CAIIB · Banking Regulations & Business Laws · Module B — Important Acts/Laws & Legal Aspects of Banking Operations, Part A
CAIIB BRBL Unit 14 — Creation/Registration and Satisfaction of Charges: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 29 October 2026 · Paper IV of the December 2026 cycle (Sunday 20 December 2026)
This is the free practice page for CAIIB BRBL Unit 14 — Creation/Registration and Satisfaction of Charges (Module B — Important Acts/Laws & Legal Aspects of Banking Operations, Part A). The CAIIB Mock Centre holds 179 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five practice questions with explanations, and the traps that cost marks.
BRBL · Module B179 MCQs in the Mock Centre5 free belowPaper on 20 December
Key facts examiners test from this unit
What is a charge? — a charge is any interest or lien a company creates on its property as security, a mortgage included, and every such charge must be registered with the Registrar of Companies.
Fixed and floating charges — a fixed charge binds specific property at once; a floating charge hovers over changing assets, which the company may deal with until the charge crystallises.
Procedure for registration — file the charge within 30 days in CHG-1 or CHG-9, signed by both sides; late filing is allowed only up to 120 days, on higher fees.
Changed since the textbook
NCLAT: CERSAI proves security (3 Jul 2025). In Bizloan v Amit Poddar, the NCLAT held that a security interest registered with CERSAI proves secured status in liquidation, though not registered with the ROC. Source: LiveLaw
NCLAT: unregistered charge in CIRP (14 Feb 2025). In Home Kraft Avenues v Jayesh Sanghrajka, the NCLAT held that non-registration under Section 77 does not by itself deny secured status during CIRP. Source: LiveLaw
5 free practice questions — tap an option
Five practice questions from this unit. Answers lock on the first tap, exactly as in the exam, and an explanation opens underneath. The Mock Centre has all 179 questions on this unit, from easy to tough, with caselets and key-in numericals, why every other option is wrong and the exam tip — and tracks your score and revision dates.
Question 1 of 5
Under the 2013 Act, must a charge on property situated outside India be registered?
Why (d): Section 77(1) covers charges created within or outside India on property situated in or outside India. (a) is wrong: All kinds of property are covered. (b) is wrong: Foreign property is covered. (c) is wrong: It must be registered.
Question 2 of 5
Eleven months before its insolvency commencement date, a company created a charge to secure an old unsecured debt owed to an unrelated supplier, putting him in a better position. How may this be treated under Section 43 of the IBC?
Why (c): Under Section 43, a transfer, including a charge, for an antecedent debt that puts a creditor in a better position than in a liquidation is a preference if made within one year before the insolvency commencement date (two years for a related party), unless made in the ordinary course of business; the Adjudicating Authority may reverse it. (a) is wrong: Unrelated parties are covered for one year. (b) is wrong: The look-back is one year for unrelated parties and two for related ones. (d) is wrong: Knowledge is not the test.
Question 3 of 5
What must the Registrar be satisfied of before allowing late registration under Rule 4?
Why (c): Rule 4(1): the Registrar must be satisfied that the company had sufficient cause for not filing within 30 days. (a) is wrong: Repayment is irrelevant. (b) is wrong: No such agreement is needed. (d) is wrong: Sufficient cause is needed.
Question 4 of 5
Whom does the Registrar notify after receiving intimation of satisfaction?
Why (c): Section 82(2): he sends the charge-holder a notice to show cause why satisfaction should not be recorded. (a) is wrong: The RBI is not notified. (b) is wrong: Shareholders are not notified. (d) is wrong: Auditors are not notified.
Question 5 of 5
A bank proposes to classify a borrower's account as fraud. What did the Supreme Court hold in SBI v Rajesh Agarwal (2023)?
Why (c): In SBI v Rajesh Agarwal (2023), the Supreme Court held that the principles of natural justice apply: before classifying a borrower's account as fraud, the lender must give him a notice and an opportunity to be heard and pass a reasoned order. (a) is wrong: The Court required a hearing before classification. (b) is wrong: Lenders classify accounts; the RBI does not do it for them. (d) is wrong: No court order is needed, but natural justice must be followed.
0 of 5 answered.
Traps in this unit
A corporate guarantee is not a charge.
Stock sold before crystallisation is free of the charge.
Crystallisation needs no court order where the deed names the event.
Practise all 179 questions on Unit 14. The free CAIIB demo opens Units 1–2 of every paper with full explanations; the BRBL Online Mock Centre unlocks all 5,800+ BRBL questions, the full-length papers with caselets and key-ins, module mocks and Smart Revision for 18 months (₹1,499).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. CAIIB content follows rules and developments up to IIBF's cut-off of 30 June 2026 (where a rule changed later, the update box says so); verify from official sources before relying on them in practice.