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 143
10. The Issue Department and the Currency Chest 150
11. Monetary Policy and Credit Control 157
12. The Monetary Policy Committee 164
13. Regulating the Non-Banking Sector 171
14. Credit Information, Governance and Penalties 181

Module III

1. Who Is a Banker and Who Is a Customer 190
2. The Special Relationships: Trustee, Agent and Bailee 197
3. The Banker's Rights: Lien, Set-off and Appropriation 204
4. The Banker's Duties: To Honour, and To Keep Secrets 212
5. Garnishee Orders and the Attachment of Accounts 219
6. Special Classes of Customer 225
7. Deposit Accounts, the Passbook and Nomination 232
8. The Customer's Remedies: Ombudsman and Consumer Protection 239
9. What a Negotiable Instrument Is 246
10. Cheques, Truncated and Electronic 254
11. Holder, Holder in Due Course and the Presumptions 260
12. Negotiation, Indorsement and Liability of the Parties 268
13. Presentment, Acceptance and Payment 275
14. Discharge, Material Alteration and Dishonour 284
15. Crossing of Cheques 294
16. Protection of the Paying and Collecting Banker 301
17. Dishonour of a Cheque as an Offence 309
18. Hundis, and the Rest of the Negotiable Instruments Act 319

Module IV

1. The Principles of Sound Lending 325
2. Kinds of Lending: Cash Credit, Overdraft and Term Loans 331
3. Securities for Advances 338
4. Guarantees and Letters of Credit 345
5. The Statutory Limits on Lending, and Interest 352
6. Non-Performing Assets and the Defaulter 360
7. Recovery before the Tribunals: the Debts Recovery Tribunal 368
8. The Recovery Application and the Rest of the RDB Act 376
9. Enforcement without Court: SARFAESI 385
10. SARFAESI: Companies, Registration, Priority and the Rest 395
11. The Wider Recovery Map: Lok Adalats and the Insolvency Code 406
12. Automation and Core Banking 414
13. Electronic Banking: Internet, Mobile, ATM and Cards 420
14. Payment Systems: RTGS, NEFT, IMPS and UPI 427
15. Digital Money: the Digital Rupee and Cryptocurrency 433
16. New Institutions: Payments Banks and Small Finance Banks 440
17. Consolidation, Mergers and Ownership 446
18. Frauds and Cybersecurity in Banking 453
19. The Banking Laws (Amendment) Act 2025 460