Banking Law

Unit 1

Banking System in India a. History of Banking in India b. Kinds of Banks and their Functions c. Banking Regulation Laws: i) Reserve Bank of India Act, 1934 ii) Banking Regulation Act, 1949 iii) The Negotiable Instrument Act, 1882

• Introduction — Concept of Banking
• Structure of Indian Banking system
• Types of Common Banking Institutions
• Banking Regulation Act, 1949
• RBI rules & Notifications (Banking) 1949
• Negotiable Instruments Act, 1881

Unit 2

Social control and general norms of Banking a. Bank Nationalization and Social Control over Banking b. Relationship between Banker and Customer: i) Legal Character ii) Contract between Banker and Customer iii) Bank’s Duty to Customers iv) Liability under the Consumer Protection Act, 2019

• Services: Types of services, Deficiency-meaning, Denial of Services, Commercial & Professional Services, Medical Services

Unit 3

Lending, Securities and Recovery by Banks a. Principles of Lending b. Position of Weaker Sections c. Nature of Securities and Risks Involved d. Default and Recovery e. Recovery of Debts with and without Intervention of Courts / Tribunal: i) Recovery of Debts due to Banks and Financial Institutions Act, 1993 ii) Securitization and Reconstruction of Financial Assets and Enforcement of Security Act, 2002

• Powers and functions of Debt Recovery Tribunal and Debt Recovery Appellate
• Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI)

Unit 4

Banking Frauds a. Nature of Banking Frauds b. Legal Regime to Control Banking Frauds c. Recent Trends in Banking: Automatic Teller Machine and Internet Banking, Smart Cards, Credit Cards

Unit 5

i) Regional Rural Banks Act, 1976 ii) The Reserve Bank-Integrated Ombudsman Scheme, 2021 iii) Payment and Settlement Systems Act, 2007