OPTIONAL-II: BANKING LAW

Unit 1

Indian Banking Structure - Origin – Evolution of Banking Institutions – Types and functions of banks - Commercial banks – Functions – Banking Companies in India – RBI - Constitution, Management and Functions - Banking Regulation Act, 1949 – State Bank of India- UTI, IDBI, RRBs’-Local banks

• Introduction — Concept of Banking
• Structure of Indian Banking system
• Types of Common Banking Institutions
• Functions & roles of financial institutions
• Banking Regulation Act, 1949

Unit 2

Employment of funds - Loans and Advances- Guarantees- Advances secured by Collateral securities- Agency Services- Financing of Exports- Special Banking Services –Advances to Priority Sectors and Credit Guarantee schemes- Securitisation Act, 2002.

• Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI)

Unit 3

Law relating to Negotiable Instruments, 1881 Act (Read with the amended Act of 2002) - Negotiable Instruments - Kinds - Holder and holder in due course – Parties – Negotiation- Assignment – Presentment – Endorsement – Liability of parties – Payment in due course – Special rules of evidence - Material alteration – Noting and protest – Paying banker and collecting banker – Bills in sets – Penal provisions under NI Act - Banker’s book evidence Act.

• Negotiable Instruments Act, 1881
• Bankers Book of Evidence Act, 1891

Unit 4

Banker and customer Relationship - Definition of banker and customer – General relationship – Special relationship - Banker’s duty of secrecy, banker’s duty to honour cheques, banker’s lien, and banker’s right to set off - Appropriation of payments - Garnishee order - Customer’s duties towards his banker. · Opening of New Accounts – Special types of customers - Minor’s A/C, Joint A/C, Partnership A/C, Company’s A/C, Married women’s A/C, Trust A/C, Joint Hindu family A/C - Illiterate persons, lunatics, executors - Precautions required in case of administrators, clubs, societies and charitable institutions to open an account

Unit 5

Ancillary Services and E- Banking: Remittances - General, DD, MT, TT, Traveler’s cheques, bank orders, credit card, debit/smart cards, safe deposit vaults, gift cheques, stock invest. · E-Banking - Definition – E-Banking includes - Internet banking, mobile banking, ATM banking, computerized banking –E- banking services – retail services – wholesale services – E- Cheque-authentication-Cyber Evidence-Banking Ombudsman.