Principles and Practices of Banking - 1 (JAIIB)

Open-ended fund is a collective investment scheme which can issue and redeem shares at any time. An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period.

Ways and means advances (WMA) is a mechanism used by Reserve Bank of India (RBI) under its credit policy by which it provides help to the States to tide over temporary mismatches in the cash flow of their receipts and payments.

Correct Answer: Joint stock companies – SEBI
Joint-stock companies in India are governed by the Indian Companies Act, 1956. 

The export factor selects an appropriate import factor to act on the seller's behalf overseas. With the export factor's supervision, the import factor overseas investigates the credit standing of any local customer to whom the seller wishes to sell goods. The import factor will manage the seller's collections and cover the credit risk.

Factoring is a financial transaction and a type of debtor finance in which a seller sells its accounts receivable to a third party in which the whole responsibility passes to the factor. This process is called Factoring.

During the UPA government’s tenure, a committee headed by the then Chief Economic Advisor, Ashok Lahiri, released a report in November 2005 on encouraging FII flows and checking the vulnerability of capital markets to speculative flows. On recommendation from Lahiri Committee, in 2004, it passed a regulation that derivative instruments like PNs against underlying Indian securities can be issued only to regulated entities and further transfers, if any, can also be to other regulated entities only.

Seller's credit is a kind of loan provided by a financial institution to an exporter or seller against a shipment that has already been made. This type of export finance is granted from the date of extending the credit after shipment of the goods to the realization date of the exporter proceeds.

The Credit Information Bureau of India Ltd. (CIBIL) consolidates the information on individual borrowers' credit history, sourced from different member credit institutions such as banks, credit card companies and NBFCs, into a single report called the CIR.

A depository institution provides financial services to personal and business customers. Deposits in the institution include securities such as stocks or bonds. The institution holds the securities in electronic form also known as book-entry form, or in dematerialized or paper format such as a physical certificate.

Merger is a statutory combination of two or more corporations by the transfer of the properties to one surviving corporation. 

There is no such abbreviation. 

Secondary market is a market where investors purchase securities or assets from other investors, rather than from issuing companies themselves.

The Central Board of Directors governs the affairs of the RBI. The Board consists of Official Directors (Governor and not more than four Deputy Governors) and Non-Official Directors (ten Directors from various fields, one government official and each of the Directors of the four Local Boards) who are appointed by the Government of India for a period of four years.

A preference share is said to be cumulative when the arrears of dividend are cumulative and such arrears are paid before paying any dividend to equity shareholders.

Ration card is considered as the address proof.

The Offsite Surveillance and Monitoring System (OSMOS) plays a key role in identification of risks and monitoring banks on a continuous basis. OSMOS consists of a set of 28 structured returns that capture prudential and statistical information of banks at periodical intervals. The RBI requires banks to submit detailed and structured information periodically under OSMOS. On the basis of OSMOS, RBI analyzes the health of the banks.

Gilt Funds are mutual funds that invest only in government securities. They are preferred by risk averse and conservative investors who wish to invest in the shadow of secure government bonds.

This account was introduced as NRE scheme in 1970. It’s a Rupee account and the NRI can remit money to India from the funds abroad. This means that depositor is exposed to the currency rates risk. An NRE-RA account can be opened as saving, current, RD and FD only because these accounts are opened for the purpose of depositing income earned overseas. The funds held in these accounts can be remitted back overseas freely subject to terms and conditions of the resident country.

The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory authorities that was established by the central bank governors of a group of ten countries in 1975.

The second pillar, i.e. Supervisory Review Process, is a regulatory response to the first pillar, giving regulators better 'tools' over those previously available. It also provides a framework for dealing with systemic risk, pension risk, concentration risk, strategic risk, reputational risk, liquidity risk and legal risk, which the accord combines under the title of residual risk. Banks can review their risk management system.

Where the drawer’s signatures have been put by someone else so cleverly that these resemble the original signatures of the drawer, this is not genuine and the bank can be asked to reverse the debit entry.

A universal bank is a financial service conglomerate combining retail, wholesale and investment banking services under one roof and reaping synergies between them.

Correct Answer: Micro and small enterprises - 10% of ANBC
For Micro Enterprises - 7.5 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher to be achieved in a phased manner, i.e. 7 per cent by March 2016 and 7.5 per cent by March 2017.

Correct Answer: 8% of the risk weighted assets
As per RBI Guidelines, Indian banks will have to maintain their capital adequacy ratio at 9 per cent as against the minimum recommended requirement of 8 per cent as per Basel Committee's requirements.

Section 85(1) in the Negotiable Instruments Act, 1881 - (1) Where a cheque payable to order purports to be endorsed by or on behalf of the payee, the drawee is discharged by payment in due course. (2) Where a cheque is originally expressed to be payable to bearer, the drawee is discharged by payment in due course to the bearer thereof, notwithstanding any endorsement whether in full or in blank appearing thereon, and notwithstanding that any such endorsement purports to restrict or exclude further negotiation.

Correct Answer: 20%, paid up capital
Equity investments in any non-financial services company held by (a) a bank; (b) entities which are bank’s subsidiaries, associates or joint ventures or entities directly or indirectly controlled by the bank; and (c) mutual funds managed by Asset Management Companies (AMCs) controlled by the bank should in the aggregate not exceed 20 per cent of the investee company’s paid up share capital.

A bull market is a financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, currencies and commodities.

Correct Answer: 26%
As per Section 12 (2) of the Banking Regulation Act, 1949, any shareholder’s voting rights in private sector banks are capped at 10 per cent. This limit can be raised to 26 per cent in a phased manner by the RBI.

All of the above reasons are correct.

A debit card (also known as a bank card or check card) is a plastic payment card that can be used instead of cash when making purchases. Amount is immediately recovered from the card holder online for the amount of card used, in case of a debit card which is opposite to a credit card facility.

Bank of International Settlements -  It is an international financial institution owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks".

According to Section 49A , Restriction on acceptance of deposits withdrawable by cheque, no person other than a banking company, the Reserve Bank, the State Bank of India or any other banking institution, firm or other person notified by the Central Government in this behalf on the recommendation of the Reserve Bank shall accept from the public deposits of money withdrawable by cheque: provided that nothing contained in this section shall apply to any savings bank scheme run by the Government.

In finance, a convertible bond is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value.

Section 171 in The Indian Contract Act, 1872
General lien of bankers, factors, wharfingers, attorneys and policy-brokers — Bankers, factors, wharfingers, attorneys of a High Court and policy-brokers may, in the absence of a contract to the contrary, retain as a security for a general balance of account, any goods bailed to them; but no other person has a right to retain, as a security for such balance, goods bailed to them, unless there is an express contract to that effect.

Cash Reserve Ratio (CRR) is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank.

Section 31 Liability of drawee of cheque — The drawee of a cheque having sufficient funds of the drawer in his hands properly applicable to the payment of such cheque must pay the cheque when duly required to do so, and, in default of such payment, must compensate the drawer for any loss or damage caused by such default. 

A term loan is a monetary loan that is repaid in regular payments over a set period of time. It lasts for 10 years approximately or more, therefore it is not working capital source. It is a part of current liability.

Holder in due course means a person who must have the possession of the instrument. This is the basic difference between the Holder and Holder in Due Course.
Holder in Due Course must obtain the instrument in Good Faith.
If the instrument bears not-negotiable crossing, then no person can be a holder in due course.
If the instrument bears A/C payee crossing and restricted endorsement, then no person can be a holder in due course.
Forgery / theft / deceit do not convey any title. 

Demutualisation is the process through which any member-owned organisation becomes a shareholder-owned company. A stock exchange can demutualise in many ways. One common way is to split the membership into two parts — trading rights and ownership. 

A right of lien can be used when the debt has already become due.

An electronic purse is the store of value on a card, which can be used in a manner similar to cash to pay for travel or for other small-scale transactions. It can have several storage spaces.

Correct Answer: Assignment - Assignor and assignee
For a loan to be raised, a person assigns his insurance policy in favour of the bank - Assignor and assignee.

Reverse Repo Rate is the rate of interest at which the RBI borrows funds from other banks in the short term. An increase in the reverse repo rate can prompt banks to park more funds with the RBI to earn higher returns on idle cash. It is also a tool that can be used by the RBI to drain excess money out of the system.

Correct Answer: None of the above

Correct Answer: A part-time director is appointed for a term not exceeding 5 years
Appointment of Managing Director, Whole–Time Director or Manager shall only be for a term which must be less than five years. However, the company may re-appointment them for next term before expiry of their present term but not earlier than one year before expiry of the term. This means, company may re-appoint them for next term in last one year of current term. 

IT has affected the banks in all the given ways. 

The amount is paid to the person who is having the bill at the time the bill is due, so in this case, Mr. Ravi is having the bill as he has not endorsed to any other person, so he will receive the payment.

Correct Answer: can be negotiated by Mr. Sita Ram without endorsement by him and by mere delivery

Tier II capital includes Revaluation reserves, Undisclosed reserves, Perpetual cumulative preference shares, Subordinated term debt and General provisions etc. Thus, option 2 is the correct answer.

Initial public offering is the process of offering the stock of a company on a public stock exchange for the first time.

Acknowledgement of debt already obtained by the firm can be considered an action of a partner that would bind other partners under Limitation Act, 1963.

Section 131 - Non-liability of banker receiving payment of cheque — A banker who has in good faith and without negligence received payment for a customer of a cheque crossed generally or specially to himself shall not, in case the title to the cheque proves defective, incur any liability to the true owner of the cheque by reason only of having received such payment.

Section 131 - deals with the non-liability of banker receiving payment of cheque

Correct Answer: a, b and d are correct
‘Cheque’ is an instrument which contains an unconditional order, drawn on a banker, directing to pay a certain sum of money to the person whose name is specified in the instrument. ‘Bill of Exchange’ is a document containing an unconditional order, directing a person to pay a certain amount to a specified person. These two terms sound the same, which becomes the cause of confusion for many people. A cheque can be endorsed or crossed. 

As per section 18 of the Indian Stamp Act, 1899, any instrument executed out of India can be stamped in India, provided it is stamped within 3 months from the date it has been first received in India.

In a smart card, the security features are retinal pattern, dynamic verification, signature verification, multiple pins and vein recognition. Thus, all the parts are correct. 

No collateral is required up to a total loan of Rs. 1.00 lac from bank for agriculture purpose as per RBI guidelines.

Correct Answer: Tarapore Committee
In November 2003, Reserve Bank of India (RBI) constituted the Committee on Procedures and Performance Audit of Public Services under the Chairmanship of Shri S. S.Tarapore (former Deputy Governor) to address the issues relating to availability of adequate banking services to the common person. The mandate to the Committee included identification of factors that inhibited the attainment of best customer services and suggesting steps to improve the quality of banking services to individual customers. The Committee felt that in an effort to continuously upgrade the package of services that banks offered to their customers, there was a need for benchmarking of such services. After an in-depth study at the grass-roots level, the Committee concluded that there was an institutional gap for measuring the performance of banks against a bench mark reflecting the best practices (Code and Standards). Therefore, the Committee recommended setting up of the Banking Codes and Standards Board of India (BCSBI).

In India, Govt. debt is largely domestic and within that marketable debt is the largest component, which is managed by the Reserve Bank of India.

To curb inflation, RBI increases repo rate which will make borrowing costly for banks. Banks will pass this increased cost to their customers which makes borrowing costly in the whole economy.

An audit trail (also called audit log) is a security-relevant chronological record, set of records, and/or destination and source of records that provide documentary evidence of the sequence of activities that have affected at any time a specific operation, procedure, or event.

Disk duplexing is a variation of disk mirroring in which each of multiple storage disks has its own SCSI controller. Disk mirroring (also known as RAID-1) is the practice of duplicating data in separate volumes on two hard disks to make storage more fault-tolerant.

"Not-negotiable" means that you cannot endorse a cheque in favour of someone else. This is not correct, however, as the cheque can be endorsed to someone else but all subsequent parties accepting the cheque cannot get better rights than the person that they received it from.

In the case of small borrowers seeking loans up to Rs. 2 lakh, the lenders should convey in writing, the main reason(s), which in the opinion of the bank after due consideration, has/have led to rejection of the loan applications within stipulated time.

Tier 2 capital represents "supplementary capital" such as undisclosed reserves, revaluation reserves, general loan-loss reserves, hybrid (debt/equity) capital instruments, and subordinated debt.

Correct Answer: Rs. 135 cr
A revaluation reserve is a reserve created when a company has an asset revalued and an increase in value is brought to account. A simple example may be where a bank owns the land and building of its head-offices and bought them for $100 a century ago. A current revaluation is very likely to show a large increase in value. The increase would be added to a revaluation reserve. The reserve may arise out of a formal revaluation carried through to the bank's balance sheet, or a notional addition due to holding securities in the balance sheet valued at historic cost. Basel II also requires that the difference between the historic cost and the actual value be discounted by 55% when using these reserves to calculate Tier 2 capital. Hence, 45% of 300 cr = 135 cr. 

Borrowing powers of the Board are under section 180 of the Companies Act, 2013. Section 180 is applicable to all companies, i.e. public as well as private. So, w.e.f. 12th September, 2013 onwards, even private companies have to seek the approval of their members if they are intending to borrow monies in excess of their paid up share capital and free reserves.

A bank authorised by the issuing company to issue GDRs/ADRs against the issue of FCCBs/ordinary shares of the issuing company is known as an ODB, overseas depository bank.

The Banking Regulation Act requires that at least 51% of the directors should have specialized knowledge.

If the bank deposits the amount which is prohibited, there is fine to extent of 200% of the amount of deposit so accepted.

Master policy means an insurance policy that provides coverage to eligible employees or members on a group basis.

Conversion is when for example, someone sells property that does not belong to them without the owner's consent. In this context, the cheque is treated as property, and its value is the amount of the cheque. Since most misappropriated cheques will have been handled by a collecting bank and a paying bank, both become possible defendants in an action for conversion.

According to the section 13 of Banking Regulation Act, 1949, notwithstanding anything to the contrary contained in [sections 76 and 79 of the Companies Act, 1956 (1 of 1956)], no banking company shall pay out directly or indirectly by way of commission, brokerage, discount or remuneration in any form in respect of any shares issued by it, any amount exceeding in the aggregate two and one-half per cent of the paid-up value of the said shares.

At least one of the original account holders needs to stay. Both can't be replaced.

The significance of crossing is that the payment of the instrument can only be made through a Banker (Account Holder). When it is a crossed instrument, it gives direction to the paying Banker (Bank) to pay the money to a Banker. Thus, the holder of such an instrument must deposit the same into his or the other person’s Bank Account for collection. An instrument is crossed in order to provide a safeguard against theft of fraud. Thus, all the given options are not true in case of ‘account payee crossing’. 

Gilt fund is a mutual fund that invests in several different types of medium and long-term Govt. securities in addition to top quality corporate debt. Gilts originated in Britain.

Under section 8, the Central Government may, by licence issued in prescribed manner, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited” .

Correct Answer: Bank will not accept such request.

QIBs encompass a wide range of entities, including banks, savings and loans associations, insurance companies, investment companies, employee benefit plans or entities owned entirely by accredited investors. Banks and S&L associations must also have a net worth of at least $25 million to satisfy the QIB criteria. Thus, none of the given options can function as qualified institutional buyer.

Correct Answer: Customer Service Committee of the Board
Banks should report to the Customer Service Committee of the Board, at appropriate intervals, on an ongoing basis, the details of the number of claims received pertaining to deceased depositors / locker-hirers / depositors of safe custody article accounts and those pending beyond the stipulated period, giving reasons therefor. 

NABARD undertakes inspection of Regional Rural Banks (RRBs) and Cooperative Banks (other than urban/primary cooperative banks) under the provisions of Banking Regulation Act, 1949. 

A savings/fixed/recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian. Thus, option 3 is false.

Securitization is the process of issuing marketable securities backed by a pool of existing assets such as auto or home loans. After an asset is converted into a marketable security, it is sold. A securitization company or reconstruction company may raise funds from only the QIB (Qualified Institutional Buyers) by forming schemes for acquiring financial assets.

If a bank pays out on the basis of a forged signature on a cheque, it does so without its customer’s mandate and is generally required to make good any loss that the payment causes the customer. It does not matter how good the forgery is; a skilful forgery is no more valid than a crude one. That may seem unfair to a banking firm that acts in good faith on the basis of a skilful forgery – but if it were otherwise, a person could be bound by anyone who was able to make a good copy of their signature. Thus, the bank is liable for the forged cheques and it has to reverse the entry. 

For term deposits, the minimum amount accepted for fixed/short deposit is Rs. 1000 for a period of 15 days and above and minimum of Rs. 100 lac and above for a minimum period of 7 days.

Operational risk has been defined by the Basel Committee on Banking Supervision as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputation risk.

“Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned. Thus, payment of a bearer cheque to Mr. X through it is drawn in favour of Mr. Y and the endorsement by Y in favour of Mr. Z comes under “Payment in due course”. 

The overall objectives of SEBI are to protect the interest of investors, promote the development of stock exchange and regulate the activities of stock market. Thus, all the options are the objectives of SEBI. Therefore, option 4 is the correct answer.

Vertical merger includes a customer and company or a supplier and company. Thus, the given is a type of vertical merger. 

The bank insurance model (BIM), also sometimes known as bancassurance or allfinanz, is the partnership or relationship between a bank and an insurance company, or a single integrated organisation, whereby the insurance company uses the bank sales channel in order to sell insurance products. 

The notice should mention that the cheque amount has to be paid to the payee within 15 days from the date of receipt of the notice by the drawer. Thus, option 2 is the correct answer. 

Correct Answer: If after mandate, a power of attorney is given by the customer in favour of another person, the mandate ceases to operate.

A mutual fund is a mechanism for pooling resources by issuing units to the investors and investing funds in securities, in accordance with objectives as disclosed in the offer document. Mutual fund units are issued to the investors in accordance with a quantum of money invested by them. Investors of mutual funds are known as unit holders.

The registration of a partnership firm is voluntary and not compulsory as the word used under Section 58 which deals with registration of a firm is “may’’ and not “shall.”

Correct Answer: All of the above
Under section 131 of Negotiable Instrument Act, the collecting bank will get protection under all the given conditions.

The payment CANNOT be stopped unless there is an order by a competent court. So, when a draft reaches a payee, the relationship between the purchaser and bank comes to an end. Therefore, the request of P will not be entertained.

Types of Cheque:
i. Ante-dated cheque: A cheque bearing a date prior to actual date of signing the cheque or opening of an account is called an ante-dated cheque which is valid and can be paid till it becomes stale. For example, a heque dated January 9, 2013 for an account opened on January 25, 2013 can be paid.
ii. Stale cheque: If the validity of the cheque has already expired, it is called stale cheque and cannot be paid. The normal maximum validity of a cheque is 3 months. Earlier, it was 6 months. If a cheque is presented after 3 months, it will be returned.
iii. Post-dated cheque: The cheque which bears a date subsequent to the date on which it is drawn is called post-dated cheque. For example, a cheque drawn on January 10, 2013 bears the date of January 12, 2013.
If a bank notices a post-dated cheque presented for payment before the date appearing thereon, the cheque will be returned marked post-dated or the bank will hold onto the cheque until it is able to be cashed in.

A revolving letter of credit is a special letter of credit which is structured in a way so that it revolves either in value or in time, covering multiple shipments over a long period of time under single letter of credit.

Imprisonment and fine to drawer: The penalty to a drawer can include imprisonment for a period that may extend up to two years and also a fine up to double the amount of the cheque.

In case of a debit card, a customer can make payment to the extent of balance lying in his account. In case of a credit cards, payments have to be made afterwards.

The execution of the 'will' will be carried by the executor. The executor can also inherit under the will.

Cheques above Rs. 5 lac will have to undergo checks at multiple points before clearance.

According to RBI, "Banks should not take undue advantage of customer difficulty or inattention. Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level". Thus, (b) is not true and won't result in closing of the account. Other than (b), all the parts are true.

The bank shall pass the 1^st cheque and return the 2^nd cheque as the first cheque was dated before the death of the President (January 31, 2016). However, the other cheque was dated after the death of the President, so it will not be passed.

Disk duplexing is a variation of disk mirroring in which each of multiple storage disks has its own SCSI controller. Disk mirroring (also known as RAID 1) is the practice of duplicating data in separate volumes on two hard disks to make storage more fault-tolerant. LAN can safeguard data by disk mirroring or disk duplexing.

The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. KYC procedures also enable banks to know/understand their customers and their financial dealings better, which in turn help them manage their risks prudently. Thus, option 4 is the correct answer.

All rejection of loan applications received will be conveyed in writing giving the main reasons for rejection of the loan application, within the stipulated time as a part of fair practices code. Also, under this, the bank will verify the loan applications received within a reasonable period of time and if additional details/documents are required, the same will be intimated to the borrowers within such reasonable period of time.

A multi-user operating system is that which handles and controls multiple users attached to a single computer. All the options, except option 2, talk about the advantages. A multi-user operating system is mostly advantageous for information purposes, which can be a disadvantage as well in case of sharing private information. Option 2 talks about the hardware which is not suitable. Thus, option 2 is the correct answer.

A dumb terminal is a computer terminal that consists mostly of just a display monitor and a keyboard (and perhaps a mouse as well). It has no internal CPU (central processing unit) and thus, has little or no processing power.

Usance bill of exchange contains an expression making it payable on the expiration of a certain period ‘after date’ or ‘after sight’. Here, the word ‘date’ in the ‘after date’ refers to the date of the bill. ‘After sight’ means ‘after acceptance’, ‘noting for non-acceptance’ or ‘protest for non-acceptance’. ‘After sight’ or ‘on presentment’ bills must be presented before payment can be demanded. Therefore, the liability on a usance bill of exchange is that of drawer till it is accepted by the drawee and drawee after acceptance.

The words 'not-negotiable' can be added to general-crossing as well as special-crossing and a crossing with these words is known as not-negotiable crossing. The effect of such a crossing is that it removes the most important characteristic of a negotiable instrument: The transferee of such a crossed cheque cannot get a better title than that of the transferor (cannot become a holder in due course) and cannot convey a better title to his own transferee, but the instrument remains transferable.

Market risk is the risk of losses in positions arising from movements in market prices.There is no unique classification as each classification may refer to different aspects of market risk like equity risk, commodity price risk, currency risk, liquidity risk and interest risk, etc. However, loan default risk is the chance that companies or individuals will be unable to pay the required payments on their debt obligations. Thus, option 3 is the correct answer.

E-Commerce or Electronics Commerce is a methodology of modern business which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. E-commerce refers to paperless exchange of business information using ways like, Electronic Data Exchange (EDI), Electronic Mail (e-mail), Electronic Bulletin Boards, etc. 

Diversification is a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market. This is most risky section of the Ansoff Matrix, as the business has no experience in the new market and does not know if the product is going to be successful. Education loans are different from agriculture loans, so it is diversification growth strategy.

Section 19(2) of Indian Partnership Act:
In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to
(a) submit a dispute relating to the business of the firm to arbitration
(b) open a banking account on behalf of the firm in his own name
(c) compromise or relinquish any claim or portion of a claim by the firm
(d) withdraw a suit or proceeding filed on behalf of the firm
(e) admit any liability in a suit or proceeding against the firm
(f) acquire immovable property on behalf of the firm
(g) transfer immovable property belonging to the firm
(h) enter into partnership on behalf of the firm

The Banking Regulation Act, 1949 is a legislation in India that regulates all banking firms in India. Initially, the law was applicable only to banking companies, but in 1965, it was amended to make it applicable to cooperative banks and to introduce other changes. It deals with all the given parts. Thus, option 4 is the correct answer.

The Banking Regulation Act of 1949 came into force on 16^th March, 1949.