Banking law and practices

Paper Code: 
COM 503
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcome

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to;

 

  1. To develop relevant knowledge about the Indian banking system and  Compare the Different Types Of Products And Services And Third Party Products Offered By Various Banks.
  2. Differentiate between various innovative banking channels and to select the appropriate payment mechanism for effective transfer of funds.

 

  1. Analyze the features of various negotiable instruments used in banking and to evaluate their role in effective fund transfer and discharge of debt obligation

 

  1. Develop the knowledge about the laws related to various securities for banker'sadvances and Loans

 

  1.   Evaluate and critically examine the role of various laws in effective functioning of Banking Industry in India.

Interactive Lectures, Discussion, Reading assignments, Demonstration, power point presentations

 

 

 

Class test, Semester end examinations, Quiz, Assignments, Presentation, Individual and group projects

 

9.00
Unit I: 
Overview of Indian banking system-

• Meaning, Types of Banks, Functions,
• Importance and credit creation.
• Banking Products and Services –Types of Deposits and retail loans, third party products

9.00
Unit II: 
Banker- Customer Relationship-

• Definition, Types of relationship,
• Banker right and garnishee order.
• Innovative Banking - Meaning, Significance and Features
• Channels of Banking - ATM, internet, mobile, phone banking, POS
• E- Payment mechanism of Banks - plastic cards NEFT, RTGS, IMPS, SWIFT, ECS, payment wallets.

9.00
Unit III: 
Negotiable Instruments –

• Promissory note, Bills of Exchange and Cheque and demand draft - Concept, Feature, Parties,
• Types .Acceptance , Payment and Collection of negotiable instruments
• Crossing of cheques :- Concept and types of crossing.
• Endorsement, Presentment of Negotiable instruments

9.00
Unit IV: 
Loans and Advances

• State Policy on Loans and Advances - Priority sector advances, MSME loans and Advances.
• Securities for banker'sadvances and Loans- Modes of Charging Securities Lien, Pledge,Mortgage, Hypothecation etc. - Registration of Firms/Companies - creation of Charge and Satisfaction ofCharge.

9.00
Unit V: 
Major Provisions related to banking laws

• Banking Regulation act 1949,
• Concept of Financial inclusion and financial literacy
• RBI- RBI Act 1934- Main Provisions,Constitution of RBI & Management, Objectives, Functions, credit control measures

Essential Readings: 

• P.N. Varshney, Banking law and Practice, Sultan chand and Sons, Delhi
• B.S. Khubehandani, Practice and Law of Banking, MacMillian India Limited
• Jain, Khanna, Tiwari, “ Banking and Public Finance” V.K India Enterprises, New Delhi.
• Natarajan S, Parameshwaran R, “ Indian Banking” S.Chand& Company LTD, New Delhi
• Shrivastava P.K.,Banking Law & Practice, Himalaya Publishing House, Bombay.

References: 

• Davar S.R., Banking Law & Practice, Vikas Publishing House, Delhi
• Shrivastava R.S., Nigam Divya, Management of Indian Financial Institutions” Himalaya Publishing House, New Delhi
• TannanM.L.,Banking Law and Practice, Indian Law House, Delhi
• Bhole, L. M., Financial Markets and Institutions, Tata McGraw Hill, Delhi.

Academic Year: 
2022-2023
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