Banking Law (Elective I, option B)
Solapur University · LL.B. Semester 3 · DSE-I(B)
Unit 1 — Introduction
Nature Definition of Banking · Evolution of Banking in India- Different Kinds of Banks · Commercial banks: Functions · Essential Functions · Agency Services · General Utility services · International trading service · Information services · Emergence of multifunctional dimensions · Systems of Banking: Unit banking, Branch Banking, Group Banking and Chain Banking
Unit 2 — Law relating to Banking Companies in India
Control by government and its agencies · Need for – elimination of systematic risk, avoidance money laundering, consumer protection, promotion of fair competition on management · On account and audit · On money lending · Re-organization and re-construction · On suspension and winding-up · Control by Ombudsman · Reserve Bank of India
Unit 3 — Contract between Banker and Customer: Their Rights and Duties
Customers: Meaning · Legal Character of Banker –Customer relationship · Rights and obligations of Banks · Right of Set-off · Banker’s Lien · Right to charge interest and commission · Obligation to honour Customers‟ cheques · Duty of confidentiality · Garnishee Orders · Accounts of customers · Current Accounts · Deposit Accounts · Joint Accounts · Trust Accounts · Special Types of customers: Lunatics, Minors, Agents, administrators and Executors, partnership firms and companies · Consumer protection: Banking as Service
Unit 4 — Control over Banking
Nationalization · Evolution of Central Banks · Characteristics and Functions of Central Banks · Central bank as banker and adviser of the state · Central bank as banker’s bank
Unit 5 — The Reserve Bank of India as Central Bank in India
Objective and organizational structures · Functions · Regulations of the monetary system · Monopoly of note issue · Credit control · Determination of Bank rate policy · Open market operations · Banker to Government · Control over non-banking financial institutions · Economic and statistical research · Staff training · Control and supervision of other banks
Unit 6 — Deposit insurance
The Deposit Insurance Corporation Act, 1961: objects and reasons · Establishment of Capital of DIC · Registration of banking companies insured banks liability of DIC to depositors · Relations between insured banks, DIC and Reserve Bank of India
Unit 7 — Negotiable Instruments
Meaning and kinds · Transfer and negotiations · Holder and holder in due course · Presentment and payment · Liabilities of parties
Unit 8 — Lending by banks
Principles of good lending · Securities of bank advances · Pledge, Mortgage, Charge · Goods or Documents of title to goods · Life Insurance policies as security · Debentures as security · Repayment.- Interest : Rule against penalties · Default and Recovery · Recovery of debts due to Banks and Financial Institutions Act, 1993 · Establishment of debt recovery tribunals -constitution and functioning
Unit 9 — Recent Trends of banking system in India
New Technology · Information Technology · Automatic Teller Machine and Use of Internet · Automation and Legal Aspects · Smart Card · Credit Cards
Unit 10 — Reforms in Indian Banking Law
Recommendations of committees: a review · Janakiraman Committee Report on Securities Operation of Banks and Financial · Institution(1993) · Narasimham Committee report on the Financial system (1991 & 1999) · Select Bibilography: · 1. Basu, of A Review Current Banking Theory and Practice (1998) · MACMillan. · 2. Ross Cranston, Principles of Banking Law (1997) Oxford · 3. M.L.Goyale, The Law of Banking and Bankers (1995) Eastern Law. · 4. M.L.Tannen, Tannen‟s Banking Law And Practice In India,(2000), · India Law House New Delhi. · 5. S.N.Gupta, The Banking Law in Theory and Practice(1999) Universal, · New Delhi. · 6. G.S.N.Tripathi (ed),Sethi‟s Commentaries On Banking Regulation Act-1949 and Allied Banking Laws (2000) Law Publishers Allahabad. · 7. S.N.Gupta,Banks and the Consumer Protection Law,(2000) Universal New · Delhi. · 8. Mukharjee T.K. Banking Law and Practice,(1999),Universal, New Delhi. · 9. Janakiraman Committee Report on Securities Operation of Banks and · Financial Institution (1993) · 10. Narasimham Committee report on the Financial system (1991) and Second report (1999) · 11. K.C.Shekhar, Banking Theory and practice (1998) UBS Publisher · Distributors Ltd., New Delhi. · 12. K.Subrahamanyan, Banking Reforms In India (1997) Tata Macgraw Hill, · New Delhi. · 13. M.A.Mir, The Law Relating to Bank Guarantee in India (1992) · Metropolitan Book.New Delhi. · 14. R.S.Narayana, The recovery of Debts due to Banks and Financial · Institutions Act,1993(51of 1993), Asia Law House Hyderabad.