Symbiosis Law School, Pune

SESSION PLAN
Academic Year 2017 -18 4th Year BABBALLB

NAME OF THE COURSE: BANKING LAWS

FACULTY MEMBER: Adv. M. G. Bapat

CONTACT DETAILS OF FACULTY MEMBER: 09423003834

CREDITS: 4

TOTAL NUMBER OF MODULES: 12

INTERNAL/EXTERNAL EVALUATION (Components incl. One Project mandatory):

1) Internal Evaluation- 40 Marks

2) External Evaluation- 60 Marks

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INTRODUCTION TO THE COURSE: In the light of globalization, India needs to reform its financial sector.
These reforms are incomplete without the reforms in the banking sector. The Government has taken a
number of steps to improve the banking sector.

OBJECTIVES OF THIS COURSE: In order to know the implementation of Banking Laws, this subject is
included in the syllabus. The objective is to learn the practical aspects of the implementation and
interpretation of Laws relating to Recovery of Debts due to Banks and Financial Institutions, Enforcement
of Security Interest, and The procedure of filing a complaint for cheques returned unpaid under the
provisions of the Negotiable Instruments Act. In addition, the regulatory aspects of banks by The Reserve
Bank of India shall be studied.

CLASS SCHEDULE: Thursday: 1 p.m. to 2p. m., Friday: 1 p. m. to 2p. m., Saturday: 11a.m. to 1 p.m.

SKILLS EXPECTED TO BE IMPARTED: Implementation and interpretation of Laws with the help of decided
cases and drafting of notices, application and complaint.

EXPECTATIONS FROM THE STUDENT: The students are expected to be proactive are desire to learn the
practical aspects.

TEACHING AND LEARNING METHODS: Lectures and practicals.

ASSESSMENT PLAN (One Project Mandatory): Tutorial, Assignment and case study

RESOURCE TOOLS: Notes, Reference to Books, Decided Cases.

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COURSE OUTLINE:

Sr. No. Topic Session

Number
1 Introduction to Banking 2
2 Reserve Bank of India act, 1934 4
3 Banking Regulation Act, 1949 7
4 Basel Accord 2
5 Negotiable Instruments Act, 1881 7
6 Banker Customer Relationship 3
7 Recovery of Debts due to Banks and Financial Institutions Act, 1993 7
8 Bankers’ Books Evidence Act, 1891 1
9 Sarfaesi Act, 2002 7
10 Foreign Exchange Management Act, 1999 4
11 Prevention of Money Laundering Act, 2009 1
12 Banking Ombudsman Scheme 1

DETAILED SESSION PLAN

Session Topic to be covered/Session Mapping References with page number

Number Compulsory and Suggested
references must match with
reading materials supplied.

Session 1 First Quarter (Recap & Evolution of Banking Notes given in the class
Co-relation) system in India
Second Quarter Banking System in Banking Law and Practice by P.
(Subject) India N. Varshney, Published by Sultan
Third Quarter(Cases) Different types of Chand & Sons.
Banks Pages 1.3 to 1.26 for the entire
Fourth Quarter Above topic continued. session
(Interaction, Recap,
Next Session,
Conclusion)
Session 2 First Quarter (Recap & Investment Pages 1.3 to 1.26 covers the
Co-relation) Institutions, DICGC, entire two sessions.
ECGC
Second Quarter Land Development
(Subject) Banks

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 Third Quarter(Cases) Industrial Development
Banks
Fourth Quarter Industrial
(Interaction, Recap, Reconstruction Bank Of
Next Session, India
Conclusion)
Session 3 First Quarter (Recap & Reserve Bank of India , Bare Act, S. 3 to 8
Co-relation) Establishment,Capital
management,
Composition of Board
of Directors
Second Quarter Local Boards, Sec. 9 to 13
(Subject) functions,
Disqualification of
Directors, Removal.
Third Quarter(Cases) Permissible business of Sec. 17
the bank
Fourth Quarter Business continued. Sec.17 continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 4 First Quarter (Recap & Business continued Sec. 17 continued.
Co-relation)
Second Quarter Business continued Sec.17 continued.
(Subject)
Third Quarter(Cases) Business not allowed Sec.19
to be transacted
Fourth Quarter Obligation to transact Sec. 20,21
(Interaction, Recap, Govt business, of states
Next Session,
Conclusion)
Session 5 First Quarter (Recap & Right to issue bank Sec. 22 to 29
Co-relation) notes, issue
department
Second Quarter Assets, liabilities, cash Sec. 33 to 42
(Subject) reserve ratio
Third Quarter(Cases) Collection and Sec. 45A to 45 G
furnishing of credit
information
Fourth Quarter Non Banking Financial Sec. 45H to 45 QB
(Interaction, Recap, institutions
Next Session,
Conclusion)
Session 6 First Quarter (Recap & Non Banking Financial Sec. 45H to 45 QB continued
Co-relation) Institutions continued
Second Quarter Non Banking Financial
(Subject) Institutions continued

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 Third Quarter(Cases) Prohibition of Sec.45 R to 45 T
acceptance of deposits
by unincorporated
bodies
Fourth Quarter General Provisions, Sec. 46 to 58A
(Interaction, Recap, Penalties Sec. 58B to 58 G
Next Session,
Conclusion)
Session 7 First Quarter (Recap & Banking Regulation Bare Act of Banking Regulation
Co-relation) Act, Introduction Act, 1949
Second Quarter Definitions Sec. 1 to 5
(Subject)
Third Quarter(Cases) Definitions continued Sec.1 to 5 continued
Fourth Quarter Definitions continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 8 First Quarter (Recap & Business of banking Sec.6
Co-relation) companies
Second Quarter Business continued
(Subject)
Third Quarter(Cases) Business continued Sec.6 continued
Fourth Quarter Business continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 9 First Quarter (Recap & Use of word bank, Sec. 7 to 10
Co-relation) banker, banking and
management of banks
Second Quarter Above topic continued
(Subject)
Third Quarter(Cases) Composition of board Sec.10A
of directors
Fourth Quarter Ratio of paid up Sec. 11 to 22
(Interaction, Recap, capital, subscribed and
Next Session, authorized capital,
Conclusion) Restriction on holding
shares, licence..
Session 10 First Quarter (Recap & Restriction on loans Sec 20
Co-relation) and advances.
Second Quarter Holding liquid assets, Sec 24
(Subject) default
Third Quarter(Cases) RBI’s power to control Sec 21
advances

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 Fourth Quarter Monthly returns , Sec 27,28
(Interaction, Recap, unclaimed deposits
Next Session,
Conclusion)
Session 11 First Quarter (Recap & Accounts, balance Sec. 29,30 to 33
Co-relation) sheet and audit
Second Quarter Inspection Sec. 35
(Subject)
Third Quarter(Cases) Power of central govt. Sec. 36 AE to 36 AJ
to acquire banking
company
Fourth Quarter Continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 12 First Quarter (Recap & Winding up Sec. 38 to 44
Co-relation)
Second Quarter Continued
(Subject)
Third Quarter(Cases) Amalgamation of Sec. 44A
banking companies
Fourth Quarter Penalties Sec 46
(Interaction, Recap,
Next Session,
Conclusion)
Session 13 First Quarter (Recap & Banking Regulation Act Sec.56
Co-relation) as applicable to
Cooperative Banks
Second Quarter Continued
(Subject)
Third Quarter(Cases) continued
Fourth Quarter continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 14 First Quarter (Recap & Basel Accord, historical Notes in class,
Co-relation) aspect
Second Quarter The need to have
(Subject) regulation
Third Quarter(Cases) Basel accord one
Fourth Quarter India’s position as
(Interaction, Recap, signatory to accord
Next Session,
Conclusion)
Session 15 First Quarter (Recap & Basel accord Two
Co-relation)

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 Second Quarter Reasons for it and Reference to articles from
(Subject) implications journal of company secretaries
Third Quarter(Cases) Basel accord three and notes.
Fourth Quarter Criticism on the accord
(Interaction, Recap, and its rules
Next Session,
Conclusion)
Session 16 First Quarter (Recap & Negotiable Instruments Banking Law and Practice, by P.
Co-relation) Act, 1881, Definition N. Varshney, published by Sultan
Second Quarter Holder and holder in Chand and Sons. Pages 3.3 and
(Subject) due course 3.4
Third Quarter(Cases) Payment in due course Page 3.14
Fourth Quarter Holder for value Page 3.19
(Interaction, Recap, Page 3.21
Next Session,
Conclusion)
Session 17 First Quarter (Recap & Definition Page 3.23, 3.24
Co-relation) , meaning, legal
provision of
endorsements
Second Quarter General rules regarding Page 3.26
(Subject) endorsements
Third Quarter(Cases) Regular forms of Page 3.27
endorsements Page 3.29
Fourth Quarter Kinds of Endorsements
(Interaction, Recap,
Next Session,
Conclusion)
Session 18 First Quarter (Recap & Types of crossing Page 3.34
Co-relation)
Second Quarter Liability of paying Page 3.37
(Subject) banker on crossed
chqs.
Third Quarter(Cases) Not negotiable crossing Page 3.38
Fourth Quarter Oblitering and opening Page 3.41
(Interaction, Recap, of crossing
Next Session,
Conclusion)
Session 19 First Quarter (Recap & Precaution to be taken Page 3.43 to 3.51
Co-relation) by Paying Banker while
paying a cheque
Second Quarter Statutory protection to Page 3,54
(Subject) paying banker
Third Quarter(Cases) When to refuse Page 3.59
payment

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 Fourth Quarter Suitable replies for Page 3.65
(Interaction, Recap, dishonour
Next Session,
Conclusion)
Session 20 First Quarter (Recap & Collection of cheques, Page 3.83, 3.84
Co-relation) as holder for value and
conversion
Second Quarter Statutory protection to Page 3.85
(Subject) collecting banker
Third Quarter(Cases) Liability of collecting Page 3.86
banker
Fourth Quarter Duties of collecting Page 3.93
(Interaction, Recap, banker
Next Session,
Conclusion)
Session 21 First Quarter (Recap & Kinds of bills of Page 3.103
Co-relation) exchanges
Second Quarter Presentment and P.3.109
(Subject) acceptance
Third Quarter(Cases) Dishonour of P. 3.113
Negotiable instruments
Fourth Quarter Drawee in case of need P. 3.118,3.119
(Interaction, Recap, and for honour
Next Session,
Conclusion)
Session 22 First Quarter (Recap & Rights and liabilities of P. 3.124, 3.125
Co-relation) parties
Second Quarter Liability of maker and P. 3.131, 3.133
(Subject) endorser
Third Quarter(Cases) N.I.instruments P. 3.137
without consideration
Fourth Quarter Instruments obtained P. 3.145
(Interaction, Recap, by unlawful means
Next Session,
Conclusion)
Session 23 First Quarter (Recap & Banker customer Banking Law and Practice by P.
Co-relation) relationship, N. varshney
Definitions P. 2.9
Second Quarter General Relationship P. 2.10
(Subject)
Third Quarter(Cases) Obligations P. 2.14
Fourth Quarter Garnishee order P. 2.17
(Interaction, Recap,
Next Session,
Conclusion)
Session 24 First Quarter (Recap & Different types of P. 2.48 to 2.64
Co-relation) deposit accounts

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 Second Quarter Continued
(Subject)
Third Quarter(Cases) Legal aspects of entries P. 2.71
Fourth Quarter Classification, P. 2.82, 2.84
(Interaction, Recap, nomination
Next Session,
Conclusion)
Session 25 First Quarter (Recap & Special types of P. 2.93, 2.97
Co-relation) customers, Minors,
married women
Second Quarter Illiterate persons, P.2.98, 2.99
(Subject) lunatics, Trustees
Third Quarter(Cases) Executors and P.2.99
administrators
Fourth Quarter Companies, P. 2.108, 2.123
(Interaction, Recap, Partnership firm,
Next Session, societies etc.
Conclusion)
Session 26 First Quarter (Recap & R.D.D.Act, 1993, Tiwari Securitization and Debt
Co-relation) committee report with Recovery Laws by SRIVASTAVA
reasons and historical Law Publisher’s I Pvt. Ltd.
aspects Preamble
Second Quarter Continued P.1 to 88
(Subject)
Third Quarter(Cases) Continued
Fourth Quarter Continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 27 First Quarter (Recap & Salient Features P.89
Co-relation)
Second Quarter Scheme of Act P.90
(Subject)
Third Quarter(Cases) Application of the Act P. 92
Fourth Quarter Rules under the Act P. 95
(Interaction, Recap,
Next Session,
Conclusion)
Session 28 First Quarter (Recap & Definitions P. 95, 96
Co-relation)
Second Quarter Continued
(Subject)
Third Quarter(Cases) Continued
Fourth Quarter Continued P.97 to 112
(Interaction, Recap,
Next Session,
Conclusion)

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Session 29 First Quarter (Recap & Establishment of P. 113
Co-relation) Tribunal and Appellate
Tribunal
Second Quarter Qualifications, P. 115,116
(Subject) Composition, Term of
office
Third Quarter(Cases) Composition of P. 117
Appellate Tribunal
Fourth Quarter Resignation and P.120
(Interaction, Recap, Removal
Next Session,
Conclusion)
Session 30 First Quarter (Recap & Jurisdiction, Powers P. 145 to 180
Co-relation) and Authorities, Sec.
17
Second Quarter Continued
(Subject)
Third Quarter(Cases) Continued
Fourth Quarter Continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 31 First Quarter (Recap & Procedure of Tribunals, P. 181 to 216
Co-relation) S. 19
Second Quarter Continued
(Subject)
Third Quarter(Cases) Continued
Fourth Quarter Continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 32 First Quarter (Recap & S.20, Appeal P. 217 to 227
Co-relation)
Second Quarter Deposit of amount P. 228
(Subject)
Third Quarter(Cases) Powers of Tribunal and P. 231
Appellate Tribunal
Fourth Quarter Transfer of Pending P.552
(Interaction, Recap, Cases, S.31
Next Session,
Conclusion)
Session 33 First Quarter (Recap & Importance of Bankers’ Bare Act
Co-relation) Books Evidence Act S.2
Second Quarter Definitions S.2,3,4
(Subject)
Third Quarter(Cases) Issue of Certificate S.7,8

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 Fourth Quarter Powers Of Courts and S.11
(Interaction, Recap, Police
Next Session,
Conclusion)
Session 34 First Quarter (Recap & Historical Background Law and Practice to
Co-relation) Of Sarfaesi Act Securitization by M. R. Umarji,
Second Quarter Concept of Published by Taxman
(Subject) Securitization P. 1 to 16
Third Quarter(Cases) Concept of Asset
Reconstruction
Fourth Quarter Concept of
(Interaction, Recap, Enforcement of
Next Session, Security Interest
Conclusion)
Session 35 First Quarter (Recap & Definitions, P. 42 to 90
Co-relation)
Second Quarter Continued
(Subject)
Third Quarter(Cases) Continued
Fourth Quarter Continued
(Interaction, Recap,
Next Session,
Conclusion))
Session 36 First Quarter (Recap & Continued P. 91 to 129
Co-relation)
Second Quarter Continued
(Subject)
Third Quarter(Cases) Continued
Fourth Quarter Continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 37 First Quarter (Recap & Registration of S.C. and P. 129 to 138
Co-relation) R. C., Sec. 3
Second Quarter Cancellation P. 140,141
(Subject)
Third Quarter(Cases) Acquisition of rights in P.143 to 148
financial assets
Fourth Quarter Continued
(Interaction, Recap,
Next Session,
Conclusion)
Session 38 First Quarter (Recap & Notice to obligor, S.6 P.166
Co-relation)
Second Quarter S.7 Issue of Security P. 168
(Subject) Receipt

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 Third Quarter(Cases) S.9 Measures of Assets P. 173
Reconstruction
Fourth Quarter S.10 Other functions P.184
(Interaction, Recap,
Next Session,
Conclusion)
Session 39 First Quarter (Recap & S.13,14 Enforcement of P.192 to 236
Co-relation) Security interest
Second Quarter Continued
(Subject)
Third Quarter(Cases) S.15,16 Manner and P.238
effect of takeover of
management
Fourth Quarter S.17,18 Right to Appeal P.242
(Interaction, Recap,
Next Session,
Conclusion)
Session 40 First Quarter (Recap & S.20,21Central Registry P.254
Co-relation)
Second Quarter S.22,23,24 Record, P. 258 to 260
(Subject) Modification of
Transactions
Third Quarter(Cases) S.27,28 Offences, P.265
Penalties
Fourth Quarter S.31, Non application P.267
(Interaction, Recap, of the Act
Next Session,
Conclusion)
Session 41 First Quarter (Recap & Object and reasons of Notes
Co-relation) Foreign Exchange
Management Act,
1999.
Second Quarter Comparison of FERA Notes
(Subject) with FEMA
Third Quarter(Cases) S.S.Tarapore Notes
Committee Report
Fourth Quarter S.2 Definitions Bare Act
(Interaction, Recap, S.2
Next Session,
Conclusion)
Session 42 First Quarter (Recap & Continued
Co-relation)
Second Quarter Continued
(Subject)
Third Quarter(Cases) S.3 Dealing in Fgn. Bare Act, S.3
Exchange

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 Fourth Quarter S.4 Holding in Foreign S.4
(Interaction, Recap, Exchange
Next Session,
Conclusion)
Session 43 First Quarter (Recap & S.5 Current Account S.5
Co-relation) Transactions
Second Quarter S.6 Capital Account S.6
(Subject) Transactions
Third Quarter(Cases) S.7 Export of Goods S.7
and Services, S.8
Fourth Quarter Realisation and S.8
(Interaction, Recap, Repatriation of Fgn.
Next Session, Exchange
Conclusion)
Session 44 First Quarter (Recap & Adjudication and S.16 to 37
Co-relation) Apopeal, Entire
Procedue
Second Quarter Continued
(Subject)
Third Quarter(Cases) Liabilities on Banks in Bare Act.
Prevention of Money
Laundering Act, 2002.
Fourth Quarter S.12 to 17, About
(Interaction, Recap, liabilities
Next Session,
Conclusion)
Session 45 First Quarter (Recap & Banking Ombudsman Notes
Co-relation) Schene
Second Quarter Appointment, Powers,
(Subject) Jurisdiction of
Ombudsman
Third Quarter(Cases) Procedure and reasons
of preferring
application
Fourth Quarter Appeal and award
(Interaction, Recap,
Next Session,
Conclusion)
Session 46 Drafting of notice u/s Contents of notice shall From Drafts
138 of N. I. Act be taught
Session 47 Drafting of complaint Contents of complaint From drafts
u/s 138 shall be taught
Session 48 Filing of complaint and Procedure shall be From experience
discussion on reasons discussed
of return of cheque
Session 40 to Presentations on Problems will be given From decided cases.
60 matters based on

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 decided cases to study
application of laws of
Securitization, Debt
Recovery and Cheque
Return Complaints,
explaining practical
aspects.

Detailed Assessment Plan:

Sr. Mode of Assessment Proposed Date of Proposed Date of Marks Proposed

No. Announcement Assessment Date of
Declaration
of Marks
1 Tutorial 3.8.17 10.8.17 20 17.8.17
2 Presentation 31.8.17 7.9.17 onwards 20 21.9.17
3 Test 28.9.17 7.10.17 20 14.10.17

Activities Plan:

Sr. No. Activity Division Proposed Date Pre-session

/session Readings
1 Drafting of notice under S. 138A Combined 14.9.17
of N.I.Act, 1881 B
C
D
2 Drafting of Complaint under S. A Combined 15.9.17
138 of N.I.Act,1881 B
C
D
3 Filing of Complaint and A Combined 16.9.17
discussion on reasons of B
return of cheques. C
D
4 A
B
C
D
5 A
B
C
D

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6 A
B
C
D
7 A
B
C
D
8 A
B
C
D
9 A
B
C
D
10 A
B
C
D
11 A
B
C
D
12 A
B
C
D
13 A
B
C
D
14 A
B
C
D
15 A
B
C
D

Name and Signature of Faculty

Adv. M. G. Bapat

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