Banking Laws Notes | LL.M. Semester 3 | Mumbai University | munotes

Contents

Module I

1. What Banking Is 1
2. How Banking Grew in India 6
3. The Structure of the Indian Banking System 12
4. What Banks Do, and the Multifunctional Bank 17
5. The Banking Regulation Act: Scheme and Application 21
6. Forms of Business and the Fences 26
7. Licensing of Banks and Branches 32
8. Capital, Management and the Limits on a Bank's Own Lending 38
9. Accounts, Audit, Returns and Inspection 45
10. The Reserve Bank's Power to Control a Bank 52
11. When a Bank Fails: Moratorium and Winding Up 59
12. Saving a Bank: Amalgamation and Reconstruction 68
13. Protecting the Depositor 75
14. Co-operative Banks under the Act 82
15. Penalties and the Rest of the Act 88

Module II

1. Social Control over Banking 95
2. Nationalisation of the Banks 100
3. Priority Sector Lending and the Lead Bank Scheme 105
4. Rural and Co-operative Credit: NABARD and the RRBs 111
5. Deposit Insurance: the DICGC 117
6. Financial Inclusion 123
7. The Reserve Bank: Establishment, Capital and Management 128
8. What the Reserve Bank Does: Its Functions 135
9. Currency and Legal Tender 142
10. The Issue Department and the Currency Chest 149
11. Monetary Policy and Credit Control 155
12. The Monetary Policy Committee 162
13. Regulating the Non-Banking Sector 169
14. Credit Information, Governance and Penalties 178

Module III

1. Who Is a Banker and Who Is a Customer 186
2. The Special Relationships: Trustee, Agent and Bailee 193
3. The Banker's Rights: Lien, Set-off and Appropriation 200
4. The Banker's Duties: To Honour, and To Keep Secrets 208
5. Garnishee Orders and the Attachment of Accounts 215
6. Special Classes of Customer 221
7. Deposit Accounts, the Passbook and Nomination 228
8. The Customer's Remedies: Ombudsman and Consumer Protection 235
9. What a Negotiable Instrument Is 241
10. Cheques, Truncated and Electronic 249
11. Holder, Holder in Due Course and the Presumptions 255
12. Negotiation, Indorsement and Liability of the Parties 263
13. Presentment, Acceptance and Payment 270
14. Discharge, Material Alteration and Dishonour 278
15. Crossing of Cheques 287
16. Protection of the Paying and Collecting Banker 294
17. Dishonour of a Cheque as an Offence 302
18. Hundis, and the Rest of the Negotiable Instruments Act 312

Module IV

1. The Principles of Sound Lending 318
2. Kinds of Lending: Cash Credit, Overdraft and Term Loans 324
3. Securities for Advances 331
4. Guarantees and Letters of Credit 338
5. The Statutory Limits on Lending, and Interest 345
6. Non-Performing Assets and the Defaulter 352
7. Recovery before the Tribunals: the Debts Recovery Tribunal 360
8. The Recovery Application and the Rest of the RDB Act 368
9. Enforcement without Court: SARFAESI 377
10. SARFAESI: Companies, Registration, Priority and the Rest 387
11. The Wider Recovery Map: Lok Adalats and the Insolvency Code 397
12. Automation and Core Banking 405
13. Electronic Banking: Internet, Mobile, ATM and Cards 411
14. Payment Systems: RTGS, NEFT, IMPS and UPI 418
15. Digital Money: the Digital Rupee and Cryptocurrency 424
16. New Institutions: Payments Banks and Small Finance Banks 431
17. Consolidation, Mergers and Ownership 437
18. Frauds and Cybersecurity in Banking 444
19. The Banking Laws (Amendment) Act 2025 451