BANKING  LAWS     Objectives  of  the  course   The   modern   society   functions,   contrary   to   the   old   barter   system

,   on   monetary   transactions.  In  a  developing  country  like  India,  the  banking  system  takes  off  and   becomes   quite   common   even   among   the   common   people.   The   services   banks   render   to   the   general   public   do   have   a   significant   contribution   to   the   development  of  the  economy.  Pari  passu,  the  security  to  the  assets  money  as  well   as   other   valuable   belonging   to   individuals   and   family   units   is   to   a   large   extent   assured  through  the  service  of  the  banks.  The  variety  of  assistance  tended  by  the   banks   to   the   common   people   and   business   community   cannot   be   overemphasized   in   this   context.   The   process   of   the   working   of   the   banks   and   the   legal   control   over   them   as   well   as   the   protection   to   the   consumers   of   banking   services  are  areas  which  a  student  of  law  is  necessarily  familiar  with.   Teaching  Methodology   a. b. c. d. Discussion  Method   Case  Discussion   Presentation   Moot  Court  

Assessment  procedure     a. Mid  term       b. End  tern       c. Teachers  Assessment     Module  1.  Concept  of  banking  and  financial  institute   1.1.  Banking  -­‐  Commercial     1.2.  Financial  Institutions   1.3.  The  difference  between  banking  and  financial  Institute  activities.   1.4  Universal  banking   1.5.  Banking  companies  in  India   Module  2.  Banks  and  Customers     2.1.  Customer:  meaning   2.2.  Legal  character  of  banker-­‐  customer  relationship   2.3.  Rights  and  obligations  of  banks   2.3.1.  Right  of  set-­‐off                                 30  marks   50  marks   20  marks  



4.  agents.   Need   for-­‐   elimination   of   systemic   risk.  Control  by  Government  and  its  agencies   3.5.  Nature  and  justification  of  the  duty   2.4.1.  Right  to  charge  interest  and  commission   2.1.  administrators   and  executors.1.3.1.  Joint  Accounts   2.1.  Evolution  of  Central  Banks   4.   avoidance   money   laundering.5.1.  The  Reserve  Bank  of  India  as  central  bank  in  India     2   .  Obligation  to  honour  customers'  cheques   2.2.3.   On  management   3.  Characteristics  and  functions  of  central  banks   4.2.  Duty  of  confidentiality   2.  minors.5.  Control  Banking  Theory  and  the  RBI     4.4.  Current  Accounts   2.  RBI   Module  4.   consumer   protection.4.1.  Deposit  Accounts  On  account  and  audit   3.1.  On  money  lending   3.  Control  over  Banks     3.3.  Reorganization  and  reconstruction   3.4.5.  Exceptions  to  the  duty   2.  On  suspension  and  winding  up   3.1.  Accounts  of  customers   2.3.3.   promotion   of   fair   competition.  Control  by  Ombudsman   3.2.  Special  types  of  customers:  Lunatics.  Central  bank  as  banker's  bank   4.  Banker's  lien   2.  Trust  Accounts   2.2.  Central  bank  as  banker  and  adviser  of  the  State   4.  partnership  firms  and  companies   Module  3.5.3.

2.5.1.  pledge   5.  Repayment   5.7.9  Control  over  Non-­‐banking  financial  institutions   4.1  Objectives  and  organizational  structure   4.  Principles  of  good  lending   5.4.  surety's  rights  and  liabilities.2.  kinds  of  guarantees:  specific  &  continuing  Default  and  Recovery     3   .2.2  Functions  charge   5.12  Control  and  supervision  of  other  banks   Module  5.7  Open  market  operations   4.   5.7.   4.  Securities  for  bank  advances   5.2.3  Regulations  of  the  monetary  system   4.5.5.  Interest:  Rule  against  penalties   5.  debentures  as  security  Determination  of  bank  rate  policy   4.5.10  Economic  and  statistical  research.  guarantees  as  security  Staff  training   4.  contract  of  guarantee  and  contract  of  indemnity   5.5.5.  mortgage   5.2.  life  insurance  policies  as  security   5.6.  Lending  by  Banks   5.3.8  Banker  to  government   4.2.4  Monopoly  of  note  issue   4.  goods  or  documents  of  title  to  goods   5.1.5  Credit  control

2  Model  of  Securitization   6.1.  Recovery  of  Debts  Due  to  Banks  and  Financial  Institutions   Act.  (1999)  Universal.   New  Delhi.  The  Negotiable  Instruments  Act  (1997)  Bharath  Law  House.  The  Banking  Law  in  Theory  and  Practice.L.  New  Delhi.  Debt  recovery  tribunals-­‐  constitution  and  functioning   Module  6.3  Insolvency  and  reconstruction  of  banking  company   7.  Banking  reforms  in  India   7.Gupta.5.1  Narasimham  committee  reports   7.  Sethi's  Commentaries  on  Banking  Regulation  Act  1949  and   Allied  Banking  Laws  (2000)  Law  Publishers.N.N.   S.   S.  Delhi.).   Bashyam  and  Adiga.4  Importance  and  impact  of  Securitization   Module  7.       4   .2  Bessel  II  and  financial  risk  management   7.2  E-­‐Banking  Frauds   Select  bibliography   Bear  Act:   Reserve  Bank  of  India  Act  1934   Banking  Regulation  Act  1949   Securitization  and  Reconstruction  of  Financial  Assets  and  Enforcement  of   Security  Interest  Act  2002   M.Tripathi  (Ed.  Allahabad.Tannen.S.N.4.1  Non-­‐performing  assets  and  Securitization   6.1  Money  Laundering   8.4.  Securitization  and  banking  issues   6.  Banks  and  the  Consumer  Protection  Law  (2000)  Universal.Gupta.  New  Delhi   G.    Banking  Fraud   8.2.4  Corporate  governance  and  banking  risk  management   Module  8.  (2000)  India  Law   House.3  Qualified  Institutional  Buyer   6.  Tannen's  Banking  Law  and  Practice  in  India.  1993   5.

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