Banking Law

Unit I — UNIT – I

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
• RBI rules & Notifications (Banking) 1949

Unit II — UNIT - II

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 · Securitization Act, 2002. (SARFAESI Act, 2002)

• Functions & roles of financial institutions
• Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI)

Unit III — UNIT - III

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, 1891.

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

Unit IV — 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, 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 V — UNIT – V

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.