BANKING OPERATION AND PRACTICES

Paper Code: 
SBFS 101
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

  
 

On completion of this course, the students will be able to:

  1. Critically analyze and evaluate the different types of deposit accounts in the context of banking operations and customer needs, demonstrating a deep understanding of the functions, and benefits of each account type.
  2. Evaluate and apply the principles and regulations related to payment and collection, and the implications of forged instruments, demonstrating advanced analytical and problem-solving skills.
  3. Critically analyze and apply the provisions of the Negotiable Instruments Act, 1881 (Amendment and Miscellaneous Provisions) Act, 2002, in real-world scenarios involving promissory notes, bills of exchange, and cheques, demonstrating advanced problem-solving and legal reasoning skills.
  4. Critically evaluate and apply the principles of bank lending. They will demonstrate advanced analytical skills in assessing the impact and circumstances leading to non-performing assets (NPA) and the regulations governing priority lending for commercial banks.
  5. Critically analyze and evaluate the meaning, significance, and features of innovative banking, including various channels. They will demonstrate advanced comprehension and application skills in understanding payment mechanisms of banks. Additionally, students will demonstrate a deep understanding of wallets and UPI, and aloso evaluate the evolving landscape of digital banking and payment systems.

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

 Learning activities for the students:                              Self learning assignments, Effective questions, Seminar presentation, Live practical problems analysis

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

  

 

12.00
Unit I: 
• Introduction of Banking

• Introduction of Banking – Defining Banks and Banking, Basic functions of Banker, Banking System in India, Structure of Banks in India,Types of Bank, Central Bank
• Deposit Accounts – Savings Accounts, Current Accounts, Fixed Deposit Accounts
• Banker-Customer Relations – Know your Customer[KYC] guidelines-Different Deposit Products – services rendered by Banks – Mandate and Power of attorney; Banker’s lien – right of set off – garnishee order – Income tax attachment order etc.

12.00
Unit II: 
• Introduction of Banking – Defining Banks and Banking, Basic functions of Banker, Banking System in India, Structure of Banks in India,Types of Bank, Central Bank • Deposit Accounts – Savings Accounts, Current Accounts, Fixed Deposit Accounts • Banker-

• Payment and Collection of Cheque – duties and responsibilities of paying and collecting banker-protection available to paying and collecting banker under NI Act – endorsements – forged instruments – bouncing of cheques and their implications
• Opening of accounts for various types of customers – minors – joint account holders – HUF – firms – companies – trusts – societies – Govt. and public bodies Importance of Anti Money Laundering (AML)

12.00
Unit III: 
• Banking Operations:

• Banking Operations: The Negotiable Instruments Act, 1881(Amendment and Miscellaneous Provisions) Act,2002- Notes, Bills and Cheques-Promissory notes, Bills of exchange and cheques (Demand, drafts, payment orders etc.)-
• Responsibility of paying-collecting banker indemnities-guarantees-scope and application-obligation of a banker
• Endorsement-
• Crossing of Cheques-
• Dishonours of Cheques

12.00
Unit IV: 
• Lending Operations:

• Lending Operations: Principles of Bank Lending –Kinds of lending facilities such as Loans, Cash Credit, Overdraft, Bills Discounting, Letters of Credit –NPA: Meaning, circumstances & impact –regulations of priority lending for commercial banks.

12.00
Unit V: 
• Innovative Banking -

• Innovative Banking - Meaning, Significance and Features ,Channels of Banking - ATM, internet, mobile banking, phone banking, Payment mechanism of Banks - cheques, demand drafts, NEFT, RTGS, ECS. Understanding Wallets,UPI- concept, rules and regulations

Essential Readings: 

• P.N. Varshney, Banking law and Practice, Sultan chand and Sons, Delhi
• B.S. Khubehandani, Practice and Law of Banking, MacMillian India Limited
• Jain, Khanna, Tiwari, “ Banking and Public Finance” V.K India Enterprises, New Delhi.
• Natarajan S, Parameshwaran R, “ Indian Banking” S.Chand& Company LTD, New Delhi
• ShrivastavaP.K.,Banking Law & Practice, Himalaya Publishing House, Bombay.

References: 

SUGGESTED READINGS:
• Davar S.R., Banking Law & Practice, Vikas Publishing House, Delhi
• Shrivastava R.S., Nigam Divya, Management of Indian Financial Institutions” Himalaya Publishing House, New Delhi
• TannanM.L.,Banking Law and Practice, Indian Law House, Delhi
• Bhole, L. M., Financial Markets and Institutions, Tata McGraw Hill, Delhi.
E-READINGS:
• InflibnetShodhganga: www.shodhganga.inflibnet.ac.in
• National Digital Library
• World EBook Library
• https://www.rbi.org.in
Journals:
• FIIB Business Review- http:// sagepub.com
• Vikalpa : http:// sagepub.com
• Directory of Open Access Journals

Academic Year: 
2023-2024
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