BANKING 3RD SEMESTER

ASSIGNMENT DRIVE - SUMMER 2016

PROGRAM - MBA
SEMESTER - III
SUBJECT CODE & NAME - MA0036 & FINANCIAL SYSTEM & COMMERCIAL BANKING

Q.No 1 Illustrate the role of Trading System in the Securities Market. Explain margin trading
with examples.

Role of Trading System in the Securities Market

Margin Trading with examples 6+4=10

Answer:PLEASE

CONTACT

US

TO

GET

HELP

IN

FULLY

SOLVED

SMU

ASSIGNMENTS/SYNOPSIS/PROJECT REPORT/MODEL PAPERS MCQS.

CONTACT:
EMAIL ID=

mrinal833@gmail.com

PHONE NO=

(9706665232/9706665251)

WEBSITE=

http://www.smuassignmentandproject.com/

Q2 Explain the features of Commercial Papers as a money market instrument. Distinguish

between money market and capital market instruments.

Features of Commercial Papers as a money market instrument

Distinction between money market and capital market instruments. 5+5=10

Answer:Features of Commercial Paper:

Q3 Explain the functions of a primary dealer. Enumerate the role of Cooperative banks.

Functions of a primary dealer

Role of Cooperative banks 5+5=10

Answer:Functions of a primary dealer:The system of PDs in the government securities

Q4 Explain the Asset Liability Management of commercial banks. What do you understand by
financial inclusion process?

Asset Liability Management of commercial banks

Financial inclusion process 5+5=10

Answer:Asset Liability Management of commercial banks:ALM can be defined as a mechanism to address the risk faced by a bank due to a mismatch between assets
and liabilities either due to liquidity or changes in
Q5 Explain the legal framework of RBI and its credit control mechanism.

Legal framework of RBI

Credit control mechanism of RBI 5+5=10

Answer:Legal Framework of RBI:The legal framework of the RBI is well spread. It has enactments that take care of the needs and
requirements of the financial system, especially safeguarding the interest of all concerned. The following are
various acts relating to the functions of the RBI:
Reserve Bank of India
Q6 SWIFT offers unique message processing services globally. Critically explain the
features and importance of SWIFT.

Critically explain the feature and importance of SWIFT. 10

Answer:In an era of information technology SWIFT (Society for World-Wide Interbank Financial
Telecommunications) offers unique message processing services and provides a very fast, accurate and
authenticated transfer of financial

ASSIGNMENT DRIVE SUMMER 2016

PROGRAM MBA
SEMESTER III
SUBJECT CODE & NAME MA0037 & BANKING RELATED LAWS AND PRACTICES
BK ID B1618 CREDITS 4 MARKS 60

Q. No 1 Section 42 of the Banking Regulation Act prescribes maintenance of Cash Reserve

Ratio in all scheduled banks. Illustrate.

Maintenance of Cash Reserve Ratio in commercial banks as per Section 42 of banking

Regulation Act 10

Answer:Every banking company which is a scheduled bank is duty-bound to maintain with RBI a certain cash
reserve as per section 42 of the RBI Act. In the case of non-scheduled banks, section 18 of the act applies for
the maintenance of cash reserve.
Scheduled bank is

PLEASE

CONTACT

US

TO

GET

HELP

IN

FULLY

ASSIGNMENTS/SYNOPSIS/PROJECT REPORT/MODEL PAPERS MCQS.

CONTACT:
EMAIL ID=

mrinal833@gmail.com

PHONE NO=

(9706665232/9706665251)

WEBSITE=

http://www.smuassignmentandproject.com/

Q2 Explain the essential features of a contract of guarantee.

Essential features of a contract of guarantee 10

Answer:-

SOLVED

SMU

The important requirement in connection with cash reserve is the submission of the returns to RBI. Every
scheduled bank has

Q3 Explain the rules of endorsement in the light of Negotiable Instruments Act.

Rules of endorsement as per Negotiable Instruments Act 10

Answer:Endorsement means the writing of a persons name on the face or back of a negotiable instrument or on a
slip of paper (called alonge) annexed thereto, for the purpose of negotiation (Sec 15). The person who signs
the instrument is called the Endorser. The person to whom the instrument is endorsed to is called the
Endorsee.
Sec 15 states that endorsement

Q4 A banker has to be acquainted with transfer of immovable properties. What are the
salient features of such transactions as per the Transfer of Property Act 1882?

Salient features of transfer of immovable properties as per Transfer of Property Act,

1882 10

Answer:Chapter II of the Transfer of Property Act of Parties deals with the transfer of immovable properties by
competent persons
Q5 Explain the rules of Set-off and Appropriation applied by commercial banks.

Rules of Set-off and Appropriation applied by commercial banks 10

Answer:Rules governing right of set-off The right of set-off can be exercised with respect to debts due and not with
respect to future debts or contingent debts. For example, a banker cannot set-off a credit balance in the
accounts of a customer towards the payment of a bill, which is already due but not with respect to a bill
which will mature in the future.

Q6 Explain the jurisdiction, power and authority of DRT (debt Recovery Tribunal) and DART
(Debt Appellate Recovery Tribunal).

Jurisdiction, power and authority of DRT and DART 10

Answer:Jurisdiction, powers and authority of Tribunals

Whenever the Tribunal or the Appellate

ASSIGNMENT DRIVE SUMMER 2016

PROGRAM MBA
SEMESTER III
SUBJECT CODE & NAME - MA0039 & RETAIL BANKING
BK ID B1619 CREDITS 4 MARKS 60
Q. No 1 What is a garnishee order? Does it differ from an Income-tax Attachment order?

Garnishee Order
Differentiate with an IT Order 6+ 4 = 10

Answer:Garnishee Order
A garnishee order is an order issued by the court in favour of judgment creditor attaching the funds of
judgment debtor lying with the third party. Here three parties are involved, they are:
Judgment creditor
Q2 Write a note on collection of trade bills. Illustrate a popular third party product offered
through the banking channel.

Collection of trade bills

A popular third party product offered through the banking channel 6+ 4 =10

Answer:Collection of Trade Bills

Banks help in commercial transactions by helping parties involved in trade to settle their dues. The traders
(both seller and buyer) believe that the receipt and payment of money for the goods is assured because of the
involvement of banks as a collection agent. Following documents are involved in a trade between a seller and
buyer:

 Bill of exchange
Q3 Handling of negotiable instruments are important activities of commercial banks.
Elucidate the statement.

Handling of negotiable instruments is an important activity of commercial banks.

Elucidate the statement. 10

Answer:Negotiable instruments are principal instruments for making payments and discharging business
obligations. These are transferable documents and regulated through laws contained in the Negotiable
Instrument Act, 1881. According to Section 13
Q4 Settlement of claims needs expertise and acumen Explain giving illustrations.

Settlement of claims needs expertise and acumen Explain giving illustrations. 10

Answer:There are two methods of inter-bank settlement. They are net settlement and gross settlement. Under net
settlement, individual bank's claim for and against, are grouped separately and the net amount of claim is
settled by debiting or crediting bank's account with RBI. Under this system, the account will be credited or
debited only once in a day. Sometimes, depending upon the situation, settlements are made two to three
times in a day. Under gross
Q5 Write a case study on phishing in a commercial bank.

Case study on instance of phishing in a commercial bank 10

Answer:Case Study: ICICI Bank Phishing

Recently, a few ICICI Bank customers in Mumbai, to their utter dismay, discovered that e-mails can be
extremely hazardous, if not to their health, at least to their security. These ICICI Bank customers received an
e-mail from someone who posed as an official of the bank and asked for sensitive information like the
account holder's Internet login name and password and directed them to a Web page that resembled the
bank's official site. When some customers
Q6 Explain the five principles of lending.

The five principles of lending 10

Answer:Principles of lending

Commercial banks lend deposits collected from public. To avoid risks and to ensure safety of these funds,
banks are required to adhere

ASSIGNMENT DRIVE SUMMER 2016

PROGRAM MBA
SEMESTER III
SUBJECT CODE & NAME MA0045 & BANKING MANAGEMENT
BK ID B1616 CREDITS 4 MARKS 60

Q. No 1 Illustrate the transformation of the banking system in India in the post

nationalization era.

Transformation of the banking system in India in the post nationalization era. 10

Answer:India's banking system has seen ups and downs in the past. For over three decades, it has several
outstanding achievements to its credit. To cite a few, the expansion that took place post nationalisation has
been phenomenal. The reach is extensive, spreading to the un-banked and the under-banked centres of the
nation. India's growth process is significantly contributed by technology. Customers are the major
beneficiaries due to technological changes in the Indian banking
Q2 Explain the strategies of pricing of business loans by commercial banks to enhance their
credit portfolio.

Enhancement of credit portfolio through pricing of business loans by commercial

banks 10

Answer:Business loans form the core of credit portfolio of banks. Banks scout for enhancement of business loans as a
strategy for growth and increase in market share. It may be noted that the major portion of a banks fund is
employed by way of loans and advances, which is the most profitable employment of its funds. The major
part of a banks income
PLEASE

CONTACT

US

TO

GET

HELP

IN

FULLY

ASSIGNMENTS/SYNOPSIS/PROJECT REPORT/MODEL PAPERS MCQS.

CONTACT:
EMAIL ID=

mrinal833@gmail.com

SOLVED

SMU

PHONE NO=

(9706665232/9706665251)

WEBSITE=

http://www.smuassignmentandproject.com/

Q3 Generating Non-interest income and monitoring expenses are key factors for growth and
profitability. What are the ratios banks use to evaluate these parameters?

Ratios of measurement of growth of non-interest income and monitoring expenses

10

Answer:Non-interest income means income other than the interest income. This is earned through commissions,
exchanges, and service charges. The overall profitability of the bank depends on maximisation of noninterest income and reduction

Q4 Illustrate the credit process of commercial banks.

Credit process of commercial banks 10

Answer:Decision making with regard to credit in a bank is all about analysing the risk involved in such lending. In
the present day, credit risk management is given more importance in banks. The credit appraisal process
requires answering two questions:
What are the fund requirements

Q5 Explain some of the money market instruments having short maturity and promising
high profitability
Short term and highly profitable money market instruments 5 10
Answer: Call money
Call money are those money which are lent to the borrower who has to repay the amount when called on to
do by the lender. The period ranges from one day to a maximum period of fourteen days. A major portion of
call money is for overnight tenor and the borrower repays the principal with interest on the next day. Call
money market is used to manage their

Q6 What are the benefits derived from leveraging technology by banks in India?

Benefits derived from leveraging technology by banks in India 10

Answer:-

Adoption of technology will assist in the increased entry of goods and services. Computerising processes
have made banking products and services inexpensive and easy to use. At the same time, they have helped
banks to improve operating margins due to the processes of customisation, which allows transactions to take
place faster and reduce costs.