LAW OF BANKING AND NEGOTIABLE INSTRUMENTS

Unit I

Evolution and History of Banking in India · Social Control and Nationalisation of Banks in India Arguments in Favour and Against Nationalisation of Banks · Salient Features of Reserve Bank of India Act, 1935 · powers and Functions of RBI · Salient Features of Banking regulation Act, 1949 · Concepts of CRR and SLR · Types of Banks and Financial Institutions · Function of Commercial Banks · Social Banking · Amalgamation and Mergers of Public Sector Banks in India · Privatisation of Banking Sector in India · Modern Banking and Technology · Internet Banking and Mobile banking · Concepts of RTGS and NEFT

• Introduction — Concept of Banking
• Structure of Indian Banking system
• Types of Common Banking Institutions
• Functions & roles of financial institutions
• Banking Regulation Act, 1949
• RBI rules & Notifications (Banking) 1949
• Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

Unit II

Definition of Banker and Customer · Banker Customer Relationship · Rights and Duties of the Parties springing out of such relationship · General Relationship Between Banker and Customer like Debtor and Creditor, Principal and Agent, Trustee and Beneficiary, Bailor and Baliee, Lessor and Lessee etc · Special Relationship between banker and Customer like Banker’s obligation to honour the cheques · Over draft · Banker’s General Lien · Lien and Implied Pledge · Banker’s Obligation to Maintain Secrecy of Customer’s Accounts · Termination of Relationship · Special Types of Customers such as Corporations, Partnership Firms, Hindu Joint Families, Unincorporated Bodies, Joint Account Holders, Minors, Non-Resident Indians and Foreigners · Different Types of Accounts such as Current Accounts, Savings Accounts etc

Unit III

Salient Features of Negotiable Instruments Act, 1881 · Definition and Characteristics of Negotiable Instruments · Deemed Negotiable Instruments · Holder, Holder in due course and Holder for Value · Types of Cheques · Crossing of Cheques · Information Technology Act, 2000 and Truncated Cheques · Endorsement and its kinds · Effect of Endorsement · Liability and Discharge of Endorser · Dishonour of Cheques by Banker and its consequences · Liability Under the Negotiable Instruments Act · Prosecution of Company and its Directors · Pecuniary and Territorial Jurisdiction

• Negotiable Instruments Act, 1881

Unit IV

Paying Banker · Obligations of Paying Banker · Limitations on Banker’s Duty to Honour Customer’s Cheques · Payment in Due Course and when Payment can be Refused · Statutory Protection to the Paying Banker · Collecting Banker · Obligations of Collecting Banker · general Duty of Collecting banker in Collection of Cheques · Conversion · Statutory Protection to the Collecting banker

Unit V

Loans and Advances by Banks · Pledge of Stocks and Securities · Advances secured by other Collateral Securities · Advances against Gold, Life Polices and Documents of Titles to Goods · Recovery of Loans · Recovery through the Debt Recovery Tribunals · Recovery through Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) · Bank as a Guarantor · Letter of Credit · Types of Letters of Credit · Appropriation of Payment by Banker · Clayton’s Rule

• 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