Law of Banking & Negotiable Instruments
Guru Ghasidas Vishwavidyalaya · LL.B. Semester 8 · LAIHTT3N
Unit I — Introduction to Banking Law
Evolution and historical development of banking institutions in India · Functions of Commercial Banks · Social Control on banks and Nationalization of Banks · Institutional framework of banking in India · Reserve Bank of India (RBI): Role, powers, and functions · RBI’s regulatory relationship with commercial banks
Unit II — Banking Regulation Act 1949
Business of banking companies · National banks, management of national banks · Control over management · Acquisitions of the undertakings of banking companies in certain cases · Suspension of business and winding up of banking companies · Special provisions for speedy disposal of winding up proceedings
Unit III — Banker-Customer Relationship and Opening of Bank Accounts
Definitions of ‘banker’ and ‘customer’ · General and special relationships between banker and customer · Obligations of confidentiality and exceptions · Law of limitation in banking transactions · Banker’s general lien and right of set-off · Opening and operation of accounts: · Individuals (minors, married women, etc.) · Joint accounts, HUFs, partnership firms, and companies · Government and trust accounts · Operational aspects: Nomination, survivorship, power of attorney, insolvency, and death of customer
Unit IV — Negotiable Instruments and Banking Operation
Meaning and Definition of Negotiable Instruments— Characteristics of Negotiable Instruments—Kinds of Negotiable Instruments— presumptions as to Negotiable Instrument—Promissory Note, Bills of Exchange & Cheque: Its meaning, characteristics and points of Difference between them—Parties to a Negotiable Instrument— Holder and Holder in due course—Dishonour of a Negotiable Instrument—Notice of dishonour—Noting and Protesting— Penalties in case of dishonour of certain cheque · Guarantees: Nature, banker’s rights against surety, revocation and termination · Letters of Credit and Bank Guarantees: Legal framework and practice
Unit V — Secured Lending and Recovery Mechanisms (10 Hours)
Forms of secured lending: Lien, pledge, mortgage, hypothecation · Advances against goods and documents of title · Recovery of debts under: · Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act) · Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) · Insolvency and Bankruptcy Code, 2016 (IBC) · Role of Debt Recovery Tribunals and Lok Adalats · Banking Ombudsman Scheme · Consumer Protection Act, 2019: Redressal mechanisms for bank customers · Lender's Liability: Rights and obligations
- Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI)
- Powers and functions of Debt Recovery Tribunal and Debt Recovery Appellate
- Historical background and constitutional allocation of the subject of insolvency and bankruptcy
- Preliminary under IBC
- Lok Adalats
- Mortgage and Charge [Sections 58 — 104]
- Bailment [Sections 148 — 181]
Unit VI — Electronic Banking and Technology in Banking (5 Hours)
Digital banking: Internet and mobile banking, ATM, e-wallets, UPI · Regulation of credit and debit cards; RBI guidelines and circulars · Electronic Fund Transfers: NEFT, RTGS, SWIFT, IMPS · Cyber risks in electronic banking and legal safeguards · Information Technology and data protection in banking · Technological upgrades in Indian banking sector · Global trends and innovations in banking technology · Confidentiality and data privacy in digital banking