Course

Unit 1

Overview of Banking System – Origin and development of banks – Banking Regulations Act 1949 – Definition of Banking – Different Types of Banks in India – Commercial Banks – Co-Operative Banking System – National Bank for Agriculture and Rural Development (NABARD).

Unit 2

Central banking in India – Reserve Bank of India (RBI) – functions – Methods of credit control – traditional and promotional methods – RBI monetary policy – opening of new branches – new licensing policy.

Unit 3

Commercial Banks – Functions of Commercial Banks – Universal Banking – Management of Deposits and Advances – Classification and nature of Deposit accounts – Advances – Types of Advances – Lending practice – Principles of sound bank lending.

Unit 4

Negotiable Instruments – Definition – Features – Promissory Note – Bills of Exchange and Cheque – Holder and Holder in due course – Crossing of a Cheque – Types of Crossing – Endorsement – Negotiation and Dishonour – discharge of Negotiable Instrument – Protection of Collecting Banker and Paying Banker.

Unit 5

E-Banking – Meaning – benefits – electronic transfer – National Electronic Funds Transfer (NEFT) – Real Time Gross Settlement (RTGS) – Electronic Clearing System (ECS) – Indian Financial System Code (IFSC) – ATM – Debit card and Credit card – Mobile banking – WAP – Tele banking – Internet banking – Bank assurance – Banking ombudsman scheme – Demat account.

Course Objective:

To provide students with a comprehensive understanding of the concept of the Banking System.

Course Outcomes:

The student will be able:

CO1: To gain insight into the development of banks and different types of banks prevailing in India

CO2: To understand the concept of central banking and their roles in Indian economy

CO3: To understand the different functions of commercial banks.

CO4: To define and classify negotiable instruments, including promissory notes, bills of exchange, and checks, and explain their legal characteristics.

CO5: To understand the concept of electronic banking (e-banking) and its significance in modern financial services.

Textbooks:

1. Sundaram, Varshney – Banking Theory, Law and Practice – Sultan Chand and Sons
2. R, Sivagannasithi. T – Banking Theory, Law and Practice – McGraw Hill

References:

1. P. Srivastava – Banking Theory and Practice – Himalaya Publishing House
2. C. Shekar, Lakshmi Shekar – Banking Theory and Practice – Vikas Publishing House.