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 – Central Banking in India – Reserve Bank of India (RBI) – functions – Methods of credit control – traditional and promotional functions – 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
• CO4: To define and classify negotiable instruments, including promissory notes, bills of exchange, and checks, and explain their legal
• CO5: To understand the concept of electronic banking (e-banking) and its significance in modern financial

Text Books:

Sundaram & Varshney – Banking Theory, Law & Practice – Sultan Chand & Sons

Rajesh. R, Sivagannasithi. T – Banking Theory, Law & Practice – McGraw Hill Education

References:

Dr. P. Srivastava – Banking Theory & Practice – Himalaya Publishing House

K.C. Shekar, Lakshmi Shekar – Banking Theory & Practice – Vikas Publishing House