Principles and Practices of Banking
Subject Overview
The first Banking and Insurance elective, covering banking structure, retail/wholesale/international banking, banker-customer relationships and negotiable instruments handling, asset-liability and risk management (Basel norms, NPAs, financial inclusion), and electronic banking and IT security. A 4-credit elective theory paper.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Banking structure and services
Commercial and co-operative bank structure, private/public/foreign banks, regional rural banks, retail/wholesale/international banking products, universal banking, CIBIL and fair practices code for debt collection
Unit 2: Banker-customer relationships
Debtor-creditor relationship, bank as trustee, anti-money laundering, deposit products, mandate/POA/garnishee orders/banker's lien/right of set-off, COPRA Act and Banking Ombudsman Scheme, payment and collection of cheques and negotiable instruments, opening and maintaining customer accounts, remittances and safe deposit lockers
Unit 3: Asset-liability and risk management
ALM significance, process and techniques, credit/operational/market/liquidity risk management, corporate treasury management, Basel norms and capital adequacy, documentation and modes of charging securities, NPA definition, classification, provisioning and recovery, investment management, financial inclusion and literacy
Unit 4: Electronic banking and technology
Electronic banking and payment systems, EFT systems and SWIFT, technology upgradation trends and impact on banks, security risk types and control mechanisms, IS audit, Gopalakrishna Committee recommendations, preventive vigilance against phishing