IBPS SO Professional Knowledge - Law Officer (Scale I) Syllabus

Professional Knowledge - Law Officer (Scale I) syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Professional Knowledge - Law Officer (Scale I) in IBPS SO, not a summary of it.

1. 1

   Banking and Negotiable Instruments Law

   4 topics

   • Banking Regulation Act and RBI Act
   • Negotiable Instruments Act (cheques, dishonour, Section 138)
   • Banker-Customer Relationship and Obligations
   • Banking Ombudsman and Consumer Protection
2. 2

   Security, Recovery and Insolvency Laws

   4 topics

   • Law of Contract and Indian Contract Act
   • Indemnity, Guarantee, Pledge, Mortgage and Hypothecation
   • SARFAESI Act and DRT (RDDBFI Act)
   • Insolvency and Bankruptcy Code (IBC)
3. 3

   Corporate and Compliance Law

   4 topics

   • Companies Act and Partnership / LLP Law
   • Prevention of Money Laundering Act (PMLA) and KYC / AML
   • Limitation Act and Transfer of Property Act
   • FEMA and Foreign Exchange Regulations
4. 4

   Constitutional and Allied Laws

   4 topics

   • Constitution of India: Fundamental Rights and Writs
   • Information Technology Act and Cyber Law
   • Right to Information Act
   • Law of Evidence and Civil / Criminal Procedure Basics

Professional Knowledge - Law Officer (Scale I) flashcards for IBPS SO

18 of 51 cards from the Professional Knowledge - Law Officer (Scale I) deck — real questions with worked answers.

1. Under the Banking Regulation Act, 1949, what is the definition of 'banking'?

   Accepting deposits of money from the public for the purpose of lending or investment, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise.

2. Which Act established the Reserve Bank of India and in what year did the RBI commence operations?

   The Reserve Bank of India Act, 1934; the RBI commenced operations on 1 April 1935.

3. Under the Banking Regulation Act, what is the minimum percentage of demand and time liabilities a bank must keep as the Statutory Liquidity Ratio (SLR), and who prescribes it?

   SLR is prescribed by the RBI; the Act allows it to be set up to a statutory ceiling, currently maintained in liquid assets (cash, gold, approved securities). The RBI determines the exact rate (currently 18%).

4. Which section of the Banking Regulation Act gives RBI power to give directions to banking companies in the public interest?

   Section 35A empowers the RBI to issue directions to banking companies in the public interest or in the interest of depositors/banking policy.

5. Under the Negotiable Instruments Act, 1881, what are the three types of negotiable instruments recognised by the Act?

   Promissory note, bill of exchange, and cheque.

6. What is the definition of a 'cheque' under Section 6 of the Negotiable Instruments Act?

   A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand; it includes the electronic image of a truncated cheque and a cheque in electronic form.

7. What is the punishment for dishonour of a cheque under Section 138 of the Negotiable Instruments Act?

   Imprisonment up to 2 years, or fine up to twice the cheque amount, or both.

8. What are the key conditions/timelines that must be satisfied to prosecute under Section 138 of the NI Act?

   Cheque must be presented within validity (3 months); on dishonour the payee must serve a demand notice within 30 days; the drawer gets 15 days to pay; if unpaid, complaint must be filed within 1 month after the 15-day period expires.

9. Under the NI Act, what is the legal validity period of a cheque from its date of issue?

   Three months from the date of the cheque (as per RBI directive); after this it becomes a stale cheque.

10. What is meant by 'crossing' of a cheque and what is the effect of a general crossing?

    Crossing means drawing two parallel transverse lines across the cheque; a general crossing means the cheque can only be paid into a bank account (not over the counter).

11. In the banker-customer relationship, what is the legal relationship when a customer deposits money in a bank?

    The relationship is that of debtor (bank) and creditor (customer); the deposited money becomes the bank's property and the bank owes a debt to the customer.

12. What is the banker's 'right of set-off' and 'right of lien'?

    Right of set-off allows a bank to combine two accounts of the same customer to adjust a debit balance against a credit balance; banker's lien is the right to retain securities/goods of a customer for a general balance due (general lien under Section 171 of the Contract Act).

13. What is a banker's primary obligation regarding secrecy of customer accounts, and name an exception.

    The bank has a duty of secrecy/confidentiality of customer account information; exceptions include disclosure under law (e.g., Income Tax/court order), RBI directions, customer's consent, and disclosure in the bank's own interest.

14. Under what scheme are banking customer complaints redressed by RBI, and what is its current name?

    The Reserve Bank - Integrated Ombudsman Scheme, 2021 (RB-IOS), which merged the earlier Banking, NBFC, and Digital Transactions Ombudsman Schemes into 'One Nation One Ombudsman'.

15. Under the RB-Integrated Ombudsman Scheme, when can a customer approach the Ombudsman?

    After making a written complaint to the bank, if no reply is received within 30 days, or the complaint is rejected, or the customer is not satisfied; the complaint to the Ombudsman must be made within one year of the bank's reply (or 13 months of the cause of action if no reply).

16. What is the definition of a valid 'contract' under Section 2(h) of the Indian Contract Act, 1872?

    An agreement enforceable by law is a contract. (Contract = Agreement + Enforceability by law.)

17. What are the essential elements of a valid contract under the Indian Contract Act?

    Offer and acceptance, intention to create legal relations, lawful consideration, capacity of parties, free consent, lawful object, certainty, possibility of performance, and not expressly declared void.

18. Under Section 2(d) of the Indian Contract Act, what is 'consideration'?

    When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does/abstains, or promises to do/abstain, something — such act, abstinence or promise is called consideration.

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