Free 2026 CAIIB Mock Exam
Paper 4: Banking Regulations and Business Laws (BRBL)

M/s Global Exports Ltd, an Indian entity, received an advance payment of USD 2.50 Million on 12th January 2024 (Exchange rate: 1 USD = ₹83.10) for the export of specialized engineering goods to a buyer in the UK. As per the terms of the export contract, the shipment was to be made within 1ounded year. However, due to severe supply chain disruptions and raw material shortages, the company could only ship 40% of the goods by 10th January 2025. The balance goods could not be manufactured, and the overseas buyer requested cancellation of the remaining contract on 15th January 2025. Simultaneously, the company was flagged by its AD Category-I bank for suspicious transactions under the Prevention of Money Laundering Act (PMLA), 2002, as cash deposits aggregating ₹12 Lakhs were made into the current account of its sister concern just prior to the remittance request, without adequate business rationale. Furthermore, the company's director received a notice from the Banking Ombudsman regarding an unresolved consumer grievance filed by a retail customer who suffered a wrongful debit of ₹45,000 due to an unauthorized electronic transaction linked to the firm's commercial payment gateway.