Banking Law (Optional Paper)
Hidayatullah National Law University · LL.B. Semester 7 · LLB-O-706 (Sem VII) / LLB-O-905 (Sem IX)
Unit I — INTRODUCTION TO BANKING SYSTEM
Evolution of Money and its circulation · Evolution of Banking system and its history in India · Concepts of Bank, Banker, Banking and Bank Regulation · Banking Institutions- Structure and functions —the different types of Banks viz. Central Bank, Scheduled Banks, Commercial Banks, Co-operative Banks, Specialized Banks, Regional Rural Banks (RRBs), NABARD, Private sector Banks · Reserve Bank of India as a Guardian of Indian Banking System: History of RBI Act and relation of Banks vis- a – vis RBI
Unit II — RELATION BETWEEN BANKER AND CUSTOMER
Definition of Bank, banker, customer Types of bank accounts Process of opening bank accounts · Legal character of banker-customer relationship Kinds of customers Rights and obligations of banker and customer · Principles of lending by banks Personal banking and corporate banking · Banking ombudsman scheme · Laws governing Debt Recovery Process in Banks- IBC, SARFAESI, CPC
Unit III — LEGAL ASPECTS OF NEGOTIABLE INSTRUMENTS
Introduction to negotiable instrument Definition of Promissory Note, Bill of Exchange. Cheque, Drawer, Drawee, payee, Holder, Holder in due course, inland instrument, foreign instrument, negotiation, indorsement, inchoate stamped instruments, presumption as to NI · Crossing of cheque · Criminal liability on dishonour of cheque · Law relating to payment of customers’ cheque · Rights and duties of paying banker and a collecting banker
Unit IV — REGULATION OF BANKS: CHECKS AND BALANCE
Introduction of Banking Regulation Act · Prohibition of certain activities in relation to banking companies · Acquisition of banking companies · Suspension of business and winding up of banking companies · Powers of central government towards banking companies
Unit V — CONTROL OF BANKS IN INDIA
Nationalization of banks and social control · Protection of depositors Promotion of underprivileged classes Narsimham committees I & II · Control over banks by RBI · Financial inclusion · Privatization of banks
Unit VI — CONTEMPORARY CHALLENGES AND EMERGING TRENDS IN BANKING SYSTEM
Banking and technology- e banking, mobile banking, digital payment gateways · Risk Management Moratorium Insurance Risk of Mule banking · Foreign banks in India · Financial literacy Cryptocurrencies/plastic money · Impact of Artificial Intelligence on the dynamics of banking sector Use of Robots in bank