Course Title: BANKING LAW L T P/ SW/F TOTAL

S W CREDI
Course Code: T
UNITS
2 1 - - 3
Credit Units: 3

Course Objective:

The objective of the course is to acquaint the students with the

law applicable and applied in banking industry and to provide
knowledge regarding banking business in India with respect to its
deposits, advances and other ancillary functions , besides, the
remedial measures thereto .

Pre-requisites:

The student should have understanding of day today Commerce and basic
knowledge of commercial and usual banking transactions with aptitude to
comprehend the various money/investment related activities carried by the banks.

Student Learning Outcome:

This course acquaints students with the banking system in India and acquaints
them about the various aspects of banking and the rights of their customers. After
undergoing the course the student will be having sufficient knowledge of law
related to banking and banking practices concerning deposits , advances etc .
Course Contents/Syllabus:

Module I: Banking System in India Weghtage (%)

Kinds of banks and their functions ; Banking Regulation Laws 20

:Reserve Bank of India Act, 1934, Banking Regulation Act, 1949 ;
Relationship between banker and customer : Legal Character,
Contract between banker & customer, Banks duty to customers ; The
Banking Ombudsman Scheme, 1995 ; Liability under Consumer
Protection Act, 1986.

30
Module II: Bank Deposits & Guarantees

Opening of Account & KYC norms, Payments in deceased Accounts,

Garnishee orders, Setoff and adjustments Promissory note, Bill of
Exchange and dishonor thereto with remedial measures , Bank
Guarantees and their kinds

Module III: Lending, Securities and Recovery by 30

Banks

Principles of Lending ; Position of Weaker Sections ; Nature of

Securities and Risks Involved ; Recovery of debts with and without
intervention of courts / tribunal: Recovery of Debts due to Banks and
Financial Institutions Act, 1993, Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interests Act, 2002.

Module IV: Banking 20

Frauds

Nature of Banking Frauds ; Legal Regime to Control Banking Frauds

; Recent Trends in Banking: Automatic Teller Machine and Internet
Banking, Smart Cards, Credit
Cards.

Pedagogy for Course Delivery:

 The course will be conducted using lectures, assignments. The students will be
acquainted with important case laws on the subject to understand the intricacies
involved in the banking transactions.

Lab/ Practical details, if applicable: NA

List of Experiments: NA

Assessment/ Examination Scheme:

Assessment/ Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%)

30% NA

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment

Components (Drop
down)
Mid-Term Project Viva Attendance
Exam

Weightage (%)

10% 10% 5%

Text and References:

Banking Law & Practice in India M.L. Tannan.
Banking Law & Negotiable Instruments Act Sharma and Nainta
Banking System, Frauds and Legal Control R.P. Namita
The Negotiable Instrument Act by J S Khergamwala