SVKM’s Narsee Monjee Institute of Management Studies

Name of School – Kirit P. Mehta School of Law

Program: B.A., LL.B (Hons.) & B.B.A., LL.B (Hons.) Semester VI

Module: Banking and Insurance Laws Module Code:

Teaching Scheme Evaluation Scheme

Lecture Practical Tutorial Term End
Internal Continuous
(Hours (Hours (Hours Examinations (TEE)
Credit Assessment (ICA)
per per per week) (Marks- 50
(Marks - 50)
week) week) in Question Paper)
4 0 0 4 Marks Scaled to 50 Marks Scaled to 50
Pre-requisite: Company Law, Contract Act, General Management
Course Objective:

1. Understanding Banking Regulations, Emerging Issues in the sector and various other
compliance mechanisms related to Banking laws.

2. Understanding the role of regulator in effective governance of banking and insurance sector.

Course Outcomes:
1. To develop understanding and acquire application-oriented knowledge for Rules,
Notifications and Circulars issued by Regulators from time to time to take care of
contemporary and relevant issues (PLO2a)

2. Undertake empirical research by using different statistical data available through Banks,
NBFC’, financial institutions and the regulator to determine the financial stability and
suggest effective solutions & recommendations (PLO2b)

3. To enable the students to apply relevant provisions and judicial decisions in

understanding the nature of insurance contract, various policies and rules with to respect
Life Insurance and General Insurances, Risk Management and the concept of Re-Insurance
(PLO1a)

4. To Identify the concerns and consequences of unethical practices by key players in

implementing effective governance in banking & insurance sector in India (PLO4b)

Detailed Syllabus: (per session plan)

Unit Description: Duration
1. Introduction to the different Payment Methods used in Banking System and 2 Hrs.
mode of transactions-
Topic Details:
To Introduce the students with the various types of Payment System and
Instruments both Traditional and Digital Methods.
Reference Reading
• http://www.rbf.gov.fj/docs2/Payment%20Systems.pdf
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

Pedagogy: Discussion Method

2. Negotiable Instruments Act 1881 – Promissory Notes, Bills of Exchange & 3 Hrs.
Cheque
Topic Details:
How to Negotiate Instruments, Concept of Transferability & Holder in Due
Course
Section 4, Section 5, Section 6, Section 9, Section 118 of the Negotiable
Instruments Act
Basic Reading
• Banking and Negotiable Instruments Act by R.N Chaudhary, Central
Law Publication :Pg.- 530
Pedagogy: Socratic Method
3. Understanding Cheques 3 Hrs.
Topic Details:
Discussing General Crossing, Special Crossing and the importance of Non-
Negotiable Crossing.
Section 123, 124 and 130
Basic Reading:
Banking and Negotiable Instruments Act by Avtar Singh :Pg.- 360-375;
Reference Reading
• https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8704&Mod
e=0
Pedagogy: Socratic Method
4. Dishonour of Cheques and Legal Procedure 3 Hrs.
Topic Details:
The lecture will also focus on the timeline and manner of filing a suit for
Dishonour of cheque under section 138 read with section 142 explaining it
through various case laws. Recent Amendments discussing the rights of Payee.

Section 138, Section 142, Section 143 -A and Section 148 of the Negotiable
Instruments Act
Case: Modi Cement vs Kuchil Kumar Nandi,SampellySatyanarayan Rao v.
Indian Renewable Development Agency, K. Bhaskaran vs Sankaran,
Dashrath Roop Singh Rathore v. State of Maharashtra
Basic Reading:
Banking and Negotiable Instruments Act by Avtar Singh :Pg.- 360-375;
Reference Reading
• https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8704&Mod
e=0
Pedagogy: Socratic Method

5. Legal Aspects of Banking Operations 3 Hrs.

Topic Details:
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

Obligations of a Banker - Precautions and Rights. Mode of charging securities

Banker’s Lien, Bank Guarantee, Letter of Credit and Letter of Understanding.
Section 171, 174 and 126 of the Indian Contract Act.
Case: City Union Bank v C. Thangarajan, Stephen v. Chandra Mohan
Reference Reading
• Understanding with the help of various cases and agreements. Escrow
Agreement, Bank Guarantee Agreement.
Pedagogy: Socratic Method
6. Role of RBI as the Central Bank 3 Hrs.
Topic Details:
Understanding the need for having a Central Bank and its Powers in
controlling the Public sector and Private Sector Banks.
RBI Act 1934 – Section 7, Section 9
Case: Dharani Sugars v UOI, Power Association of India v. UOI
Pedagogy: Discussion Method
7. Role of RBI in Corporate Governance 3 Hrs.
Topic Details:
The mechanism for corporate governance in the Banking sector, the recent
issues of ever greening of accounts and banking frauds.
CAMELS System, Basel Norms and Surveillance Methods, SWIFT.
Reference Reading
Discussion on recent cases:
a. IL&FS
b. PMC Bank case
c. ICICI RPT case
d. PNB Fraud case
e. DHFL Fraud case
Pedagogy: Socratic Method
8. Banking Regulation Act 1949 3 Hrs.
Topic Details:
Forms of Business which can be undertaken by a Banking Company- Section 6
Restrictions on the activities of a Banking Company- Section `8 & Section 9
Conditions for Licensing of Banking Companies- Section 22
Restrictions on Loans and Advances- Section 20
Basic Reading
• Banking and Negotiable Instruments Act by Avtar Singh Pg- 23-58
Pedagogy: Discussion Method
9. Non – Banking Financial Companies 2 Hrs.
Topic Details:
Important regulations relating to acceptance of deposits by NBFCs
Reference Reading
• https://www.rbi.org.in/Scripts/BS_ViewNBFCNotification.aspx
• https://pib.gov.in/newsite/PrintRelease.aspx?relid=192130
Pedagogy: Discussion Method
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

10. Bankers Book of Evidence Act 1881 3 Hrs.

Topic Details:
Special Legislation for relevance and admissibility of bank records
Basic Reading -
Section 2, 2A, 4, 6 of Bankers book of evidence act 1881
Case:ICICI Bank v. Kapil Dev Sharma
Pedagogy: Discussion Method
11. Emerging Area’s in Banking 3 Hrs.
Topic Details:
Discussion on Contemporary developments in the Banking Sector
Payment Banks in India, Digital Wallets.
Reference Reading
• https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/86706.pdf
Pedagogy: Discussion Method
12. Concept of Insurance 3 Hrs.
Topic Details:
Introduction to the nature of Insurance Contract
Basic Reading
• Modern Law of Insurance in India- Dr. KVS Sharma & KSN Murthy,
Lexis Nexis Pg- 3-10
Pedagogy: Discussion Method
13. Principles of Insurance 3 Hrs
Topic Details: Principle of Utmost Good Faith, Principle of Insurable Interest,
Principle of Indemnity, Principle of Subrogation, Principle of Contribution,
Principle of Causa Proxima & Principle of Loss Minimization
Basic Reading
• Modern Law of Insurance in India- Dr. KVS Sharma & KSN Murthy,
Lexis Nexis Pg- 3-10
Pedagogy: Discussion Method

14. Risk Management in Insurance 3 Hrs.

Topic Details:
Concept of Risk & Risk Identification and Management, Risk Analysis, Scope
of Risk, Alteration of Risk.
Pedagogy: Discussion Method
Basic Reading
• Modern Law of Insurance in India- Dr. KVS Sharma & KSN Murthy,
Lexis Nexis Pg- 67-76
Pedagogy: Socratic Method
15. Life Insurance 3 Hrs.
Topic Details:
Type of Life Insurance- Pure Life Insurance cum Investment Plans, ULIP
Insurable Interest in Life Insurance, Nomination & Assignment, Suicide Clause
and Felo de se
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

Section 45, 38, 39 of the Insurance Act 1938

Basic Reading
• Modern Law of Insurance in India- Dr. KVS Sharma & KSN Murthy,
Lexis Nexis Pg- 107-190
Pedagogy: Discussion Method
16. Marine Insurance 3 Hrs.
Topic Details:
Types of Marine Insurance, Marine Adventure- Inclusions and Exclusions,
Types of Policies, Concept of Loss in Marine Insurance.
Basic Reading
• Law of Insurance by – Avtar Singh: Pg 241
Pedagogy: Discussion Method
17. Fire Insurance and Motor Vehicle Insurance 3 Hrs.
Topic Details:
Standard Fire and Special Perils Policy, Third Party Motor Vehicle,
Comprehensive Policy, Own Damage, No claim bonus.
Reference Reading
• https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/126.%20
Standard%20Fire%20and%20Special%20Perils.pdf
Pedagogy: Discussion Method
18. Professional Liability Insurance 3 Hrs.
Topic Details:
Employer’s Liability, Personal Loss, Financial Loss
Reference Reading
• Professional Indemnity Policy Guidelines-IRDA
Pedagogy: Discussion Method
19. Health Insurance and other emerging general insurances 2 Hrs.
Topic Details:
Understanding Health Insurance with the help of various Policies.
Reference Reading
• https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/Guideli
nes%20on%20Standardization%20in%20Health%20Insurance%202016.
pdf
Pedagogy: Discussion Method
20. IRDA Guidelines 2 Hrs.
Topic Details:
Role of IRDA as regulator for Insurance Companies in India
Reference Reading
• https://www.irdai.gov.in/ADMINCMS/cms/frmwhats_List.aspx
Pedagogy: Discussion Method
21. Concept of Re-Insurance 2 Hrs.
Rules regarding Re-Insurance
Reference Reading
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

• https://www.pwc.in/assets/pdfs/news-
alert/2018/pwc_news_alert_9_january_2018_irdai_issues_draft_irdai_
reinsurance_regulations_2018.pdf
Pedagogy: Discussion Method
22. Insurance and Consumer Protection 2 Hrs.
Topic Details:
The rights of Insured as a Consumer
Basic Reading
• Modern Law of Insurance in India- Dr. KVS Sharma & KSN Murthy,
Lexis Nexis Pg.- 45-56
Pedagogy: Discussion Method
Total 60Hrs.

Text Books:

1. Tannans Banking Law and Practice in India, Lexis Nexis, 2017 Edition
2. Modern Law of Insurance in India by K.S.N.Murthy & Dr. K.V.S.Sarma, January 2019.

Reference Books:

1. Banking and Negotiable Instruments by Avtar Singh, EBC Publications 2021

2. Law of Insurance by Avtar Singh, EBC Publications 2018

Any other information:

Total Marks of Internal Continuous Assessment (ICA): 50 Marks

Distribution of ICA Marks:

Description of ICA Marks

Research Paper 20
Viva on Research Paper 10
Assignment 20
Total Marks: 50

Richa Kashyap_________
Signature Signature
(Prepared byFaculty Prof. Richa Kashyap) (Approved by Dean)