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Name of the Program: Bachelor of Commerce (B.Com.)
Course Code: B.Com. 2.3
Name of the Course: Law and Practice of Banking
Course Credits No. of Hours per Week Total No. of Teaching Hours
4 Credits 4 Hrs 48 Hrs
Pedagogy: Classrooms lecture, Case studies, Group discussion, Seminar & field work etc.,
Course Outcomes: On successful completion of the course, the Students will be able to
a) Summarize the relationship between Banker & customer and different types of
functions of banker.
b) Analyse the role, functions and duties of paying and collecting banker.
c) Make use of the procedure involved in opening and operating different accounts.
d) Examine the different types of negotiable instrument & their relevance in the present
context.
e) Estimate possible developments in the banking sector in the upcoming days.
Syllabus: Hours
Module No. 1: Introduction to Banking 10
Introduction- Meaning – Need – Importance – Primary, Secondary & Modern functions of
banks - Origin of banking- Banker and Customer Relationship (General and special
relationship) - Origin and growth of commercial banks in India – Types of Banks in India–
Banks’ Lending - changing role of commercial banks. RBI: History-Role & Functions.
Module No. 2: Paying and Collecting Banker 10
Paying banker: Introduction - Meaning – Role – Functions - Duties - Precautions and
Statutory Protection and rights - Dishonor of Cheques – Grounds of Dishonor –
Consequences of wrongful dishonor of Cheques; Collecting Banker: Introduction - Meaning
– Legal status of collecting banker - Holder for value -Holder in due course – Duties &
Responsibilities - Precautions and Statutory Protection to Collecting Banker.
Module No. 3: Customers and Account Holders 10
Introduction - Types of Customers and Account Holders - Procedure and Practice in opening
and operating accounts of different customers: Minors - Joint Account Holders- Partnership
Firms - Joint Stock companies - Executors and Trustees - Clubs and Associations and Joint
Hindu Undivided Family.
Module No. 4: Negotiable Instruments 10
Introduction – Meaning & Definition – Features – Kinds of Negotiable Instruments:
Promissory Notes - Bills of Exchange - Cheques - Crossing of Cheques – Types of Crossing;
Endorsements: Introduction - Meaning - Essentials & Kinds of Endorsement – Rules of
endorsement.
Module No. 5: Recent Developments in Banking 08
Introduction - New technology in Banking – E-services – Debit and Credit cards - Internet
Banking-Electronic Fund Transfer- MICR – RTGS - NEFT –ECS- Small banks-Payment banks-
Digital Wallet-Crypto currency- KYC norms – Basel Norms - Mobile banking-E-payments - E-
money. Any other recent development in the banking sector.
Skill Development Activities:
1. Refer RBI website and identify the different types of banks operating in India.
2. Visit any Public sector bank & discuss with the branch manager about the role and
functions as a paying and collecting banker.
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3. Collect and fill dummy account opening forms as different types of customer.
4. Draft specimen of Negotiable instruments: bill of exchange, Promissory Notes and
Cheques.
5. Identify and prepare report on pros and cons of recent development in the field of
banking sector.
6. Any other activities, which are relevant to the course.
Text Books:
1. Gordon & Natarajan, Banking Theory Law and Practice, HPH, 24th Edition
2. S. P Srivastava ( 2016), Banking Theory & Practice, Anmol Publications
3. Maheshwari. S.N. (2014), Banking Law and Practice, Kalyani Publishers, 11 edition
4. Shekar. K.C (2013), Banking Theory Law and Practice, Vikas Publication, 21st Edition.
5. Dr. Alice Mani (2015), Banking Law and Operation, SBH.
Note: Latest edition of text books may be used.
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