SVKM’s Narsee Monjee Institute of Management Studies

Name of School – Kirit P. Mehta School of Law

Program: B.A., LL.B. (Hons.) 8101 & B.B.A., LL.B. (Hons.) 8102 Semester: VI
Module: Banking and Insurance Law Module Code:
Teaching Scheme Evaluation Scheme
Lecture Practical Tutorial Term End Examinations
Internal Continuous
(Hours (Hours (Hours (TEE)
Credit Assessment (ICA)
per per per week) (Marks- 50 in Question
(Marks - 50)
week) week) 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 2 Hrs
and 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
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
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law
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:
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.
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law
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
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, etc..
Reference Reading
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law
• 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
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
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law
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
• 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 60 Hrs
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law
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 Marks

Seminar 10 Marks
Viva 10 Marks
Class Participation 10 Marks
Total Marks : 50 Marks

Richa Kashyap

____________ _____________

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