Law of Banking and Negotiable Instruments

Unit I

Indian Banking Structure: Origin, Evolution of Banking Institutions, Types and functions of banks, Commercial banks, functions, Banking companies in India, Central Banking: Organizational Structure of RBI · Major functions of the Reserve Bank · Bank of Issue · Banker to the Government · Bankers Bank · Lender of the Last Resort · Regulation of money/s and monetary mechanism · Domestic and Foreign currency · Credit Control · Exchange control · Fixation of bank rate policy formulation · Control function of RBI over Banking and Non Banking Companies

• Introduction — Concept of Banking
• Structure of Indian Banking system
• Types of Common Banking Institutions
• Functions & roles of financial institutions
• RBI rules & Notifications (Banking) 1949

Unit II

Banking Regulation Act, 1949 · Control over State Bank of India, UTI, IDBI, RRBs, Local Banks, NABARD and other Financial Institutions · An Overview · The role of banking institutions in the socio-economic development of the country · priority sector and Credit Guarantee Scheme · Social Control of Banks · Nationalization of Banks · Priority lending · Protection of Depositors · Promotion of underprivileged classes · Development work and participation in national economy · Narasimham Committee Recommendations – 21st century reforms and technological revolution in Banking Industry

• Banking Regulation Act, 1949
• Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)

Unit III

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

• Negotiable Instruments Act, 1881

Unit IV

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 · banker’s right to set off · Appropriation of payments · Garnishee order · Customer’s duties towards his banker · Paying banker and collecting banker · Bills in sets · Penal provisions under NI Act · Banker’s Book Evidence Act

Unit V

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 · Ancilliary Services and e- banking: Remittances · General, DD, MT, TT, Traveller’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 · 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