BANKING REGULATIONS &OPERATIONS

FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

4.6 BANKING REGULATIONS &OPERATIONS

OBJECTIVE
The objective is to familiarize the students to understand the law and practice of banking.
Unit 1: COMMERCIAL BANKS 
Introduction – Role of Commercial Banks – Functions of Commercial Banks – Primary Functions and
Secondary Functions – Credit Creation of Commercial Banks – Investment Policy of Commercial Banks –
Profitability of Commercial Banks. Regulation and Control of Commercial Banks by RBI
Unit 2: BANKER AND CUSTOMER RELATIONSHIP 
Banker and Customer: Meaning of Banker and Customer – Banking Company – General and Special
Relationships between Banker and Customer.
Types of Customers and Account holders: Procedure and Practice in opening and conducting the
accounts of customers particularly individuals including minors - Joint Account Holders. Partnership Firms
- Joint Stock companies with limited liability-Executors and Trustees-Clubs and Associations-Joint Hindu
Family
Unit 3: NEGOTIABLE INSTRUMENTS 
Introduction – Meaning & Definition – Features – Kinds of Negotiable Instruments (Meanings only) –
Cheques – Meaning & Definition – Features - Parties – Crossing of cheques – types of crossing.
Endorsements – Meaning – Essentials – Kinds of Endorsement.
Unit 4: PAYING BANKER AND COLLECTING BANKER
Paying Banker – Meaning – Precautions – Statutory Protection to the Paying Banker – Dishonor of
Cheques – Grounds of Dishonor – Consequences of wrongful dishonor of Cheque.
Collecting Banker – Meaning – Duties & Responsibilities of Collecting Banker –Statutory Protection to
Collecting Banker
Unit 5: PRINCIPLES OF BANK LENDING 
Different kinds of borrowing facilities granted by banks - Loans, Cash Credit, Overdraft, Bills Purchased,
Bills Discounted, Letters of Credit - Types of Securities – NPA (Meaning only).Sound principles of Bank
Lending