Banking Laws & Services
Subject Overview
Banking Laws & Services is the Banking & Insurance elective on the legal and regulatory side of banking — the laws that govern how banks actually operate. You'll cover the origin and structure of Indian banking, the regulatory and compliance framework (RBI Act 1934, Banking Regulation Act 1949), NPA and securitisation rules (SARFAESI Act) and the Basel framework, and close with banker-customer relationships and banking services like cheque payment/collection and security creation. This is a 6-credit elective paper across 4 units, building on Banking Services Management from Semester 5.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Origin & structure of Indian banking
Origin and evolution of Indian banking, types of banks — commercial, small finance, payments, cooperative, public sector, private sector, foreign banks and RRBs, role of RBI as regulator, changing functions of commercial banks
Unit 2: Regulatory & compliance framework
Reserve Bank of India Act 1934 — incorporation, central banking functions, provisions for non-banking institutions, penalties, credit control techniques, Banking Regulation Act 1949 — definitions, business of banking companies, winding up
Unit 3: NPAs, securitisation & the Basel framework
NPA categories and provisioning norms, SARFAESI Act, Bank for International Settlements and Basel Accords, banker-customer relationship types, lien, set-off and appropriation, Negotiable Instruments Act obligations
Unit 4: Banking services
Payment and collection of cheques, duties of paying and collecting bankers, legal protections under the Negotiable Instruments Act, security creation — pledge, hypothecation, mortgage, assignment, fund-based and non-fund-based services, financial inclusion