Law and Practice of Banking Syllabus

LAW AND PRACTICE OF BANKING NEP Syllabus – B-COM 2nd Semester – Bangalore City University

Module No. 1: Introduction to Banking

Introduction- Meaning – Need – Importance – Primary, Secondary & Modern

functions of banks – Origin of banking- Banker and Customer Relationship

(General and special relationship) – Origin and growth of commercial banks in India

– Types of Banks in India– Banks’ Lending – changing role of commercial banks.

RBI: History-Role & Functions.

Module No. 2: Paying and Collecting Banker

Paying banker: Introduction – Meaning – Role – Functions – Duties – Precautions

and Statutory Protection and rights – Dishonor of Cheques – Grounds of Dishonor –

Consequences of wrongful dishonor of Cheques; Collecting Banker: Introduction

– Meaning – Legal status of collecting banker – Holder for value -Holder in due

course – Duties & Responsibilities – Precautions and Statutory Protection to

Collecting Banker.

Module No. 3: Customers and Account Holders

Introduction – Types of Customers and Account Holders – Procedure and Practice in

opening and operating accounts of different customers: Minors – Joint Account

Holders- Partnership Firms – Joint Stock companies – Executors and Trustees –

Clubs and Associations and Joint Hindu Undivided Family.

Module No. 4: Negotiable Instruments

Introduction – Meaning & Definition – Features – Kinds of Negotiable Instruments:

Promissory Notes – Bills of Exchange – Cheques – Crossing of Cheques – Types of

Crossing; Endorsements: Introduction – Meaning – Essentials & Kinds of

Endorsement – Rules of endorsement.

Module No. 5: Recent Developments in Banking

Introduction – New technology in Banking – E-services – Debit and Credit cards –

Internet Banking-Electronic Fund Transfer- MICR – RTGS – NEFT –ECS- Small

banks-Payment banks- Digital Wallet-Crypto currency- KYC norms – Basel Norms

– Mobile banking-E-payments – E-money. Any other recent development in the

banking sector.

LAW AND PRACTICE OF BANKING Skill Development Activities:

1. Refer RBI website and identify the different types of banks operating in India.

2. Visit any Public sector bank & discuss with the branch manager about the role

and functions as a paying and collecting banker.

3. Collect and fill dummy account opening forms as different types of customer.

4. Draft specimen of Negotiable instruments: bill of exchange, Promissory

Notes and Cheques.

5. Identify and prepare report on pros and cons of recent development in the field

of banking sector.

6. Any other activities, which are relevant to the course.