Banking Laws
Subject Overview
The third Banking and Insurance elective, covering the statutory framework of Indian banking — the Banking Regulation Act 1949, the Negotiable Instruments Act 1881, the RBI Act 1934, and recovery/securitization laws including the SARFAESI Act 2002 and the Banking Ombudsman scheme. A 4-credit elective theory paper.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Banking Regulation Act, 1949
Concept of bank and banker, functions and classification of banks, bank-customer relationship, government control, management of banking companies, reconstruction and reorganization, suspension and winding up, social control over banking
Unit 2: The Negotiable Instruments Act, 1881
Definition and characteristics of negotiable instruments, types, promissory notes/bills of exchange/cheques, liabilities and capacity of parties, holder in due course, transfer and negotiation, crossing and payment, dishonor, noting and protest, endorsement rules
Unit 3: The Reserve Bank of India Act, 1934
Incorporation, capital, management and business of banking companies, RBI's central banking functions, collection of credit information, RBI's control over non-banking and financial institutions, credit control, RBI's changing role
Unit 4: Recovery and securitization law
Law of Limitation, Bankers' Books Evidence Act, Recovery of Debts Due to Banks and Financial Institutions Act 1993, TDS/banking cash transaction tax, SARFAESI Act 2002, asset reconstruction companies, Banking Ombudsman, Lok Adalats, Lender's Liability Act