La oBankrq &Negotiabe Trstsome

State eaput People

Teroi toby
Govement.

Fovengn?
oe need tate into accoun e Cant deal
e

the ate oh an economC

Ssfem o the
economYSneeced tsad he Sute. The ace a
etonomy Tade And hexe enters dhe Con
edonom
cepr
ase
aqsosth aNatoral income hh's
dec'des by prchasig po hen dke
Pen Copta înome s decded. The maunng IS
to ase the Nalonl name kak
pe-dk
plocgs on. impobtont sole d the Banhr
Sectoo Came into place h e e xise Nao-
nal incore monebi,it
 bankb
do need
Why e

and
locns deposHivq money iongo
takv
takg
help ond ppot
nvetment #f
The Stockg tsade
ane "Moneu

bonke iranca skhfons

ane all
nancia nshaions c e ules Can't be bank
T anaal thdions stantesn n Bobaloi,
me
Eapy l e
The Concep Banng Come to ve a ousf Thosf o
economu
ne Scam hoppenesin 992 involving Hla
Mere-rom is Ke Con undewtand haf e
banka get nvalved
Niaom modi
hon e
Cam Hene
doed
bank 's hels tole ad ahecd n even
hey don kdos hoppenir9 Haw do
e Connecthe
 Ihe
banPs olloc PotGp
ate auhy lateu taten Au paed e bequ la
ons o allons e.old
one ea Ten har bonk
don'krox hon lo rard le ond ent to thoaers.
Then loabhod mehsa
took Bereichs om dhoe bonks
bong
he wed lo colecl
mone Ond ton on nven
nvek hwe
ao
tontlaene Companies hoe e to noeahe
46aond ehcd 4fo hoe folderb
LconomaEaoa
ne Dsfabi o Money Bd hene
invesfe
invesfedGo
much n 4Re hoe morke pheJe
ronys
ard theoe
Concentto at oply ome
and ome people
people ond
lond^
hoppened"money Ourdery'
hopmed a enadovalouceny1 . Thee ams
love als
alha
fanchan zBons

Paimanyacor econdon4 funchou

',Occepig depos nblea
(sontivq long vice
Deali in oeqn

,ndenn hg
5. Loecon hacity
09enc
 Per on
-loo

(B ank has
l-loo

Bank quu
Lendn
Some Saunas) loa to othey ot

Compore
15 Tndduals
R-oo +5 ntee
The pa loan to

Psoblems accoby economs Banks

The Gpeod on uhlchlesfedom Dac-2o
un
une 2001 as
bbought on
by
mostetage ciss Vubpaime
and tax enStandands #al led
to collapse a
motgage indest7y
One
o he
of So (alled
Caue
shihaled toons SuJy la8l unil Reagan fecason
hfch oised ntael monehan polfy
iadeyb cunb htoh mtlasn
ohas he Paoslem -sh Bon
Bank
hyiod Mone loundag
 Mehta's Tade Mechahsm

Bank X Bonk B
ake BRs Pbmsed to fay onDay2
issued
kushad Mhta

T-08-2o

Bones a yoench 0Dd Bonkus s an italan

Kord shich is alled as Bench Tld Ttaien

moneq
chaygens sene not
caled Banchied. They
tbed to
ted f On berches and
openly on the steet nance inexchanged monty tal
qenman4 Ih Centsy
2000 Bc Babylon The pesple ased to go b
and tonple
depost moneuy oven heae. hene KaD

toin eligonstonples & people

Skprd opril i
Romans Req alated he Pinde ban
Asminsrarrd -Decnfsalsaion.
sistotte &mohoadanddf -
Collectiq er
inter
mmoxa& anvatusal.
4e mdde 12h Centuny Benka oere ekabidd
in vene Gevoa
Mone leners n Torence -14 h contay-The
est 18 9ea roney eon.
 System
Nevethles th bankiq o Trsia othealo.en
Engkv n Enaland the popenbankuq is staste
extal'shina Royal Exharqen. Bian has
Colonalse many eons n the Aord h e Roua
rebangen 2sed to rcorge Cwmency om Bsitaun
e Ban coay otaonsachon s deposn n
lost
CrO Sometime hey beliain COKn
sed to depos oth he q06 SmA.
Cs SmA uwed o cdpo give Bank note o
hase ssho depasies moneySo e God Smihs
got healenalir mone lev Ca
nd aten had hey Came oh a noAo
plantt
they sed o o some
moneyo depositos
a9
depos hiq And en th e lepse
o ime (oan Sustem a Stasttd

Canle-kme te qovt ase

to take money om gold Smdhs rd
agn
people las bele Gol Smhs deposi
S (qovt ars e ovt d e canco
a Cuwoen account ha dhe depotos tn
take dhe money heneven dey naeded inlGy
 And ateo 692 these a e issung bodd shaong
Ond
prope Bankiq shskm ob l d o t's
O he Psopen Banht Sustem has estallhs
Englond

The Monepoly money s gueno

- o8-20o8

Bankgn Tfa
Banks Trdia -Andent tomodn
Tn 1920 he Tpoiad Ba a etobshed Mch
men qed oec Poi doncy ban af Caafa Boney
Madya b Pasin npeia Bonk a
Resove Benk oTrdia Ad e Rexve
Ban a Trda Ack 143 eaka about he
ato Cash o ) Pakse shch es tote
odmaon Reavc Bant Tdia al known
Centoal Bank PBT 00s
gianpo fo acmpas
ohs to issut os ocke a qovenme to Ban
RBT haa e Gols Reserwexs ohch eve the mone
incuaton The _hous be n
olRoee
arcoare th
ReD makey nveatmends n mall Sale Tdushie
ReT pints ndte Cogthols catla-son at mney
 ano Calcalaes Cashlo de ?nfe
dedde 9t
sate

Nadfona)?2adon a Banta 9

ank ane motant

NaonoadRora lsa
to he bona sfo.1
havenaltsed undy. anka o a e
Pushunds
Push
tooads Qecdors
anted 4o
o taaqe
o
+e.
thahe Gl
psomote qpoth 9Osth
ta
9osthn . ad t
expopt to
agoceltuae &ma
do develo p a ouag n e enttePlena
nes entsepk
bksand ea
Ty pes s Banks
Naasimam
Re uc CommrIfee yeport
Bank a
Banko pe Tnda
quladon
Re quaton
eaaliable Tss
Thasumand
A
 Rexenwe Bank Toka

Co-opatwe Banlg| Commeal Bonku DeveoPmont onks

chesaled sSlonscheluel
short k e Bark)
SIDB
Cedf

PubileSector8 NARAR DD
:Con tennm Poxeran NHB
old ne povatc
Secoy B m Ravnlk.
ocal AeaB
Reqioval RaaR
Naraimhom Commifee Repout3 T ecommendk
Centain eonqes ertain usfemy at elemut,
to be doe kve
done phch is povideso
(9 libeazaton
Bankiv stem e Coxt in

To undertand
oas cuded uo
H pats
-119 Repo

The becomwmerdaons made kasncveasvg Gpral

aloiwg Sectos Centalbaon a Bon
Prvae

Pystenoen bons
1208/20o
The Recent leladn mce n Engbud detn sha
bonks ne al abou and not e Rankrg
Tioo temb fo
nee C nderakand asan bok
a

busines Concened.
Banken
2 Cusrome

Banken
6ung Comm sSion
Bank qulason Acf -(24a
Sfak eank aHydoabrs vs TMeenksh. 2a.
The
tem baakon
ten accodiq fo
Amican Susfem
se bboactkense o s apta. ewbasun
Capihal, sock bxken PanceaF de.
Dn am
tn Ca evan stock bsoka a e (ale bank
Tsabasus deals nelaudia Credls
bonk
Bank Could be iuad o
Company
e a petn ohwne Cne one open de
a daposh money das than b
 cheuk
The Bankq bastas Shas sepoi CuvO.
The bank ma dea S mony numben aNegofiable
inatrumen Aoy me cheeks. z bane doan issae
aCcepg N.F +hey ae ro Condd
aBanks
Ranking d - 2os4 .accoudi fto shch Barki s
a
qwn excduve dafinon ohch
mean hioh
doan nvolve banki
Tanans Lao
Han Bona- Baok
Sugreason
Hats A banka s one
cohois
s banas och isdaal q azdvanily caurse
hon hs
tshom snhe ddalon moneu cheau
doaon on dam 6)
Cuent account acds a
banki Par g PatCe
n
ssunq eequ a
Tn he osd?roay Coue c Bainegs
TASua a cheaju
av pouince o Cwu A«ou
Cne
imoans elemens n Dntan
Omeon Ostintion
a
Depos
1,sun
Hasbery Danion A Abank ens an Vidna
Partnexahpism a Coman

hine srous be main odemuso e bo

sineks owho nduch
DeposAcour
Cwnk Account
ASue 3 ceau

Advontaqes a Cnend Acout dhey Can do

depa
oo Cheajuea
Cheapu L sde Chequg
Bearey
Chequg
cheau
T acom wden tes Oden t onay
Cheajue othousse s beaes Cheque.

Paqes ays #ahee p"hos e nees to

Considan n Banei bunds
Take depsst cous-- to kave provison to
t

Take Caneu Acoun

Tasu cheauy
Collec CooSe o uncosed ehpy
 he o bonkiq includs body Copaatsaccorig
to paaN.

slo82
Bank in qenealSnse mean Colleckon a Sormein.
DeposH Collecon Somehinq n one ace
ExBlod Banks, Rive bauk

i8 o8/20
KYC kno Vow Ctomer.
nden sec- Hb he banks volae te kc
quidelnc he a e Punshoble

un cons Bank
a. Depon aA
Accephim Depossb
2,Gve oond qasn nteres

3 Cned Cash

FoR vs H 1848

Tn s Cole e Judqe erplanecd kn bhn

he Banka f Custome

Mone hen pad into a bank.

Ceases atoqae
o e te moneyo the Psincpal i s bythn fhe
 The
the money he bankan oho s bound to so
monRy
anequivalent by payna a imlanum to
depos ho hen he s asked tos .
he money paid nt o a banka's îs money

Kron by he panapal to be placed *h

c be unden the Conts
o puopose
bankn
2 - o20

Relations Batuo een Banke

& Casroma-
Customa
Debtor , Cedto
2, Toustee Benetcio
quva
pecol
3Pnpal Agut
6, Lesso and Lessee
7,Baor Ballee
Bank s he suhee &
Customen th bne.
s
cany Bene aasu the eal osno
Depon otmon e s Ahe
the Pia
uncHont bn
aonera g Soosal RoAaohps eank Bun
u
 GenerakDelafionahip bethoeen utome
Banke
Tf Coule be ddanfo tu
JCustomen Banke
2,Debfos C e drtor

Custome Bank

The Banken acs a trutee neveathleas bd he bos

Centain siqhts toore an a tauwtee. He hau Can we

he value that hos depos tec 1h him ond Con make

POos 0 o kem
anlacron
Bank Cutome
Depos tenhe Bonk
Debto Cned tor
2Coan om Bonk
Ce dta Dero
Sahe Cutod Baee Baloy
P Locken
sod (essee
Colerion dCheaju qen Painopal
Pubch02 0 da Debfos Coe ditoY
7. Payee aDat Tauafee Beniiaaly
Pledq Poanealdgc) Paunee (Pledren
Movtaoq Motgagee Mostqaq0y
4 Stgndvo Tnstracon AGen Pain&pal
Slelfechase Secale qunt Pina pu
B CBomn 9L.
2 Money Dopsied' bd inbudion
nt qi tov s
Tyatee
disposa)
Bentiay
3 e ltby Mistake
uhanes gvenordede
Toutec Bensta
qe Poina
5Hapothecabon Hpothecade Hypotheato
Cale LaL

Ladbioke vs Todd-19Hy
ayO VS yods Bank limded
Folly Vs H
Jaa chim Son VS Sfss Bank
Cbrp
OYp.

an Ram Tctotech vs Dena bank.

ladbroke vS Tode
bonk
bank opene
Tn s aeladbsoke vs Todd
an acCount o a
s t sara chon handed fo the bankRthga
toy Coll or
cheaue c he ho slolne ont
a
on
paon need not
held
have o
ot deals th
a

h bank baore he g e
tadus oa Cutomo
Te Ccuomen shofu sll be qiven a thc
The
he bank ecey
moi
mon0y dhqae ond aqyod
10
pern an accountn fhe bank
hoevon holds e cheok 0sth o amount on it is
he An
oh dheeoen #
No qoodils needed or cheqyue
ithopetto an acoun onSactou mokio e

avo V LAyod Bonk rnded 2

becomo
In thS Case here happeeo o
od Cenues
due to rot enqyu o the ddall odhe doaaye7
losd Oiont Sa tad a bonk doan' kae te duu
brg amako detechr
Seut the Couns hel af the bok 23 hels to be
neqlfqent (depou of e proteakon dec-8u
ac Pevent tan hauvgSomio

A bonk koas negliqer os not is to be deused ubectiwy

on no s to be deddec dubjetvely yom heStanne
ot a seaonable man Cwuuvq on buinas o bankianel
en ceavo urtivq too do in uch
Ao pofeed t
to
mavnu al s Calcudatd
i Cusome) aqans aus
34 he dudy he bons fo quax
 oley
ole V H (i848)
This Cae deinas he olafiouhlp betoeon the barta
and customen

The Cas decidd a he banken doesn ploy the

ole a a tsusee and ho back he money n
the acounto Cwtomes Tnstead he elasiorshio
he
betuween hem s debtos Caeda ohen the
Custom depasis monen he bank beCome
beComelhe
bank money and he Can lens tto
otheeu ta $ome
Sntaest dade And he bank s unden an
oblqarion
to Xpay an eajuivalent ^um to the Curomo on the
Customes 0od,

Joachmson v Soiss Bank

Coaporahon
Tt explasn abou the del a on to the
hundomanta
nature the legal Jelatonshp betocen banken ar
Cestom
TH 3 decided thot a Customa doesn hve a bipt
acfon aqains bank osepaumnt of Sum
unf
unti
he Cutomen makes demond mafon pend
Phe
tme doebn ' s0until Sodh demandis mae
 qonqanom Tnolrh V TDono Bonk
Tn hs Cae pelonm ekirq o o dedon to 1he

bonk to unni'sh t d o h r . 6pnd eft Ctpr

pho s o onojhon oformn bonk
he petione o sereved 5 cheau) pom khim
io buines tzovacton all o dishawounPd. rnd kra
Had a e nfoomadion 6euoselr bespondent lses
ene
a
90$o he sko aukirg the bonk fo poida.
ht's dea nd he bank cued to aue him thoo

he zeladonshp bon he Cusfomb& à bonk eajube

e
bece n e ruHa i t cabponed to a
thsdpomty payed
The Judqe had fhat in ths Cizaamyfan T do na

indony
on qsound to inFeere bh the endossemo
a Apnexune and
alo do oin ony
qpoond to issue Gny dtaech on h to veaod dtiale
25 o8-20

Raht to Conqe atexet Tnddena clomeola

The banker ha
siqht fo claqe ore
On He amon
Vela banka loantaken bq Cusomen vice
ao pys ho nfonert
hose oho dopoo os com
money n bk
e- Go
*-6 Bantn Regulad'g A
Rtohes Bankay
zeneu oon
peod
R'ahe o fhe qod caetor to sekain he a
unt
un he edtakaD by depto» Pa ba