Banking: Law and Practice

• Consumer Protection :

Operational Aspects of Consumer Protection Act & Banking Ombudsman Scheme.

• Loans and Advances :

Different Types of Borrowers; Types of Credit Facilities- Cash Credit, Overdraft, Demand Loans, Term Loans, Bill Finance.

• Securities for Banker’s Loans :

Types of Securities; Assignment; Lien; Set-off; Hypothecation; Pledge; Mortgage; Indemnities and  Guarantees; Factoring; Bill discounting; Letter of Credit; Commercial Papers; Bank Guarantees; Book debts; Corporate Securities; Charges.

• Documentation: Types of Documents; Procedure; Stamping; Securitization.

• Calculation of Interest and Annuities:

Calculation of Simple Interest & Compound Interest; Calculation of Equated Monthly  Installments; Fixed and Floating Interest Rates; Calculation of Annuities; Interest Calculation using Products / Balances; Amortization of a Debt; Sinking Funds.

• Calculation of YTM:

Debt- Definition, Meaning & Salient Features; Loans; Introduction to Bonds; Terms associated with Bonds;  Cost of Debt Capital; Bond value with semi-annual Interest; Current Yield on Bond; Calculation of Yield-to- Maturity of Bond;  Theorems for Bond Value; Duration of Bond; Properties of Duration; Bond Price Volatility.

• Foreign Exchange Arithmetic:

Fundamentals of Foreign Exchange; Forex Markets; Direct and Indirect Quote; Some Basic Exchange Rate Arithmetic – Cross Rate, Chain Rule, Value date, etc.; Forward Exchange Rates – Forward Points; Arbitrage; Calculating Forward Points; Premium / discount; etc.

• Non Performing Assets:

Definition; Income Recognition; Asset Classification; Provisioning Norms; CDR Financial Inclusion BC; BF; Role of ICT in Financial Inclusion, Mobile based transactions, R SETI.

• Final Accounts of Banking Companies :

Definition and Functions of a Bank; Requirements of Banking Companies as to Accounts  and Audit; Significant Features of Accounting Systems of Banks; Principal Books of Accounts; Preparation and Presentation of  Financial Statements of Banks; CMA Format; Accounting Treatment of Specific Items; Preparation of Profit and Loss Account;  Comments on Profit and Loss Account; Important Items of Balance Sheet; Disclosure Requirements of Banks; Additional Disclosures prescribed by RBI; Disclosures required under BASEL norms.

• Risk Management in Banks and Basel Accords :

Introduction to Risk Management; Credit Risk Management; Liquidity and Market Risk Management; Operational Risk Management; Risk Management Organisation; Reporting of Banking Risk; Risk  Adjusted Performance Evaluation; Basel- I, II & III Accords.