banking has been defined in Banking Regulation act – 1949

24. Bills drawn in respect of goods delivered by parties to various Government/Semi Government departments are known as supply bills

25. Goiporia committee has made the recommendations – Commencement of employee working hours should be 15 minutes before commencement of business hours

26. Banking companies are registered under – Banking Regulation act – 1949

27. Bipartite settlements are registered under Industrial Disputes Act

28. Financial products, whose prices are derived from the price of the underlying currency, interest rate, stocks etc. are called as– securitization

29. Revaluation reserves is a part of subsidiary capital/tier II capital

30. The committee headed by Y V Reddy –revised the concept of liquidity and monetary aggregates

31. Verma Committee was appointed to examine the restructuring of weak banks

32. The process through which any member-owned organization becomes a shareholder-owned company is called demutualization

33. Official Language deals with the following articles of constitution – 343 to 351

34. Hindi was declared as the official language of the union on 14-09-1949

35. The system of electronic funds transfer was suggested by the committee headed by – B D Shah

36. INFINET is – RBI’s VSAT based communication system

37. The negotiable instruments act is applicable for the entire part of the country

38. If the cheque is drawn in favour of “Mother God” or order, the cheque is to be returned with the reasons – “since drawn on fictitious name”

39. A cheque payable to Rohit is endorsed as follows – Pay to “Kabil on his marriage”. This endorsement is a conditional endorsement

40. The cheque crossed – “account payee” drawn in favour of Mr Brij Nand is presented by Raman in his account and in this case the bank should not make the payment

41. The following are not negotiable instruments – airway bill, a currency note, a letter of credit and lorry receipt

42. Under section 25 of Negotiable Instruments Act, public holidays are declared by – the respective state governments by notifications in the official gazettes

43. Conversion means – not crediting the amount in the account of true owner

44. By “General Crossing”, we mean two transverse parallel lines on top left hand corner of a cheque

45. Forward exchange contract is an agreement where the foreign exchange is delivered at predetermined future date at a contracted date

46. Unless otherwise specified in the letter of credit, the insurance amount should be expressed in the currency of the letter of credit

47. On the death of the partner, bank opens a new account to rule-of the existing account to avoid application of Clayton’s case

48. Executor in banking means a person named by the deceased in his will for which probate is obtained

49. The partnership firm doing the banking business cannot have more than 10 partners and for other business, not more than 20 partners; otherwise it will become an illegal association. This is the condition as per Indian Companies act 1956.

50. The prospectus is an invitation to the public to subscribe to shares or debentures or deposits

51. According to the rule in Clayton’s case, the money paid in by a customer has to be applied towards adjustment in overdraft account in order of time in which the debits were incurred

52. Banking company is prohibited from undertaking business like trading of goods etc under – Banking Regulation act 1949

53. For availing remedy under section 138 of Negotiable Instruments act, the holder will have to give notice to the drawer within 30 days of return of the cheque

54. When a firm has branches at different places and wishes to avail the loan at all stations, the documents will be executed at its Head Office and sub limits will be allocated to branches at different places

55. In the case of any doubt about stamp duty, clarification can be sought from State Stamp Authority and Controller of stamp duty

56. Banks were nationalized under – Banking Companies (Acquisition and transfer of undertaking) act-1970

57. When an account shows debit balance, the banker is a creditor and when the account shows credit balance, the banker is the debtor

reasoning, General/ Economy/ Banking Awareness, Data Analysis & Interpretation, will be on banking pattern

case study example-

Finance is like Oil to the Engine of the Indian Economy

As finance is the grease and the oil that keeps the engine of any economy running, the BFSI sector assumes importance in this context. While the post-independence era witnessed many large private banks that were either family or community run as well as some government-owned banks, the nationalization of the banking sector in 1969 and the early 1970s meant that the government was the prime mover as far as banking and finance was concerned.

Becoming World Class in their Practices and Dealing with Crises

Now, the BFSI sector in India is in a position where it can compete with its peers abroad and elsewhere mainly due to the pioneering efforts of the first wave of post-liberalization banks such as HDFC and ICICI. No wonder that the Indian BFSI sector has become a dream job destination for millions of graduates in the technical and managerial institutes.

Having said that, at present, the BFSI sector in India is in crisis due to its profligate lending practices during the boom years of the first decade of the 21st century. Indeed, concomitant with the growth of the Indian Economy and the blistering pace of capacity addition as well as booming industries, the banks and financial institutions threw caution to the winds and engaged in indiscriminate lending without doing their due diligence.

The Reserve Bank of India and Demonetization

No discussion on the Indian BFSI sector is complete without examining the role of the RBI, the country’s mandated regulator. Starting in its pre-independence and post independence periods of regulating the Indian BFSI sector to the privatization wave where it was tasked with maintaining the monetary policy and its preeminent role in safeguarding the Indian Economy from external shocks such as the GFC of 2008, the RBI has indeed done a stellar job of stewarding the Indian BFSI sector.

Having said that, its neutrality and independence have been questioned in recent years especially with the Demonetization measure, and this has worrying trends for the future of the Indian BFSI sector.

Indeed, Demonetization could be counted as the most radical measure as far as the Indian Economy in the post-independence era is concerned.

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