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Table of Contents:<br/><br/>BANKING REGULATION ACT<br/><br/>Early History of Banking<br/><br/>History of Banking in India<br/><br/>The Presidency Banks<br/><br/>Banking Control in India<br/><br/>Law Merchants<br/><br/>The Negotiable Instruments Act, 1881<br/><br/>The Bankers’ Books Evidence Act, 1891<br/><br/>The Indian Companies Act, 1913<br/><br/>The Reserve Bank of India Act, 1934<br/><br/>Industrial Re-Construction Bank of India (IRBI)<br/><br/>Industrial Development Bank of India (IDBI)<br/><br/>Objectives<br/><br/>Main functions of IDBI<br/><br/>IDBI’s role as a catalyst<br/><br/>Schemes of Assistance<br/><br/>Regional Rural Banks (RRB)<br/><br/>SECURITY AND EXCHANGE BOARD OF INDIA (SEBI)<br/><br/>DEPOSITORY SYSTEM<br/><br/>Depository<br/><br/>Benefits of depository services<br/><br/>DEMATERIALISATION (DEMAT)<br/><br/>What is dematerialisation<br/><br/>Depository and its role<br/><br/>Depository participants (DPs) and their role<br/><br/>Rematerialisation<br/><br/>Benefit<br/><br/>MONEY LAUNDERING<br/><br/>Essential elements of money laundering<br/><br/>Legal set up in India<br/><br/>Role of banks<br/><br/>Offences and punishment<br/><br/>Bill to curb money laundering<br/><br/>The Banking Regulation Act, 1949<br/><br/>Main provisions of the Act<br/><br/><br/>Origin of the word "Bank"<br/><br/>Definition : "Bank"<br/><br/>Statutory Definition<br/><br/>Banking Company<br/><br/>"Banks" and "Banking Companies" : Distinction<br/><br/>Exception of banking company<br/><br/>Accepting of deposits by unincorporated companies etc.<br/><br/>Approved Securities<br/><br/>Business of banking (Section 6)<br/><br/>Non-banking business<br/><br/>"Banker"<br/><br/>No satisfactory definition<br/><br/>Money lenders are not banker<br/><br/>Difference between banking and money lending<br/><br/>Who can be a Banker or Bank<br/><br/>I. Section 3 of Negotiable Instruments Act, 1881<br/><br/>II. Section 11 of the Companies Act, 1956<br/><br/>III. The Reserve Bank of India Act, 1934<br/><br/>IV. The Banking Regulation Act, 1949<br/><br/>Mere accepting deposit is not Banking<br/><br/>Essentials of Banking Company<br/><br/>Restriction on acceptance of deposits<br/><br/>Banking business by Co-operative Societies : S. 56(o) read with S. 22<br/><br/>Money Lender not a Banker<br/><br/>Financial Institutions as a banker<br/><br/>Is Co-operative Banks or Co-operative Societies are Banking Company Under Section 5(c)?<br/><br/>Application of the Act (Banking Regulation Act) to Co-operative Banks<br/><br/>TO WHICH CO-OPERATIVE SOCIETIES THE ACT DOES NOT APPLY?<br/><br/>Name of the Banking Company<br/><br/>Restrictions on use of "banker", "bank" and "banking" (Section 7) Exceptions<br/><br/>Application to Co-operative Society (Section 7)<br/><br/>RBI Circular binding on Co-operative Societies<br/><br/>Social Control of the Banking Companies<br/><br/>Two Significant Event<br/><br/>1) Social Control of the Banking Companies<br/><br/>History<br/><br/>Social Control<br/><br/>National Credit Council<br/><br/>Functions of N.C.C.<br/><br/>(2) Nationalisation of Banking Companies<br/><br/>I. First Phase of 14 Banks<br/><br/>II. Second Phase of six banks<br/><br/>Objects of Nationalisation<br/><br/>Why Nationalisation was preferred in spite of Social Control?<br/><br/>Nationalisation : Unconstitutional<br/><br/>"Rustam Cawasjee Cooper v. Union of India"—(Bank Nationalisation Case)<br/><br/>Ordinance Replaced : Validity of Nationalisation Upheld<br/><br/>Arguments for Nationalisation<br/><br/>Arguments against Nationalisation of banks<br/><br/>Reserve Bank’s policy on New Banks<br/><br/>Reserve Bank on Rural Banking<br/><br/>Minimising the Number of Banks (Planning of keeping only 7 Nationalised Banks)<br/><br/>Powers and Functions of Reserve Bank<br/><br/>1. As to Reserve Fund (S. 17)<br/><br/>2. As to cash reserve (S. 18)<br/><br/>2a. As to ‘repo’ and ‘reverse repo’ rate—See Sec. 12-AB of R.B.I. Act<br/><br/>3. As to loans and advances (S. 20)<br/><br/>4. As to licensing of banking companies (S. 22)<br/><br/>5. As to opening of new, transfer of existing, place of business etc. (S. 23)<br/><br/>6. As to maintenance of a percentage of assets (Ss. 24, 25)<br/><br/>7. As to monthly return, accounts and balance sheet<br/><br/>8. As to inspection (Power of Reserve Bank) (S. 35)<br/><br/>9. Power of the Reserve Bank to give direction (S. 35-A)<br/><br/>10. Further powers and functions of Reserve Bank (S. 36)<br/><br/>11. Power of control over management<br/><br/>12. Supersession of Board of Directors of Banking Company.<br/><br/>13. Acquisition of undertaking of Banking Companies (S. 36AE)<br/><br/>14. Power as to Suspension and winding up of Banking Companies (Ss. 36-B, 37 to 45) and (Ss. 45-A to 45-X)<br/><br/>15. Power as to Reconstruction and Amalgamation of Banking Companies (S. 44-A, 44-B, S. 45)<br/><br/>16. As agent of the Central Government or the State— See in RBI.<br/><br/>Commercial Banks<br/><br/>(A) Indian Banks and Foreign Banks<br/><br/>Foreign Banks in India<br/><br/>A new deal for Foreign Banks<br/><br/>The major theme<br/><br/>Origin of policy<br/><br/>(B) Scheduled Commercial Banks and Non-Scheduled Commercial Banks<br/><br/>Scheduled Commercial Banks<br/><br/>Conditions for inclusion in 2nd Schedule<br/><br/>Privileges and Facilities of Scheduled Banks<br/><br/>(C) Commercial Banks in Public and Private Sector<br/><br/>Public Sector Banks (PSBs)<br/><br/>Private Sector Banks<br/><br/>Private Sector Banks in India<br/><br/>Autonomy For Commercial Banks<br/><br/>Parameters for additional autonomy<br/><br/>Banking Company : Legal States<br/><br/>State of Public Authority<br/><br/>Guidelines for New Private Banks<br/><br/>Functions of Commercial Banks<br/><br/>I. Essential/Primary Functions<br/><br/>II. Subsidiary Functions<br/><br/>III. Miscellaneous Functions Services<br/><br/>(1) Accepting of Deposits<br/><br/>(2) Lending of Money<br/><br/>(3) Issuing of Notes<br/><br/>(4) Remittance of Funds<br/><br/>(5) Use of Cheque<br/><br/>(6) Agencies Services<br/><br/>(7) General Utility Services : Community<br/><br/>(8) General Utility Services<br/><br/>(9) International Banking Services<br/><br/>(10) Merchant Banking Services<br/><br/>PARA-BANKING ACTIVITIES/SERVICES<br/><br/> What are para-banking activities/services?<br/><br/> Purpose of formation of subsidiary companies<br/><br/> Para Banking Companies : N.B.F.C.<br/><br/> Foreign Exchange business/Services<br/><br/>New banking facility for urban slum dwellers in Bhopal<br/><br/>Step to promote IT-enabled financial inclusion package<br/><br/>Licensing of Banking Companies<br/><br/>(1) Necessity of License<br/><br/>At the Commencement of the Act<br/><br/>(2) Procedure of License<br/><br/>(3) Condition for license : [Section 22(3)1<br/><br/>(4) Cancellation of License : Section 22(4)<br/><br/>(5) Appeal and remedy against cancellation [Section 22(5)]<br/><br/>Banking Licence to Postal Department<br/><br/>Unlicensed Banking<br/><br/>Opening of New Branches and Transfer of Existing Place of Business : (Section 23)<br/><br/>Exception<br/><br/>1. Temporary New Branch<br/><br/>2. Change of place of business<br/><br/>Conditions for granting permission [Section 23(2)]<br/><br/>Revocation of permission [Section 23(4)]<br/><br/>Place of business<br/><br/>Restrictions on Opening of New Branches by Co-operative Societies<br/><br/>R.B.I. Circular is binding<br/><br/>Liability of Reserve Bank<br/><br/>LIBERALISED BRANCH AUTHORISATION POLICY<br/><br/>OPERATIONAL GUIDELINES OF BRANCH LICENSING<br/><br/>System of Banking<br/><br/>(1) Central Banking<br/><br/>(2) Unit Banking<br/><br/>Advantage of Unit Banking<br/><br/>Disadvantages of Unit Banking<br/><br/>(3) Branch Banking<br/><br/>(4) Group Banking<br/><br/>(5) Chain Banking<br/><br/>Proxy Banking in India<br/><br/>Reasons for setting-up of Proxy Banking<br/><br/>Benefits to rurals<br/><br/>(6) Merchant Banking Service<br/><br/>Banker’s Merchant Bankers<br/><br/>(7) Universal Banking<br/><br/>Objective<br/><br/>RBI guidelines on Universal Banking<br/><br/>(8) Narrow Banking<br/><br/>What is narrow banking?<br/><br/>What are advantages<br/><br/>What is status of narrow banking in India?<br/><br/>(9) Retail Banking<br/><br/>Background<br/><br/>Basic characteristics<br/><br/>(10) Weekly Banking<br/><br/>RBI releases new rules for private players in banking sector<br/><br/>Minimum equity<br/><br/>Draft rules<br/><br/>RBI’s concern over rising instances of frauds in retail banking<br/><br/>Rating of Banks<br/><br/>Rating Criteria<br/><br/>CAMELS rating criteria<br/><br/>Parameters for rating a bank<br/><br/>Rating Symbols—Domestic Banks<br/><br/>Internet Banking (E-Banking)<br/><br/>Definition<br/><br/>Internet banking in India—NET Banking<br/><br/>Services through E-Banking<br/><br/>Advantage of Internet Banking<br/><br/>Security Precautions<br/><br/>RBI proposes new payment systems<br/><br/>PROVISIONS RELATING TO CERTAIN OPERATIONS OF BANKING COMPANIES<br/><br/>(1) Preservation of records (S. 45-Y)<br/><br/>(2) Return of paid instruments (S. 45-Z)<br/><br/>(3) (i) Nomination for payment of deposit money (S. 45-ZA)<br/><br/> Who can be nominee<br/><br/> Can a minor be a nominee<br/><br/> Rights of nominee<br/><br/> Rights of successor of the depositor<br/><br/>(ii) Notice of claims of other persons regarding deposits not receivable (S. 45-ZB)<br/><br/>(iii) Nomination for return of articles kept in safe custody (S. 45-ZC)<br/><br/>(iv) Notice of claims of other persons regarding articles not receivable (S. 45-ZD)<br/><br/>(v) Nomination for release of contents of safety lockers (S. 45-ZE)<br/><br/>(vi) Notice of claims of other persons regarding safety lockers not receivable (S. 45-ZF)<br/><br/>Chapter IV<br/><br/>Banks and Customers Relation<br/><br/>I. Who is a bank or banker?<br/><br/>II. Who is a Customer?<br/><br/>Frequency anticipated<br/><br/>Dealing to be of a Banking Nature<br/><br/>Essential requisite of Relation<br/><br/>Account—Is Nexus of Relation<br/><br/>Contractual Relation<br/><br/>III. Services rendered by Banks : (Banking Services)<br/><br/>(i) General Services : [Services to depositors and borrowers]<br/><br/>(ii) Ancillary Service<br/><br/>(iii) Special Banking Services<br/><br/>(iv) General Utility Services for all<br/><br/>IV. Relationship Between Banker and Customer<br/><br/>1. Debtor and Creditor<br/><br/>Deposit amount as a debt<br/><br/>Nature of Fixed Deposit : "A Debt"<br/><br/>Fixed Deposit "either or survivor" clause : Meaning<br/><br/>Instructed deposit : not debt<br/><br/>Conditions for payment of deposit amount<br/><br/>Favoured or Privileged Debtor<br/><br/>Taking re-possession by use of force—Unlawful<br/><br/>Discounting of Cheques<br/><br/>Collection of Cheques<br/><br/>2. Trustee and beneficiary<br/><br/>Banker as a trustee and customer as a beneficiary Ccestui que trust)<br/><br/>Deposit of money with Specific Instruction<br/><br/>Safe Custody in Lockers : [See in the Chapter of Bailor and Bailee]<br/><br/>3. Principal and Agent<br/><br/>Other Agency Services<br/><br/>No bank provides service without authority of the customer<br/><br/>4. Trader and Customer (Consumer)<br/><br/>Continuance of Banker’s Service<br/><br/>Mortgage of Joint FDR<br/><br/>5. Bailee and Bailor Relation<br/><br/>Deposit in the account does not amount bailment<br/><br/>Safe Custody of Customer’s valuables<br/><br/>Knowledge of the contents of the lockers<br/><br/>(i) Locker user register<br/><br/>(ii) Safe Custody register<br/><br/>(iii) Withdrawl of articles register<br/><br/>6. Guarantor and Beneficiary<br/><br/>Bank Guarantee<br/><br/>7. Mortgager and Mortgagee<br/><br/>8. Pawnor and Pawnee<br/><br/>9. Lessor and Lessee<br/><br/>Termination of Banker and Customer Relationship<br/><br/>(A) Termination by the customer<br/><br/>(B) Termination by the Banker<br/><br/>I. Under the operation of Law<br/><br/>II. Undesirable Accounts<br/><br/>Reasonable notice to close account<br/><br/>Commercial Viability for maintaining account :<br/><br/>Undesirable Account<br/><br/>Dormant Account<br/><br/>Inoperative (others)<br/><br/>Inoperative (10 years and over) unclaimed deposits<br/><br/>Non-performing Account (NPA)<br/><br/>Non-performing Assets (NPA)<br/><br/>Introduction<br/><br/>NPAs, what is?<br/><br/>INTRODUCTION TO NPA<br/><br/>Types of NPA<br/><br/>Reasons Behind NPA<br/><br/>Effects of NPA on Banks & Financial Institutions<br/><br/>Bad loan of some big banks<br/><br/>Obligations (duties) and rights of banker and customer<br/><br/>I. Banker’s Obligations : Statutory duties of Banks<br/><br/>1. Obligation (duty) to honour cheques<br/><br/>(i) There must be sufficient funds<br/><br/>(ii) The funds must be properly applicable to the payment of the cheque<br/><br/>(iii) The banker must be duly required to pay<br/><br/>(iv) Presentation of cheques within working hours of business<br/><br/>(v) Presentment of cheque within a reasonable time<br/><br/>(vi) Presentment of cheque at the branch where account is kept<br/><br/>(vii) Not a case of justified dishonour<br/><br/>Application of the Garnishee Order to Various Types of Accounts<br/><br/>Rights of the Attaching Creditor<br/><br/>Attachment Order Issued by Income-Tax Authorities<br/><br/>Extension of Liability<br/><br/>2. Obligation to maintain Secrecy of Accounts. '<br/><br/>I. Disclosure of Information Required by Law<br/><br/>II. Disclosure Permitted by Banker’s Practices and Usages<br/><br/>Risks of Unwarranted and Unjustifiable Disclosure<br/><br/>3. Obligation to honour guarantee<br/><br/>4. Obligation to honour letter of Credit<br/><br/>5. Obligation as to recovery of debts<br/><br/>6. Dropping of cheques in drop boxes for collection<br/><br/>Remedies for refusal<br/><br/>Depositing of Cheques by Phone<br/><br/><br/>7. Obligation (duty) to maintain correct account of the customer<br/><br/>8. Not to convert excess credit as overdraft<br/><br/>II. Banker’a Right<br/><br/>1. Right of General Lien<br/><br/>Exceptions to the Right of Lien<br/><br/>2. Banker’s Right of Set-off<br/><br/>Nature of Set-off<br/><br/>Set-off in Joint Account<br/><br/>FDR before Maturity<br/><br/>FDR After Maturity<br/><br/>Set-off in Fixed Deposit<br/><br/>3. Right of Appropriation (Rule in Clayton’s Case)<br/><br/>Clayton’s Case<br/><br/>(1) Appropriation by the debtor<br/><br/>(2) Appropriation by the Creditor (Section 60)<br/><br/>(3) Appropriation by law (Section 61)<br/><br/>4. Banker’s Right to Charge Interest, Incidental Charges, etc.<br/><br/>Charge on Cheque Book<br/><br/>5. Right to ask Succession Certificate<br/><br/>6. Right to publish defaulting borrowers<br/><br/>Inclusion of name of borrower in list of defaulter<br/><br/>II. The Obligation and Right of customers to his banker<br/><br/>1. Not to draw cheques without sufficient Fund<br/><br/>2. Drawing Cheques with reasonable care<br/><br/>3. To repay overdrawings<br/><br/>4. To pay charges of the bank<br/><br/>5. To communicate or inform facts<br/><br/>6. To make demand for repayment of deposit<br/><br/>Customer’s Accounts and Banks<br/><br/>Why Bank Accounts?<br/><br/>Deposit Accounts<br/><br/>Classification of Customer’s Accounts<br/><br/>Regulation of Competition in Banking<br/><br/>Classification of Deposits<br/><br/>(A) Demand Deposits<br/><br/>(B) Time Deposits<br/><br/>I. Fixed Deposit Accounts<br/><br/>Fixed Deposits in Joint Names<br/><br/>Change in Names<br/><br/>Nature of Joint Fixed Account<br/><br/>Joint Fixed Deposit qua Joint Account<br/><br/>Fixed deposits : Renewal<br/><br/>II. SAVINGS BANK ACCOUNTS<br/><br/>Recurring Deposit or Cumulative Deposit Accounts<br/><br/>III. CURRENT ACCOUNTS<br/><br/>Return of unclaimed Deposits (Section 26)<br/><br/>Banking Service of NRIs in India<br/><br/>What are the various facilities available to NRIs/OCBs?<br/><br/>Opening of Accounts : Procedure<br/><br/>Bank Accounts of every Adult by 2016<br/><br/>Fixed Deposit Account<br/><br/>Opening of Current and Savings Accounts<br/><br/>1. Application on the Prescribed Form<br/><br/>2. Introduction of the Applicant<br/><br/>3. Specimen Signature<br/><br/>4. Photograph of the Applicant<br/><br/>5. Compulsory quoting of PAN/GIR number<br/><br/>6. Initial Deposits (Amount)<br/><br/>Current Account<br/><br/>Fixed Deposits must be opened with Rs. 100.00 without any upper limit.<br/><br/>Recurring Deposits are opened with minimum Rs. 100.00 and maximum of Rs. 10,000.00.<br/><br/>Pay-in-Slip<br/><br/>Operating the Bank Account<br/><br/>MICR Cheques<br/><br/>CTS-2010: Cheque Truncation System-2010<br/><br/>Legal Aspects of Entries in the Pass Book<br/><br/>Passbook to constitute an Authentic Record<br/><br/>Amount inadvertently credited : A Debt<br/><br/>Effect of the Customer Signing Confirmation Slips<br/><br/>Duty of Customer to examine pass book recognised in U.S.A.<br/><br/>Duty of the Customer<br/><br/>Recovery of excess amount<br/><br/>Effect of False Entry in Pass Book<br/><br/>Maintenance of Accounts<br/><br/>Precautions to be taken by the banker and the customer<br/><br/>Closing of a Bank Account<br/><br/>Closing of Accounts on Commercial Viability<br/><br/>Dormant/Inoperative Accounts<br/><br/>Special Types of Banker’s Customers<br/><br/>MINOR<br/><br/>Legal Provisions Regarding Guardianship of a Minor<br/><br/>Kid’s Banking Account (Children)<br/><br/>Kid’s Banking<br/><br/>Minors over 10 years can open SB account : RBI<br/><br/>MARRIED WOMAN<br/><br/>PARDANASHIN WOMAN<br/><br/>ILLITERATE PERSONS<br/><br/>LUNATICS<br/><br/>TRUSTEES<br/><br/>EXECUTORS AND ADMINISTRATORS<br/><br/>CUSTOMER’S ATTORNEY<br/><br/>JOINT HINDU FAMILY<br/><br/>PARTNERSHIP FIRM<br/><br/>JOINT STOCK COMPANIES<br/><br/>1. Examination of Documents<br/><br/>2. Copy of the Board’s Resolutions<br/><br/>3. The Borrowing Power of the Company<br/><br/>4. Registration of Charges under the Companies Act<br/><br/>5. Director’s Personal Accounts<br/><br/>CLUBS, SOCIETIES AND CHARITABLE INSTITUTIONS<br/><br/>Capital and Share Capital<br/><br/>(1) Only ordinary or Equity shares<br/><br/>(2) Share Capital Ratio<br/><br/>(3) Voting Rights<br/><br/>Requirement as to minimum paid-up Capital and Reserves (Section 11)<br/><br/>Paid-up Capital and Reserves<br/><br/>Minimum paid up Capital & Reserve for a co-operative<br/><br/>(1) No Banking Business allowed [Section 11(1)1<br/><br/>(2) Foreign Banking Company (not less than 15 lakh rupees) [Section 11(2)]<br/><br/>(3) Other Banking Companies [Section 11(3)]<br/><br/>Deposits of foreign company [Section 11(4)]<br/><br/>Not exceeding 2Vi% paid-up rate of shares<br/><br/>Comment of Sections 17 & 18<br/><br/>Demand and Time liability<br/><br/>Scheduled Banks [Exempted from Sections 17 & 18]<br/><br/>Cash Reserve Ratio (CRR)<br/><br/>CRR controls liquidity and constrains inflation<br/><br/>Interest on Cash Reserve<br/><br/>Applicability to Co-operative Banks<br/><br/>A banking company cannot be a holding company<br/><br/>Loans and Advances<br/><br/>Comment on Section 20<br/><br/>Power to remit debts<br/><br/>Waiver of Commercial Loan<br/><br/>Nature of Guidelines<br/><br/>Powers of the Court<br/><br/>Lending of Funds<br/><br/>Basic Principles of Lending<br/><br/>1. Principle of Safety<br/><br/>2. Principle of profitability<br/><br/>3. Principle of Liquidity<br/><br/>4. Principle of Purpose<br/><br/>5. Principle of risk spread<br/><br/>6. Principle of Security<br/><br/>7. National Interest<br/><br/>FORMS OF ADVANCES<br/><br/>1. Cash Credit Commitment Charge<br/><br/>2. Overdrafts<br/><br/>3. Loans<br/><br/>Classification of Loans and Advances<br/><br/>Securities for Bank Advances<br/><br/>General principles of Secured Advances<br/><br/>Advances Against Documents of Title to Goods<br/><br/>Risk in case of Advances Against Documents<br/><br/>Advances Against Life Insurance Policies<br/><br/>Merits of Life Insurance Policy as Security<br/><br/>Demerits of Life Insurance Policy<br/><br/>Precaution to be taken by the banker<br/><br/>Classification of modes of securities<br/><br/>Pledge<br/><br/>Who can pledge?<br/><br/>Rights of a banker as a pledgee<br/><br/>Duties of the Pledgee Bank<br/><br/>Mortgage<br/><br/>Essential Features of Mortgage<br/><br/>Kinds of Mortgages<br/><br/>Rights of Mortgagee<br/><br/>Right to sue and Right to realise the Security distinct Rights<br/><br/>SUB-MORTGAGE<br/><br/>ASSIGNMENT<br/><br/>Loans to Companies<br/><br/>Charge<br/><br/>Characteristics of Floating Charge<br/><br/>Crystallisation of Floating Charge<br/><br/>Registration and Modification of Charges<br/><br/>Documents to be obtained<br/><br/>Board Resolution<br/><br/>Borrowing Capacity<br/><br/>Common Seal<br/><br/>REGISTRATION, MODIFICATION AND SATISFACTION OF CHARGE<br/><br/>Registration of charges created on the assets of a company<br/><br/>COMPROMISE SETTLEMENT THROUGH LOK ADALATS<br/><br/>R.B.I. GUIDELINES ON LOK ADALATS<br/><br/>DRT LOK ADALATS<br/><br/>HYPOTHECATION<br/><br/>Legal aspects in Hypothecation<br/><br/>GUARANTEE<br/><br/>Guarantee as a security for Banker’s advance<br/><br/>Economic Functions of the Guarantee<br/><br/>Essential features of Guarantee<br/><br/>Contract of Indemnity<br/><br/>Indemnity and guarantee distinguished<br/><br/>Kinds of guarantee<br/><br/>Liability under bank guarantee<br/><br/>Letters of Credit and Bank Guarantees<br/><br/>No Arbitration about Bank Guarantee<br/><br/>Surety’s liability co-extensive with that of the principal debtor<br/><br/>Banker’s claim against a bankrupt surety’s estate<br/><br/>Surety’s Rights and Liabilities<br/><br/>Condition precedent to liability<br/><br/>Cheque given as security<br/><br/>Discharge of Surety’s liability<br/><br/>Effect of Debt Relief Act<br/><br/>Restrictions on power to remit Debts<br/><br/>Surety’s Rights<br/><br/>Rights against the principal debtor<br/><br/>Right against the creditor<br/><br/>Right against Co-sureties<br/><br/>IX<br/><br/>Management of Banking Companies<br/><br/>(1) Constitution of the Board of Directors<br/><br/>(2) Prohibition Employment of Managing Agents<br/><br/>(3) Prohibition Employment of Certain Person<br/><br/>(4) Prohibition to be managed by certain persons (Section 10)<br/><br/> Prohibition to be managed by Political Persons<br/><br/>(5) Prohibition of Common Directors<br/><br/>(6) Appointment of Whole-time Chairman<br/><br/> Chairman on part-time basis<br/><br/> Qualification of Chairman<br/><br/> Disqualification of Chairman<br/><br/> Powers of Reserve Bank of India<br/><br/>Control over Management<br/><br/>1. Election of New Directors Added by Act 95 of 1956 w.e.f. (14-1-1957). :<br/><br/>2. Power of Reserve Bank to remove managerial and other persons (Section 36-AA) Section 36-AA provides<br/><br/>3. Amendments of provisions relating to appointments of managing directors, etc. to be subject to previous approval of Reserve Bank. (Section 35-B)<br/><br/>Overriding effect of this part II-A<br/><br/>4. Power of Reserve Bank to appoint additional directors (Section 36-AB)<br/><br/>5. PART II-AB<br/><br/>Supersession of Board of Directors of Banking Company<br/><br/>Acquisition of the undertaking of Banking Companies Power of Central Government Maintenance of a percentage of assets (Section 24).<br/><br/>Return unclaimed Deposits<br/><br/>Monthly returns and power to call for other returns and information (Section 27).<br/><br/>Suspension and Winding up of Banking Companies<br/><br/>(A) Suspension of Banking Business<br/><br/>(1) By High Court<br/><br/>Appointment of special Authority [Section 37(3)]<br/><br/>Powers of Reserve Bank [Section 37(4)]<br/><br/>(2) By Central Government (Section 45)<br/><br/>Effect of Moratorium<br/><br/>Duration of Moratorium<br/><br/>(B) Winding up of the Banking Companies<br/><br/>Inspection<br/><br/>Powers of Reserve Bank [Section 35(4), (5) and (6)]<br/><br/>Circumstances when a Banking Company deemed unable to pay its debts<br/><br/>Voluntary Winding up<br/><br/>Proceedings of Winding up<br/><br/>Appointment of Court Liquidator (Section 38-A).<br/><br/>Special Provisions for Speedy Disposal of Winding up Proceedings<br/><br/>(C) Reconstruction and Amalgamation of Banking Companies<br/><br/>Forms of reconstruction and amalgamation<br/><br/>Powers and Functions of Reserve Bank of India<br/><br/>Procedure for amalgamation of banking companies (Section 44-A)<br/><br/>Restriction on compromise or arrangement between banking company and creditors<br/><br/>Power of Reserve Bank to apply to Central Government for suspension of business by a banking company and to prepare scheme of reconstitution or amalgamation (Section 45)<br/><br/>MERGERS & ACQUISITIONS<br/><br/>Issues in Mergers<br/><br/>Constitution of Tribunal: Banking Tribunal<br/><br/>Tribunal to have powers of Civil Court<br/><br/>MISCELLANEOUS<br/><br/>Letters of Credit (Documentary Credits)<br/><br/>Definition<br/><br/>Circular Notes<br/><br/>Circular Cheques<br/><br/>Travellers’ Cheques<br/><br/>Special Features of travellers’ Cheque<br/><br/>Difference between Traveller’s cheque and Circular cheque<br/><br/>Kinds of Letters of Credits<br/><br/>Basic Features<br/><br/>(i) Traveller’s Letter of Credit<br/><br/>Essential features of Traveller’s Letter of Credit<br/><br/>(ii) Letters of Commercial Credit<br/><br/>Parties to the Letters of Credit<br/><br/>(1) In case of Travellers' Letter of Credit<br/><br/>(2) In case of letter of Commercial Credit<br/><br/>Classifications of Letter of Commercial Letters of Credit<br/><br/>(1) Revocable and Irrevocable Letters of Credit<br/><br/>As per Article 1 of the Uniform Customs and Practice for Documentary Credits<br/><br/>(2) Fixed and Revolving Credit<br/><br/>(3) Documentary and Clean Credit<br/><br/>(4) With and Without Recourse" Credit<br/><br/>(5) Transferable and Non-transferable Credit<br/><br/>(6) Confirmed and Unconfirmed Letters of Credit<br/><br/>Performance guarantees<br/><br/>Advantage of a Letter of Credit<br/><br/>(A) To the beneficiary<br/><br/>(B) Advantages of Letter of Credit to the Buyer (or Importer)<br/><br/>THE LIABILITY OF THE ISSUING BANKER<br/><br/>Distinction between Irrevocable Letter of Credit and Bank Guarantee<br/><br/>OPENING OF A LETTER OF CREDIT<br/><br/>UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS<br/><br/>General Provisions<br/><br/>A. Form and Notification of Credits<br/><br/>B. Liabilities and Responsibilities : Examination of Documents<br/><br/>C. Documents<br/><br/>D. Miscellaneous Provisions relate to :<br/><br/>E. Transfer<br/><br/>Computer Banking : E-Banking<br/><br/>BANKING THROUGH TECHNOLOGY<br/><br/>A Shift Towards A Cashless Society<br/><br/>STANDS-ALONE COMPUTER SYSTEM<br/><br/>MULTI-USER SYSTEMS<br/><br/>BRANCH AUTOMATION<br/><br/>COMPUTER<br/><br/>CLASSIFICATION OF COMPUTERS<br/><br/>GENERATIONS OE COMPUTER<br/><br/>USE OF COMPUTERS<br/><br/>COMPONENTS OF COMPUTER<br/><br/>HARDWARE<br/><br/>INPUTS DEVICES<br/><br/>OUTPUT DEVICES<br/><br/>STORAGE DEVICES<br/><br/>STORAGE SYSTEM<br/><br/>Floppy disk<br/><br/>Magnetic tape<br/><br/>Hard disk<br/><br/>Optical disk or compact disk (CD)<br/><br/>BANKNET<br/><br/>RBINET<br/><br/>I-net<br/><br/>NICNET<br/><br/>IBA SWADHAN NETWORK<br/><br/>INFINET<br/><br/>Intra-bank<br/><br/>Inter-bank<br/><br/>INTERNET<br/><br/>Face-Book<br/><br/>CORE BANKING SOLUTIONS<br/><br/>Essential requirement of CBS<br/><br/>Advantages<br/><br/>Customer<br/><br/><br/>Banks<br/><br/>ELECTRONIC PAYMENT SYSTEM & RELATED ISSUES<br/><br/>REAL TIME GROSS SETTLEMENT SYSTEM (RTGS)<br/><br/>Process of RTGS<br/><br/>Present status of RTGS in India<br/><br/>AUTOMATED TELLER MACHINE (ATM)<br/><br/>HAWK<br/><br/>Personal Identification Number (PEN)<br/><br/>PLASTIC CARDs (PLASTIC MONEY)<br/><br/>CHARGE CARD<br/><br/>CREDIT CARD<br/><br/>DEBIT CARD<br/><br/>GOLD CARD<br/><br/>SMART CARD<br/><br/>SWITCH CARD<br/><br/>CO-BRANDED CARD<br/><br/>ELECTRONIC PURSE<br/><br/>Advantages of plastic cards<br/><br/>ELECTRONIC CASH<br/><br/>CHEQUE TRUNCATION<br/><br/>ELECTRONIC CHEQUES<br/><br/>BANKING SERVICES THROUGH INFORMATION<br/><br/>TECHNOLOGY : Applications<br/><br/>Mobile ATM<br/><br/>UPDATION OF TRANSACTIONS IN BANKS<br/><br/>SIGNATURE STORAGE & RETRIEVAL<br/><br/>BANK AUTOMATION<br/><br/>INTERNET BANKING IN INDIA—RESERVE BANK OF INDIA GUIDELINES<br/><br/>Technology and Security Standards<br/><br/>Legal Issues<br/><br/>Regulatory and Supervisory Issue<br/><br/>IMPACT OF COMPUTER TECHNOLOGY<br/><br/>Impact on customer services<br/><br/>Impact on Employees<br/><br/>Impact on services<br/><br/>Impact on organizational structure and orientation<br/><br/>INFORMATION TECHNOLOGY ACT, 2000<br/><br/>Validity of eCom in india<br/><br/>Banking through Mobiles<br/><br/>Mobile Banking Service<br/><br/>Mobile Way to Financial Inclusion<br/><br/>RBI’s Draft norms on mobile payments<br/><br/>Long-term goal<br/><br/>Infrastructure<br/><br/>Registration<br/><br/>DIGITAL SIGNATURES<br/><br/>E-COMMERCE<br/><br/>ELECTRONIC FUNDS TRANSFER<br/><br/>Procedure<br/><br/>SPECIAL ELECTRONIC FUNDS TRANSFER SYSTEM<br/><br/>PARTICIPANTS<br/><br/>SEFT-PROCESS FLOW<br/><br/>Transmission/Submission of SEFT Data File to the SEFT centre<br/><br/>Receiving NCC transmitting NCC Data File to the beneficiary banks<br/><br/>Data validation at receiving SEFT Service Branch<br/><br/>IBA’s ELECTRONIC CLEARING SERVICE<br/><br/>MAGNETIC INK CHARACTER RECOGNITION (MICR)<br/><br/>Banking Ombudsman<br/><br/>What is Banking Ombudsman<br/><br/>Nature of Jurisdiction<br/><br/>Rationale of Appointing Banking Ombudsman.<br/><br/>Jurisdiction of the Banking Ombudsman<br/><br/>PREREQUISITE FOR COMPLAINT WITH OMBUDSMAN<br/><br/>AWARD BY THE BANKING OMBUDSMAN<br/><br/>Procedure of filing complaint<br/><br/>Special Feature of Complaint<br/><br/>Ombudsman washes hands of Internet banking frauds<br/><br/>COMPROMISE SETTLEMENT THROUGH LOK ADALATS<br/><br/>IMPORTANT ASPECTS<br/><br/>DEBTS RECOVERY TRIBUNALS (DRT)<br/><br/>RATIONALE FOR SETTING UP DRT<br/><br/>DRT APPLICABILITY<br/><br/>CONSTITUTION OF DRT<br/><br/>DEBTS RECOVERY APPELLATE TRIBUNAL<br/><br/>DRT NOT A CIVIL COURT<br/><br/>PROCEDURE FOLLOWED BY THE TRIBUNALS<br/><br/>Debts Recovery Tribunal (DRT) and Banking Ombudsman<br/><br/>Order of DRT is not a decree<br/><br/>Reserve Bank of India<br/><br/>Royal Commission<br/><br/>THE RESERVE BANK OF INDIA ACT, 1934<br/><br/>CHAPTER I—PRELIMINARY<br/><br/>CHAPTER II—INCORPORATION CAPITAL, MANAGEMENT AND BUSINESS<br/><br/>Business which the Reserve Bank of India may transact (S. 17)<br/><br/>Central Banking System in India<br/><br/>Nationalisation of Reserve Bank of India<br/><br/>CHAPTER III—POWER AND FUNCTIONS OF RESERVE BANK<br/><br/>(A) Power and Functions under the Reserve Bank of India Act, 1934<br/><br/>(1) Issuance of Currency : Monopoly of note-issue Distribution of Currency Notes and Coins PIL for seeking proper distribution of currency<br/><br/>and coins : S. 38 of RBI Plastic Money<br/><br/>(2) Banker to the Government<br/><br/>(3) Banker’s Bank<br/><br/>(4) Control of Banks<br/><br/>(5) Controller of Credits<br/><br/>(6) Compliance of Statutory Reserves<br/><br/>(7) Collection of information<br/><br/>BOARD FOR FINANCIAL SUPERVISION (BFS)<br/><br/>(8) Maintenance of external value<br/><br/>(9) Monetary Controller of the Country<br/><br/>Dealing in repo or reverse repo (S. 12-AB)<br/><br/>(10) Other promotional and developmental function<br/><br/>(11) As agent of the Central Government<br/><br/>The acting of agent of Central Government (S. 11-A)<br/><br/>The Reserve Bank of India and its Promotional Role<br/><br/>Reserve Bank of India as Controller of Commercial Banks<br/><br/>Master Circular (S. 35)<br/><br/>Supervisory Functions : Separated<br/><br/>Non-Banking Financial Institutions : Control and Regulations<br/><br/>RBI grants licences to 10 small banks<br/><br/>RBI for large co-operative to turn into banks<br/><br/>1. Definition of ‘Deposit’<br/><br/>Restrictions on accepting ‘Deposits’<br/><br/>2. Requirement of registration and net owned fund (S. 45-LA).<br/><br/>3. Maintenance of percentage of assets (S. 45IB).<br/><br/>4. Reserve fund (S. 45IC).<br/><br/>5. Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money (S. 45IJ).<br/><br/>6. Power of Bank to determine policy and issue directions (S. 45JA).<br/><br/>7. Power of Bank to collect information from non-banking institutions as to deposits and to give directions<br/><br/>(S. 45K).<br/><br/>8. Power of Bank to call for information from financial institution and to give direction (S. 45L).<br/><br/>9. Duty of non-banking institutions to furnish statements etc., required by Bank (S. 45-M).<br/><br/>10. Power and duties of auditors (S. 45-MA).<br/><br/>11. Power of Bank to prohibit acceptance of deposit and alienation of assets (S. 45-MB).<br/><br/>12. Power of Bank to file winding up petition (S. 45-MC).<br/><br/>13. Inspection (S. 45N).<br/><br/>14. Deposits not to be solicited by unauthorised person (S. 45-NA).<br/><br/>15. Disclosure of information (S. 45-NB).<br/><br/>16. Power of bank to exempt (S. 45-NC).<br/><br/>17. Chapter IIIB to override other laws (S. 45Q).<br/><br/>18. Power of Company Law Board to offer repayment of deposit (S. 45-QA).<br/><br/>19. Nomination by depositors (S. 45-QB).<br/><br/>20. Power to issue search warrants (S. 45-T).<br/><br/>21. Not to open subsidiaries abroad<br/><br/>REGULATION OF TRANSACTIONS IN DERIVATIVES, MONEY MARKET INSTRUMENTS, SECURITIES, ETC.<br/><br/>CHAPTER IV—GENERAL PROVISIONS<br/><br/>CHAPTER IV—PENALTIES<br/><br/>THE NEGOTIABLE INSTRUMENTS ACT, 1881<br/><br/>Introduction<br/><br/>Act 26 of 1881<br/><br/>Statement of Objects and Reasons of the Negotiable<br/><br/>Instruments (Amendment and Miscellaneous Provisions) Act, 2002<br/><br/>Negotiable Instruments<br/><br/>Definition of Negotiable Instruments<br/><br/>Salient features or essential characteristics of a Negotiable Instrument<br/><br/>Negotiable Instrument as Assets of the holder<br/><br/>Instrument v. Document<br/><br/>"Negotiable Instruments are luggage without carrier"<br/><br/>I. Promissory Note<br/><br/>Promissory Note or Receipt<br/><br/>What constitutes promissory notes<br/><br/>I.O.U.<br/><br/>Specimen of Promissory Note<br/><br/>Essentials of Promissory Note<br/><br/>(1) In writing<br/><br/>(2) An undertaking to pay<br/><br/>(3) Unconditional promise or undertaking to pay<br/><br/> Denial of borrower<br/><br/>(4) Signed by the maker<br/><br/>(5) The sum must be certain<br/><br/>(6) Money only<br/><br/>(7) Parties must be certain<br/><br/>(8) Must be stamped<br/><br/>Rebuttal of presumption of consideration Liability of the Successor under the pronote Exceptions<br/><br/>Bank Notes or Currency Notes<br/><br/>II. The Bill of Exchange (Section 5)<br/><br/>Definition<br/><br/>Specimen of Bill of Exchange<br/><br/>Parties to Bill of Exchange<br/><br/>Essentials of Bill of Exchange<br/><br/>Drawee must be certain<br/><br/>Payee must be certain<br/><br/>Fictitious or non-existing payee<br/><br/>Bearer bill payable on demand<br/><br/>Of Bills in Sets<br/><br/>Five certainties of a bill of exchange<br/><br/>Difference between Promissory note and Bill of Exchange<br/><br/>III. Cheque<br/><br/>Definition<br/><br/>Definition According to English Law<br/><br/>All Cheques are bills but all bills are not cheques<br/><br/>Specimen of Cheque<br/><br/>Essential feature of a cheque<br/><br/>Parties to a cheque<br/><br/>Cheque in foreign currencies<br/><br/>Difference between Cheques and Bills of Exchange<br/><br/>Difference between cheque and Promissory Notes<br/><br/>Kinds of Negotiable Instruments<br/><br/>(1) Inland and Foreign Instruments<br/><br/>Inland Instruments (Section 11)<br/><br/>Foreign instruments (Section 12)<br/><br/>(2) Ambiguous and Clean Instruments (Section 17)<br/><br/>(3) Bearer or order instruments (Section 13)<br/><br/>Payable to order<br/><br/>Payable to bearer<br/><br/>Once a bearer always a bearer<br/><br/>Exception<br/><br/>(4) Inchoate Instrument (Section 20)<br/><br/>Is Filling of inchoate instrument a material alteration?<br/><br/>(5) Time and demand instrument<br/><br/>Demand instruments<br/><br/>‘At sight’, On presentment, "After sight"<br/><br/>Instrument payable on demand<br/><br/>(6) Open Cheques and Crossed Cheques<br/><br/>Digital Cheques (Inserted by Amendment 2002)<br/><br/>Truncated cheque [(Section 6(b)]<br/><br/>"Cheques in electronic form" [Section 6(a)]<br/><br/>Electronic Cheque "Golden Cheques"<br/><br/>Validity of Cheques<br/><br/>"Stale Cheque"<br/><br/>Antedated and Postdated cheques<br/><br/>Antedated cheque<br/><br/>Postdated cheque<br/><br/>Postdated Cheque and Cheating<br/><br/>Clone Cheque and Fraud<br/><br/>‘Stop Payment’ of Postdated Cheque<br/><br/>Maturity of the Instrument<br/><br/>Importance of maturity<br/><br/>Maturity the meaning (Section 22)<br/><br/>Instrument payable on demand<br/><br/>"At sight", "on presentment" and "on demand"<br/><br/>"After Sight", after date"<br/><br/>Instrument payable on demand (Section 19)<br/><br/>Maturity of "time" or "usance" instruments<br/><br/>Usance Bill<br/><br/>Rules of Maturity of Usance bill<br/><br/>Days of Grace<br/><br/>English law<br/><br/>Essentiality of days of Grace<br/><br/>Calculation of Maturity<br/><br/>(1) Bill and note payable many months after date or sight : Usance (Section 23)<br/><br/>(2) Bill and note payable many days after date or sight<br/><br/>"Next preceding business day"<br/><br/>For example<br/><br/>What are Negotiable Instruments?<br/><br/>Quasi-Negotiable Instruments<br/><br/>English Law<br/><br/>Bill of Lading or Airway Bill<br/><br/>Railway Receipt (R/R)<br/><br/>Share Certificate<br/><br/>Share Warrant<br/><br/>Dividend Warrant<br/><br/>Treasury bill or note<br/><br/>Share and debentures<br/><br/>Fixed Deposit Receipt<br/><br/>Letter of Credit<br/><br/>Government Promissory Notes<br/><br/>Postal orders and Money orders<br/><br/>Traveller’s Cheque<br/><br/>"Liability of the paying banker"<br/><br/>Life Insurance Policy<br/><br/>Currency Notes<br/><br/>Hundi<br/><br/>Banker’s Drafts/Demand Drafts<br/><br/>Is Banker’s Draft a Negotiable Instrument?<br/><br/>Is Banker’s Draft a Cheque?<br/><br/>Countermanding (stop payment of draft)<br/><br/>Issue Duplicate Draft<br/><br/>Payment of Bank Draft<br/><br/>A. Parties to Instrument<br/><br/>B. Capacity to Parties<br/><br/>Minor<br/><br/>Position of Minor<br/><br/>Agency<br/><br/>Express Agency<br/><br/>Parties to Instruments<br/><br/>Maker and Drawer<br/><br/>Drawer and Drawee in case of need<br/><br/>Drawee<br/><br/>Acceptor and Acceptor for honour<br/><br/>Acceptor for honour<br/><br/>Payee<br/><br/>Fictitious name as act of forgery<br/><br/>Holder and Holder in due Course<br/><br/>Conditions for holder<br/><br/>A thief and finder cannot be holder<br/><br/>De jure holder<br/><br/>Right of holder<br/><br/>Holder in due course<br/><br/>Conditions for holder in due course<br/><br/>(1) and (2) Possessor, payee or endorsee<br/><br/>Whether original payee can be a holder in due course<br/><br/>Indian Position<br/><br/>(3) Consideration<br/><br/>(4) Before maturity<br/><br/>Exception : Accommodation bill<br/><br/>Demand Instruments<br/><br/>Cheque payable on demand<br/><br/>(5) Without notice and good faith Due care and caution<br/><br/>Irregular Endorsement negates holder in due course<br/><br/>"Good faith"<br/><br/>"Due Care and Caution" as Test of Good Faith<br/><br/>Rule of gross negligence<br/><br/>Rules of Honesty<br/><br/>Modem law (Rules of Honesty)<br/><br/>"Holder for Value"<br/><br/>Presumption of "Holder in Due Course"<br/><br/>Privileges of a Holder in due course<br/><br/>Difference between Holder and Holder in due course<br/><br/>Rights of Holder<br/><br/>Privileges of a Holder in Due Course<br/><br/>(C) Liability of the Parties of the Instruments Liability of drawer of bill and cheque (Section 30)<br/><br/>Liability of maker of the note acceptor of the bill<br/><br/>Liability of the maker of note (Section 32)<br/><br/>Liability of the acceptor of the bill (Section 32)<br/><br/>(1) Acceptor bound, although endorsement forged (Section 41)<br/><br/>(2) Acceptance of a bill drawn in fictitious name (Section 42)<br/><br/>(3) Acceptor or endorser bound notwithstanding previous alteration (Section 88)<br/><br/>Liability of drawee of cheques (Section 31)<br/><br/>Liability of the drawee of the bill<br/><br/>Who can accept<br/><br/>Position of drawee in case of need after acceptance<br/><br/>Holder and Holder in due course<br/><br/>Liability of Endorser and Endorsee<br/><br/>(D) Discharge from liability on Notes, Bills and Cheques<br/><br/>Discharge from liability<br/><br/>(I) Discharge of the Instrument<br/><br/>(1) By cancellation<br/><br/>(2) By Release [Section 82(b)]<br/><br/>(3) By payment<br/><br/>Payment in due course<br/><br/>(i) Apparent tenor<br/><br/>Re-issuing of the bill<br/><br/>(ii) Payment in good faith<br/><br/>(iii) Without negligence<br/><br/>(iv) and (v) To any person in possession and to any person who is entitled to receive payment.<br/><br/>To whom payment should be made<br/><br/>Order instrument<br/><br/>Forged endorsement<br/><br/>(4) By acceptor becoming holder of the bill (Section 90)<br/><br/>(5) Where cheque not duly presented and drawer damaged thereby (Section 84)<br/><br/>(II) Discharge of some parties<br/><br/>(1) Cancellation of endorser’s liability [Section 82(a)]<br/><br/>(2) By Release of endorser’s liability [Section 82(b)]<br/><br/>(3» By allowing drawee more than 48 hours for acceptance (Section 83)<br/><br/>4 By qualified acceptance (Section 86)<br/><br/>Examples of qualified acceptance<br/><br/>(5) For non-presentment for acceptance of a bill of exchange. (S. 61)<br/><br/>(6) By Material Alteration (Sections 87, 88 and 89)<br/><br/>(i) Intentional alteration<br/><br/>(ii) Alteration must be material<br/><br/>English Law<br/><br/>Examples of material alteration<br/><br/>(iii) Alteration to carry-out the intention of original parties<br/><br/>(iv) Alteration not apparent<br/><br/>Promissory note is not required to be filled up by the maker himself<br/><br/>Extinction of debt (Suit on consideration)<br/><br/>As to truncated cheques<br/><br/>Alteration by a stranger<br/><br/>Alteration which does not affect validity of the instruments<br/><br/>Is Revalidating of Cheque Material Alteration?<br/><br/>Is completion of inchoate cheque material alteration?<br/><br/>Acceptor or endorser bound notwithstanding previous alteration (Section 88)<br/><br/>Effect of Material Alteration (Section 87)<br/><br/>Chapter XVI<br/><br/>Negotiation<br/><br/>Difference between "Transfer" and "Negotiation" "Negotiation"<br/><br/>"Negotiation" and "assignment" distinguished<br/><br/>(1) As to title<br/><br/>(2) Presumption of Consideration<br/><br/>(3) Mode of transfer<br/><br/>(4) Notice of transfer<br/><br/>(5) No stamping<br/><br/>Modes of Negotiation<br/><br/>How Negotiation is made?<br/><br/>A thief or finder cannot be holder<br/><br/>Delivery of the Instrument<br/><br/>Exception<br/><br/>(1) Negotiation by Delivery (Section 47)<br/><br/>Exception<br/><br/>(2) Negotiation by endorsements (Section 48)<br/><br/>Limitations of Sections 47 and 48<br/><br/>Application of Section 58 to Sections 47 and 48<br/><br/>(i) Negotiation (endorsement) of lost instrument<br/><br/>(ii) Instrument obtained by means of an offence<br/><br/>(a) By an offence i.e., by theft<br/><br/>(b) and (c) by fraud and unlawful consideration<br/><br/>Endorsement<br/><br/>1. Definition and Essential features<br/><br/>Place of endorsement<br/><br/>Essential features of Endorsement<br/><br/>Who can endorse<br/><br/>Minor as endorser<br/><br/>2. Kinds of Endorsement<br/><br/>(A) Blank or Full Endorsement<br/><br/>Blank Endorsement<br/><br/>Effects of Blank endorsement<br/><br/>(1) Conversion of order instrument into bearer instrument<br/><br/>(2) Negotiation by delivery<br/><br/>(3) Conversion into full (Section 49)<br/><br/>Full Endorsement<br/><br/>(B) Restrictive or Conditional Endorsement<br/><br/>Restrictive Endorsement (Section 50)<br/><br/>Conditional Endorsement (Section 52)<br/><br/>Conditional endorsement and conditional delivery<br/><br/>Some Examples of conditional endorsement<br/><br/>(C) Whole or Partial Endorsement (Section 56)<br/><br/>(D) Facultative Endorsement<br/><br/>3. General Principles of Endorsement, or Conditions to a valid Endorsement, or Rules of Endorsement.<br/><br/>Other Forms of Endorsements<br/><br/>Effects of Endorsement<br/><br/>Duration of Negotiability (Section 60)<br/><br/>Payment before maturity<br/><br/>Chapter XVII<br/><br/>Presentment<br/><br/>What is presentment<br/><br/>Kinds of Presentment<br/><br/>(1) Presentment for Acceptance (Section 61)<br/><br/>(a) To whom presented and by whom accepted<br/><br/>(b) Time and place of acceptance<br/><br/>(c) Presentment through post-office<br/><br/>(d) Within reasonable time<br/><br/>When presentment for acceptance is necessary<br/><br/>Purpose of presentment of acceptance<br/><br/>When presentment for acceptance is not necessary<br/><br/>Effects of non-presentment of acceptance<br/><br/>(2) Presentment of promissory note for sight (Section 62)<br/><br/>(3) Presentment for payment<br/><br/>Instrument Payable on demand (Section 74)<br/><br/>Instrument payable after date or sight (Section 66)<br/><br/>Presentment for payment of promissory note payable by instalments (Section 67)<br/><br/>Rules as to presentment of payment<br/><br/>(a) Place of Presentment<br/><br/>(b) Hours of Presentment<br/><br/>(c) Within reasonable time Excuse of delay<br/><br/>(d) To whom presentment for acceptance be made<br/><br/>(4) Presentment of cheque in order to charge the drawee<br/><br/>Bank<br/><br/> Presentment of cheque for payment<br/><br/>Presentment of Truncated Cheque [(Section 64(2)]<br/><br/>Waiver of presentment [Section 76(c)]<br/><br/>Effects and consequences of non-presentment<br/><br/>Dishonour and Notice thereof<br/><br/>(A) Dishonour by Non-Acceptance (Section 91)<br/><br/>(B) Dishonour by Non-Payment Notice of dishonour<br/><br/>By and to whom notice should be given (Section 93)<br/><br/>Mode in which notice may be given (Section 94)<br/><br/>Party receiving must transmit notice of dishonour (Section 95)<br/><br/>Agent for presentment (Section 96)<br/><br/>When party to whom notice is given is dead (Section 97)<br/><br/>When notice of dishonour is unnecessary (Section 98)<br/><br/>Of Noting and Protest<br/><br/>Noting (Section 99)<br/><br/>Protest (Section 100)<br/><br/>Contents of protest (Section 101)<br/><br/>Notice of protest (Section 102)<br/><br/>Protest for non-payment after dishonour by non-acceptance (Section 103)<br/><br/>Protest of foreign bills (Section 104)<br/><br/>When noting equivalent to protest (Section 104-A)<br/><br/>Of Reasonable Time<br/><br/>Reasonable time (Section 105)<br/><br/>Reasonable time of giving notice of dishonour (Section 106)<br/><br/>Reasonable time for transmitting such notice (Section 107)<br/><br/>Of Payment and Interest<br/><br/>To whom payment should be made (Section 78)<br/><br/>Interest when rate specified (Section 79)<br/><br/>Interest when no rate specified (Section 80)<br/><br/>Of Compensation<br/><br/>Rules as to compensation (Section 117)<br/><br/>Special rules of Evidence<br/><br/>Presumptions as to negotiable instruments of consideration (Section 118)<br/><br/>Presumption on proof of protest (Section 119)<br/><br/>Estoppel against denying original validity of instrument (Section 120)<br/><br/>Estoppel against denying capacity of payee to indorse (Sec. 121)<br/><br/>Estoppel against denying signature or capacity of prior party (Section 122)<br/><br/>Chapter XVIII<br/><br/>Crossing of Cheques<br/><br/>Legal Recognition of Crossing<br/><br/>Object of the Crossing : Why crossing?<br/><br/>What is Crossing<br/><br/>Kinds and modes of crossing<br/><br/>(A) General Crossing (Section 123)<br/><br/>Essential of general crossing<br/><br/>(B) Special Crossing (Section 124)<br/><br/>Essentials of special crossing<br/><br/>(1) as to name of a Specific Bank<br/><br/>(2) As to drawing of parallel lines<br/><br/>(3) As to payment<br/><br/>Effects of Crossing<br/><br/>Who may Cross (Section 125)<br/><br/>(1) The following persons may cross a cheque<br/><br/>(2) Crossing of Cheques after issue Payment of Crossed Cheques<br/><br/>(a) Payment of generally crossed cheques<br/><br/>To a Banker : Collecting Banker<br/><br/>(b) Payment of specially crossed cheques<br/><br/>To a Specified Banker : Collecting Banker<br/><br/>(c) Payment in due course of crossed cheque<br/><br/>(d) Payment out of the due course of crossed cheques (Sec. 129)<br/><br/>"Not Negotiable’ Crossing Section 130)<br/><br/>Effects of ’not negotiable" crossed cheque<br/><br/>"Account Payee' or "Account Payee only" crossing<br/><br/>Examples of Account Payee Crossing<br/><br/>Directions of the Reserve Bank of regarding Account Payee cheque<br/><br/>Opening of Crossing (Cancellation of Crossing)<br/><br/>Precautions by paying Banker<br/><br/>Obliteration or erasing of crossing<br/><br/>Crossing as a material part of cheque<br/><br/> Whether crossing constitutes material part of the cheque?<br/><br/>Protection of Collecting Banker (Section 131)<br/><br/> Who is Collecting Banker?<br/><br/> The essential conditions for protection<br/><br/>(1) For a customer<br/><br/>(2) For Crossed Cheques<br/><br/>(3) As agent<br/><br/>(4) Good faith and without negligence<br/><br/>Marking of Cheques<br/><br/>PART IV<br/><br/>Chapter XIX<br/><br/>Law of Dishonour of Cheques<br/><br/>Ss. 138 to 142 by Act of 1988 : Ss. 143 to 147 by Act of 2002<br/><br/>Statutory Provisions<br/><br/>Aims and objects of the Chapter<br/><br/> Regulatory Offence<br/><br/> Cheque as speedy vehicle of commerce<br/><br/> Object of Ss. 143 to 147<br/><br/>Justified Dishonour : When Banker may Dishonour the Cheques?<br/><br/>Answers in Case of Dishonoured Cheques<br/><br/>Dishonour of Cheques : A New Era<br/><br/>Cheque Bouncers Beware<br/><br/>Nature of Dishonour of Cheques (S. 138)<br/><br/>Who is Liable for Dishonour of Cheques :<br/><br/>Application of Doctrine of Double Jeopardy<br/><br/>Conditions for Constituting Offence and Prosecution<br/><br/>(A) Condition for Commission of Offence<br/><br/>1. Issuance of Cheque for Discharge of Debt or Liability<br/><br/>Debt or Other Liability<br/><br/>Presumption of Debt or Liability : S. 139<br/><br/>No mens rea<br/><br/>"Denial of Consideration" : No proof of Debt or Liability<br/><br/>Purpose behind presumption<br/><br/>2. Presentment of Cheque for Payment [Section 138(a)]<br/><br/>Presentment at drawee bank<br/><br/>Public Holiday is to be excluded<br/><br/>Successive Presentment of Cheques<br/><br/>Successive presentment even after giving notice under<br/><br/>Section 138(b)<br/><br/>Presentment and Depositing of Cheque<br/><br/>Tips for Safe Deposit of Cheques<br/><br/>Revalidation of a Stale Cheque<br/><br/>3. Cheque is returned unpaid by the Bank<br/><br/>‘Stop Payment’ or ‘Account Closed’<br/><br/>Deemed Dishonour<br/><br/>"Stop payment" of post dated cheque<br/><br/>‘Account Blocked’<br/><br/>Drawer’s Notice not to Present Cheque<br/><br/>Cheque drawn on a closed account<br/><br/>4. Notice of Demand for payment [Section 138(b)]<br/><br/>(i) Notice in Writing<br/><br/>Separate notice to each director not required<br/><br/>Mode of Notice<br/><br/>Presumption of Service of Notice : Deemed service of notice<br/><br/>No deemed service of notice<br/><br/>(ii) By the Payee or Holder in Due Course<br/><br/>Sole Proprietor as a payee/holder in due course<br/><br/>(iii) Demand for Payment<br/><br/>(iv) Notice within Statutory Period of 30 days : Sec. 138(c)<br/><br/>To whom notice is to be sent<br/><br/>As Protection to drawer<br/><br/>Cause of Action : When arises<br/><br/>Cognizance<br/><br/>(B) Conditions for taking Cognizance of Offence<br/><br/>(1) Upon a complaint : complaint case<br/><br/>Who can be Complainant<br/><br/>Complaint by holder of Power of Attorney<br/><br/>Complaint Sans (without Signature<br/><br/>Purchaser of cheque<br/><br/>Cheque drawn an a joint account<br/><br/>Endorsee far coflectaon of a cheque<br/><br/>(2) Complaint within statutory period<br/><br/>Directions<br/><br/>Premature Complaint : Before cause of Action arises<br/><br/>No complaint no cognizance : See above.<br/><br/>New law on Premature complaint<br/><br/>Premature Complaint under Section 142<br/><br/>Calculation of statutory period<br/><br/>A Controversy Resolved: As to Calculation of statutory period<br/><br/>A Controversy Resolved<br/><br/>Condonation of Delay<br/><br/>Condonation of Delay : No Retrospective effect<br/><br/>Clubomr of cases of dishonour<br/><br/>(3) By a Metropolitan Magistrate, or Magistrate of the First Class<br/><br/>Offence by Companies<br/><br/>Company as a Drawer<br/><br/>Section 141 is a Deeming Provision<br/><br/>Company’s prosecution sine qua non<br/><br/>Company must be arrayed as Principal Offender<br/><br/>Averment of in-charge of and responsible to the conduct of company—Necessary<br/><br/>At the time of commission of offence<br/><br/>Vicarious Liability<br/><br/>Constructive liability<br/><br/>Cheque drawn in personal capacity by the Managing Director<br/><br/>Defences by Officers of the Company<br/><br/>1. Without Knowledge<br/><br/>2. Exercise of due diligence<br/><br/>3. Nominated Directors<br/><br/>4. Resigned from directorship<br/><br/>5. Not duly charge<br/><br/>Jurisdiction of Court to try Cases<br/><br/>Jurisdiction : New Principle established<br/><br/>Place of presentation of cheque does not confer jurisdiction<br/><br/>Time limit to conclude trial<br/><br/>Complaint supported by sworn affidavit<br/><br/>Evidence on Affidavit : S. 145<br/><br/>Non obstante Clause<br/><br/>Summary Trial<br/><br/>Procedure for summary trials<br/><br/>Judgment in cases tried summarily<br/><br/>Compounding of offences : [Section 147]<br/><br/>Relation of S. 147 of N.I. Act and S. 320 of Cr.P.C.<br/><br/>Compounding at appellate stage<br/><br/>Guidelines for compounding of offences<br/><br/>Exception : Where Dishonour of Cheque no Offence<br/><br/>1. Dishonour of cheques other than insufficient fund<br/><br/>2. Without consideration<br/><br/>3. No debt or liability<br/><br/>4. Cheques are given as security or guarantee Cheque issued qua security<br/><br/>Liability of indeminifier<br/><br/>5. In case of compounding<br/><br/>6. Non-compliance of conditions of dishonour<br/><br/>7. Non-compliance of conditions of prosecution.<br/><br/>Section 482 of Cr.P.C. and quashing of complaints<br/><br/>Quashing of Proceedings under Section 138<br/><br/>Quashing of proceedings under Section 138 read with S. 141<br/><br/>Punishment and award of sentence<br/><br/>Award of sentence<br/><br/>Award of Compensation to the Complainant<br/><br/>Constructive approach<br/><br/>Running of sentence: Whether Concurrent or Consecutively<br/><br/>"Fast track Courts to be established<br/><br/>Object of N.I. Act defeated<br/><br/>Banks Generally used abbreviations<br/><br/>Chapter XX<br/><br/>Banking Services and Consumer Law<br/><br/>Object of Consumer Protection Act<br/><br/>Object of the Act Strengthened<br/><br/>Sections 138 and 142 are constitutional<br/><br/>Petitioner’s argument<br/><br/>‘Fallen on bad times’<br/><br/>Scope and Extent of the Act<br/><br/>(1) Additional Remedy—‘No Bar’<br/><br/>(2) Supplementary Remedy<br/><br/>(3) Alternative Remedy—‘No Bar’<br/><br/>Legislative Competence of Parliament<br/><br/>Arbitration Clause<br/><br/>Interpretation in Favour of Complainant (Consumer)<br/><br/>‘Any Other Law’ for the Time Being in Force<br/><br/>Railway Claims Tribunal Act, 1987<br/><br/>Employees’ State Insurance Act, 1948<br/><br/>Construing the Provisions of the Act<br/><br/>Limitation of the Act<br/><br/>Option of Relief<br/><br/>Banking Services<br/><br/>As to cheques<br/><br/>Duty to honour cheques<br/><br/>Collection of cheques, etc.<br/><br/>Payment of cheque despite stop notice<br/><br/>Duty to inform customer if cheque returned<br/><br/>Loss of cheque delivered for collection<br/><br/>Dishonour of Cheque<br/><br/>Dishonour of cheque without justification amounts to deficiency in services<br/><br/>Dishonour of Bank Draft<br/><br/>Defective bank draft<br/><br/>Delay in issuing duplicate bank draft<br/><br/>Locker<br/><br/>Complication about locker<br/><br/>Encashment of bank guarantee and letter of credit<br/><br/>Over Draft Facility<br/><br/>Credit Card<br/><br/>Suppressing letters of credit<br/><br/>Cancellation of credit card<br/><br/>Fixed deposit service<br/><br/>Claims of Interest<br/><br/>Bank’s service charges<br/><br/>MICR Cheques (Magnetic Ink Character Recognition)<br/><br/>Operation of deceased account<br/><br/>Realisation of security<br/><br/>Withdrawal without Pass Book<br/><br/>Payment Despite Stop Payment<br/><br/>Complex question of law and fact<br/><br/>rorum is Competent to Decide Complex Cases<br/><br/>No Abuse of the Process<br/><br/>WHO CAN FILE A COMPLAINT?<br/><br/>APPEALS<br/><br/>Liability of Bank for damages<br/><br/>Need guidelines for speedy Justice : 38 Lakhs cheque bouncing cases are pending across the country<br/><br/>Annexure<br/><br/>Banking Terminology<br/><br/>Adhar Rate<br/><br/>ACH<br/><br/>Accommodation Endorsement<br/><br/>Account<br/><br/>Account Activity<br/><br/>Account Analysis<br/><br/>Account Closing<br/><br/>Account Introduction<br/><br/>Account History<br/><br/>Account Payee<br/><br/>Accrued interest<br/><br/>ARC<br/><br/>Annuity<br/><br/>Available Balance<br/><br/>Axis<br/><br/>Average Daily Balance<br/><br/>Bad Debt Recovery<br/><br/>Bad Debts Ratio<br/><br/>Bailee<br/><br/>Bn<br/><br/>Balance of Account<br/><br/>Balance Owing<br/><br/>Bank Balance<br/><br/>Bank Charges<br/><br/>Bank Debits<br/><br/>Bank Draft<br/><br/>Bank Rate 6%<br/><br/>Bank Statement<br/><br/>Banking Credit<br/><br/>Bankrupt<br/><br/>Bill of Exchange (BOE)<br/><br/>Bond Rating<br/><br/>Bridge Loan<br/><br/>C.<br/><br/>Cash Reserve Ratio (CRR) 4%<br/><br/>CBS<br/><br/>Cheque<br/><br/>Cheque, Ante-dated<br/><br/>Cheque, Bearer<br/><br/>Cheque, Crossed<br/><br/>CTS<br/><br/>Cheque, Open<br/><br/>CAGR<br/><br/>Coupon<br/><br/>CDR<br/><br/>Credit Deposit Ratio (CDR)<br/><br/>Credit Risk<br/><br/>Current Account<br/><br/>Current Yield<br/><br/>CPR<br/><br/>Debit<br/><br/>Debit Card<br/><br/>Demand Deposit<br/><br/>Demand Loan<br/><br/>Deposits<br/><br/>Deposit Insurance And Credit Guarantee Corporation (DI & CGS)<br/><br/>Donee<br/><br/>DRT<br/><br/>Down Payment<br/><br/>Dwelling Unit<br/><br/>Electronic Banking<br/><br/>Electronic Clearing<br/><br/>Easy Money<br/><br/>EWS<br/><br/>Facsimile<br/><br/>Fixed Deposit Account<br/><br/>Fy<br/><br/>F.S.D.C.<br/><br/>FED<br/><br/>Foreign Currency<br/><br/>Foreign Trade<br/><br/>Forgery<br/><br/>Future Value<br/><br/>GCF<br/><br/>GDP<br/><br/>GNPA<br/><br/>IFSC<br/><br/>Interest on 360 day a year basis<br/><br/>Interest on calendar year basis<br/><br/>Internet banking<br/><br/>INBK<br/><br/>IRDA<br/><br/>Indian Bank Association (IBA)<br/><br/>MICR (Cheques)<br/><br/>Monetary Policy<br/><br/>Mortgage<br/><br/>MFIs<br/><br/>MFO<br/><br/>MSS<br/><br/>NABARD<br/><br/>N.C.C.<br/><br/>Mumbai Interbank Offered Rate (MIBOR)<br/><br/>Nationalised Banks<br/><br/>NBFCs<br/><br/>NFS<br/><br/>NEFT<br/><br/>NECS<br/><br/>NPCI<br/><br/>Nomination<br/><br/>Non-resident Accounts<br/><br/>Non-resident (External) Account<br/><br/>Non-resident (Foreign Currency) Accounts<br/><br/>Non-resident and Non-repatriable Account (NRNR)<br/><br/>NNPA<br/><br/>NPA<br/><br/>Non-Performing Account (NPA)<br/><br/>Nostro Account<br/><br/>One Time Settlement Scheme (O.T.S.)<br/><br/>Opening A Crossing<br/><br/>Order Cheque<br/><br/>Overdraft<br/><br/>p.a.<br/><br/>Pay Order<br/><br/>Pay-in-slip<br/><br/>Payment Stopped<br/><br/>Personal Loans<br/><br/>Private Banks<br/><br/>Probate<br/><br/>Promissory Note<br/><br/>PSU<br/><br/>Recurring Deposit Or Cumulative Deposit Account<br/><br/>Refer to Drawer<br/><br/>Relationship Banking<br/><br/>Repo Rate<br/><br/>Reverse Rate<br/><br/>Saving Deposit Account<br/><br/>SR<br/><br/>Standing Instructions<br/><br/>RTGS<br/><br/>CTS-2010 standard cheques<br/><br/>Stop Payment<br/><br/>SA<br/><br/>Term Deposit<br/><br/>Token<br/><br/>W3C |
