Indian Banking System

Paper Code: 
AAF 414
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

To acquire specialized knowledge of law and practice relating to Banking

Course Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

 

 

 

 

 

 

 

 

 

 

AAF 414

 

 

 

 

 

 

 

 

 

 

Indian Banking System

CO 139:Acquire knowledge about the banking system, regulatory framework of banks, constitution of banks and also about licensing procedures of banks.

CO 140: Awareness about the about powers and functions of RBI an appointment of its directors.
CO 141:Understand about IT in banking and various KYC norms in banking sector.

CO 142: Understand the concept of negotiable instruments and duties of paying and collecting banks.

CO 143: Understand various cases on responsibility of the collecting bank.

Approach in teaching:
Interactive Lectures, Discussion, Tutorials, Reading assignments, Interactive White Board, Incorporating technology in teaching

Learning activities for the students:
Self learning assignments, Effective questions

Evaluation of PPT's, Quizzes, CA Test, Assignments, End Term Test

 

9.00
Unit I: 
Overview of Banking System
  • Structure of Indian Banking System
  • 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 II: 
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
9.00
Unit III: 
Loans and Advances
  • Law, Practice and Policies governing the employment of the funds in the hands of the banker with special reference to the lending banker
  • State Policy on Loans and Advances - Priority sector advances  and  socio-economic  policies  -  Financial inclusion  -  Self-  Employment  Schemes  -  Women Entrepreneurs - Small Scale Industries  - Agricultural Finance, Export Finance, etc. – Micro Finance -
  • How the banker profitably uses the fund - Call loans and loans repayable  at  short  notice  -  Loans  and  advances  - Overdrafts - Legal control over bank's deployment of Funds
9.00
Unit IV: 
Securities for Banker's Loans
  • The legal issues involved in and the practice governing the different kinds of securities for banker's advances and Loans, Guarantees, pledge, lien, mortgage, charge - subject
  • matters of collateral security, Corporate Securities
  • Documents of title to goods
  • Land and Buildings
  • Book debts
  • Life Policies
  • Factoring;  Bill  Discounting;  Bank  Guarantees;  Letters  of Credit; Commercial Papers
9.00
Unit V: 
Risk Management in Banks
  • Risk Management: An Overview, Credit Risk Management
  • Liquidity and Market Risk Management
  • Operational Risk Management
  • Special Issues- Risk Management Organization; Reporting of Banking Risk; Risk
  • Adjusted Performance Evaluation
  • Basel III
  • Ethics and Corporate Governance in Banks
  • Ethics and Business
  • Corporate Governance
  • Corporate Social Responsibility
  • Governance in Financial Sector
References: 
  • Davar S.R., Banking Law & Practice, Vikas Publishing House, Delhi
  • ShrivastavaP.K.,Banking Law & Practice, Himalaya Publishing House, Bombay
  • 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.
  • Ghosh, D ., Banking Policy in India, Allied Publications, Delhi
  • 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
Academic Year: 
2020-2021
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