Course

Unit 1

Concept and Evolution of Banking

Banking: Definition – Features – History – Banking Systems – Types – Functions of Commercial Banks: Primary and Secondary Functions – Role of Commercial Banks in Economic Development – Reserve Bank of India (RBI) – Objectives – Functions – World Bank.

Unit 2

Banking Operations

Types of Bank Accounts: Savings Bank Account, Current Account, Fixed Deposit Account – Non- resident Indian Account –The opening procedure of savings account – Know Your Customer (KYC) norms – Special Types of customers and precautions to be taken by bankers while opening an account: Minor, Married Women, Joint Account, Partnership Firm, Joint stock companies, Non- trading associations – Banker Customer Relationship: General Relationship and Special Relationship – Rights and obligations of Banker – Garnishee order.

Unit 3

Negotiable Instruments Act

Negotiable Instrument: Meaning – Definition – Features –Parties to Negotiable Instruments – Types of Negotiable Instruments – Promissory Notes – Definition, Features, Parties – Bills of Exchange – Definition, Features, Parties – Cheques – Definition, Features, Parties – Dishonour and wrongful Dishonour of Cheques – Crossing of Cheques – Endorsement – Negotiation– Presentment – Discharge – Dishonour of Negotiable Instruments.

Unit 4

Electronic Banking

Electronic Banking: Meaning, Services, Benefits – Riskin E-banking – Automated Teller Machine (ATM) Services, Benefits, Disadvantages – Electronic Clearing Service (ECS) – Electronic Funds Transfer (EFT) – Electronic Cheques – Credit Card – Debit Card – Smart Card – Core Banking Solutions – MICR.

Unit 5

Risk Management and Introduction to Insurance

Concept of Risk: Meaning, Nature, Importance, Causes – Types of Risks – Methods of Handling Risks – Introduction to Insurance: Features, Benefits, Functions, Principles – classification of Insurance: from business point of view – Life Insurance, General Insurance and Social insurance – from risk point of view – Property Insurance, Marine, Fire and Miscellaneous Insurance, Liability Insurance, Other forms: Personal insurance, Property Insurance and Guarantee Insurance.

Course Objective: To provide students with a comprehensive understanding of the fundamental principles, practices and regulations governing the banking and insurance industries.

Course Outcomes:

The students will be able:

CO1: To gain an insight into the development of banks and their functions.

CO2: To attain a comprehensive understanding of the operations of banks and their rights and obligations.

CO3: To define and classify negotiable instruments, including promissory notes, bills of exchange, and cheques, and explain their legal characteristics.

CO4: To understand the concept of electronic banking (e-banking) and its significance in modern financial services

CO5: To acquire knowledge of insurance contracts and provisions and the features of various insurance plans.

Textbook:

1. Jyotsna Sethi, Nishwan Bhatia – Elements of Banking and Insurance – Prentice Hall of India

References:

• L. Tannan – Banking Law and Practice in India – LexisNexis Publication
• N. Maheshwari, R.R. Paul – Banking: Theory, Law, and Practice – Kalyani Publishers
• C. Shekhar, Lekshmy Sekhar – Banking Theory and Practice – Vikas Publishing House