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CA Final Special Features of Audit of Banks and Non-Banking Financial Companies — practice questions — page 3

Explore 80 free Special Features of Audit of Banks and Non-Banking Financial Companies questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Special Features of Audit of Banks and Non-Banking Financial Companies questions and exercises with answers

Showing questions 61–80 of 80.

Section 17 requires an Indian bank to transfer at least what share of annual profit to its reserve fund?Read the answer and worked solution →A bank withdraws money from its reserve fund. Within how many days must it report this to the RBI?Read the answer and worked solution →When must the statutory transfer to a bank's reserve fund be made?Read the answer and worked solution →Under s.15, a bank may not pay a dividend until what is fully written off?Read the answer and worked solution →Under s.15(2), provision for depreciation must satisfy whom?Read the answer and worked solution →Under s.8, a bank may not directly deal in buying or selling what?Read the answer and worked solution →Under s.9, how long may a bank hold immovable property not needed for its own use?Read the answer and worked solution →The RBI may extend a bank's seven-year period for holding non-banking property by up to how long?Read the answer and worked solution →Under s.22, who licenses banking business in India?Read the answer and worked solution →Under s.21, whose policy on advances must banking companies follow once determined?Read the answer and worked solution →Section 24(2A) caps the liquid-assets percentage a bank must hold at what level?Read the answer and worked solution →Within how many days after month end must a bank furnish the RBI its s.24 return?Read the answer and worked solution →The statutory liquidity ratio is expressed as a percentage of which bank amount?Read the answer and worked solution →Raising SLR is generally used by RBI for what purpose?Read the answer and worked solution →Which formula gives SLR? (DTL = demand plus time liabilities)Read the answer and worked solution →A loan is generally non-performing when payments of interest and principal are past due by how many days?Read the answer and worked solution →An NBFC differs from a bank in that it is what?Read the answer and worked solution →Which of these is an example of a non-banking financial institution?Read the answer and worked solution →A bank trades in groceries for profit. Which section does this breach?Read the answer and worked solution →Under s.17, what must a profitable bank do before declaring dividend?Read the answer and worked solution →

Worked practice questions

Section 17 requires an Indian bank to transfer at least what share of annual profit to its reserve fund?

  1. Five per cent
  2. Ten per cent
  3. Fifteen per cent
  4. Twenty per cent
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Correct answer: D. Twenty per cent

Every banking company incorporated in India must transfer not less than twenty per cent of each year's profit to the reserve fund before declaring dividend.

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A bank withdraws money from its reserve fund. Within how many days must it report this to the RBI?

  1. Twenty-one days
  2. Seven days
  3. Sixty days
  4. One hundred days
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Correct answer: A. Twenty-one days

Section 17(2) requires reporting an appropriation from the reserve fund to the Reserve Bank within twenty-one days, with reasons.

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When must the statutory transfer to a bank's reserve fund be made?

  1. After the annual meeting
  2. Before dividend is declared
  3. After tax assessment
  4. At the next RBI audit
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Correct answer: B. Before dividend is declared

Section 17(1) puts the transfer out of the year's profit and before any dividend is declared.

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More Auditing topics

Auditor's ReportOverview of Audit of Public Sector UndertakingsInternal AuditStandards on Auditing and Professional EthicsInternational Ethics Standards Board for AccountantsRisk Assessment and Internal ControlAuditor's Report on Financial StatementsAudit Planning Strategy and Execution