Indian Banking System

Paper Code: 
BCS 614
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

To acquire specialized knowledge of law and practice relating

to Banking

9.00
Unit I: 
Overview of Banking System

·         Regulatory Framework and Compliances

A. Provisions of RBI Act 1935, Banking Regulation Act 1949,

Prevention of Money Laundering Act, 2002

B. Government and RBI's Powers

·         Opening of New Banks and Branch Licensing

·         Constitution of Board of Directors and their Rights

·         Banks Share Holders and their Rights

·         CRR and SLR Concepts

·         Cash-Currency Management

·         Winding up - Amalgamation and Mergers

·         Powers to Control Advances - Selective Credit Control – Monetary and Credit Policy

·         Audit and Inspection

·         Supervision and Control - Board for Financial Supervision – its Scope and Role

·         Disclosure of Accounts and Balance Sheets

·         Submission of Returns to RBI

Corporate Governance

9.00
Unit II: 
Legal Aspects of Banking Operations

·         Case Laws on Responsibility of Paying and Collecting Banker Indemnities or Guarantees - Scope and Application

·         Obligations of a Banker

·         Precautions and Rights

·         Laws relating to Bill Finance, LC and Deferred Payments

·         Laws Relating to Securities - Valuation of Securities - Modes of Charging Securities

Lien, Pledge, Mortgage, Hypothecation etc. - Registration of Firms/Companies - Creation of Charge and Satisfaction of Charge

9.00
Unit III: 
Banking Related Laws

·         Law of Limitation - Provisions of Bankers Book Evidence Act - Special Features of Recovery of Debts Due to Banks and Financial Institutions Act, 1993

·         TDS

·         Banking Cash Transaction Tax

·         Service Tax

·         Asset Reconstruction Companies

·         The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

·         The Consumer Protection Act, 1986

·         Banking Ombudsman

·         Lok Adalats

Lender's Liability Act

9.00
Unit IV: 
Banker - Customer Relations

·         The legal relationship between the Banker and Customer, the Multifarious Transactions between them and the Rights and Duties of the Parties springing out of such relationship

·         Nature of Banking Business

·         Legal Nature of Banker-Customer Relationship and

their Mutual Rights and Duties

·         Special Categories of Customers, such as Corporations,

Partnership Firms, Hindu Joint Families, Unincorporated Bodies, Trusts, Joint Account Holders, Minors, Nominee Accounts, Liquidator, Mercantile Agents, Non-Resident Indians, Foreigners and the Legal Incidence of each

9.00
Unit V: 
Banker - Customer Relations

·         Different Types of Accounts such as Current

Accounts, Savings Bank Account and Fixed Deposits

·         Other Transactions between Banker and Customer such as Safe Deposit Vaults, Financial Advice, Letters of Introduction and Other Services Rendered by Banks

·         Special features of the relationship between banker

and customer - Their mutual rights and duties - lien - Power to combine different accounts - Secrecy of account

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

 

References: 

Davar S.R., Banking Law & Practice, Vikas Publishing House, Delhi

• Shrivastava P.K.,Banking Law & Practice, Himalaya Publishing House, Bombay

• Shrivastava R.S., Nigam Divya, Management of Indian Financial Institutions” Himalaya Publishing House, New Delhi

• Tannan M.L.,Banking Law and Practice, Indian Law House, Delhi
• Bhole, L. M., Financial Markets and Institutions, Tata McGraw Hill, Delhi.
• Ghosh, D ., Banking Policy in India, Allied Publications, Delhi

 

Academic Year: