Economics · Banking Law and Practice
Consider the provisions regarding rights of recovery in banking: Statement 1: A Banker's General Lien under Section 171 of the Indian Contract Act 1872 acts as an implied pledge over bailed goods and securities. Statement 2: The Right of Set-Off is technically an accounting procedure to adjust mutual debts rather than a true lien, because a bank cannot hold a lien over its own debt (money deposited) to a customer. Statement 3: A Garnishee Order Nisi instantly changes the bank's relationship into an officer of the court for the entire balance. Which statement correctly identifies the technical legal distinction between a Lien and a Set-Off?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statement 1 and Statement 2.
- 2Statement 3.
- 3Statement 2.✓
- 4Statement 1.
Correct answer
Statement 2.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Banking Law and Practice MCQs →Want more practice questions on Banking Law and Practice?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Banking Law and Practice