BBA 8th Semester
Banking Law and Regulation Board Question Paper 2024

TRIBHUVAN UNIVERSITY
FACULTY OF MANAGEMENT
Office of the Dean
August 2024
Full Marks:60 Pass Marks:30 Time:3 Hrs.
BBA /
Eighth Semester /
BNK 205:
Banking Law and Regulation

Candidates are required to give their answers in their own words as for as practicable.
The figures in the margin indicate full marks

Long Answer Questions
Section "A"

Brief answer questions:

[10 × 1 = 10]
1.

Nepal Rastra Bank is the largest commercial bank in Nepal.

2.

Monetary policy of government is issued by central bank before the issue of annual budget.

3.

NRB regulates all financial institutions in Nepal.

4.

Two or more than two banks or financial institutions provide consortium loan to a large scale project.

5.

BAFIA has given power to issues bylaws.

6.

A post-dated cheque is valid and negotiable in Nepal.

7.

High profiled person are considered as low risk category customers.

8.

Quality of collateral affects risk of a lender / bank.

9.

A letter of credit is an agreement by a bank to honor a draft drawn on the importer.

10.

No matter the circumstances: Piracy is a crime.

Section "B"

Short Answer Questions:

[6 × 5 = 30]
11.

Describe the evolution of banking law in Nepal.

12.

Explain the functions and power of Nepal Rastra Bank.

13.

Highlight the major features of BAFIA 2073.

14.

Explain the merits and demerits of banking regulation.

15.

What is bill of exchange? How does a promissory note differ from a bill of exchange?

16.

Describe the meaning and features of good collateral.

Section "C"

Comprehensive Answer Questions:

[2 × 10 = 20]
17.

Nepal Rastra Bank has full authority to regulate and systematize the functions and activities of banks to maintain the sound health of the financial system. In this regard explain the major prudential regulations of Nepal Rastra bank as central bank of Nepal. Also write your opinion that whether the existing regulation is appropriate to achieve the goal or not.

18.

A letter of credit (LC) is a payment instrument used in international transactions. Where a bank / issuing importer's bank guarantees payment to the exporter on behalf of the importer via remitting bank/bank exporter's if both parties fulfill their obligations. In this context enlist and explain the operational mechanism of LC.