BANKING AND INSURANCE LAW
Course Content
Module 1:- Indian Banking Structure – (Lectures – 13)
Origin of Currency and Banking Industry
History, Evolution of Banking Institutions, Financial Institutions
Bank Nationalization- Reasons of bank nationalization, Bank Nationalization case
Relationship between banker and customer,Contract between banker & Customer-
Debtor-Creditor, Bailor-Bailee, Principal-Agent and Trustee-Beneficiary,
Banks duty to customers, Bank’s Obligation to maintain Secrecy-
Types of Accounts
Technological Transformation in Banking, Recent Trends in Banking: Automatic
Teller Machine and Internet Banking, Mobile Banking, Smart Cards, Credit
Cards, NEFT, RTGS, EFT.
Bank Frauds: Meaning, Nature, Modes of Committing Bank Frauds, Preventive
Measures to reduce instances of Bank Frauds,
Privacy Concerns in E-Banking
Module 2 :- Banking Regulation Laws (Lectures –5)
Reserve Bank of India Act,1934:
Establishment, Composition of Reserve Bank of India
Powers of RBI and Functions of RBI: Regulatory and Supervisory Functions
Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR)
Banking Regulation Act, 1949: Definition of Banking Activity, Banking
Company, Business’s permitted by a banking company
Requirements for licensing of banking companies
Winding up and Suspension of business of banking companies
Licensing of new Banks by RBI.
Module 3 :- Negotiable Instruments Act, 1881 (Lectures – 6)
Kinds of Negotiable Instruments: Promissory Note, Bill of Exchange, Cheque
Definition and Nature- Holder and holder in due course- Presentment and
payment- Parties- Negotiation- Assignment – Presentment – Endorsement
Liability of parties
Payment in due course
Crossing of Cheques: Object of crossing; Kinds of crossing – general, special, not-
negotiable & account payee crossing; who may cross?
Liabilities for Dishonour of Cheques: Dishonour of cheque for insufficiency etc.
of funds; cognizance of offences, Liability of Directors of a Company for
Dishonour of Cheques
Module 4 :-Lending, Securities and Recovery by Banks (Lectures – 8)
Principles of Lending
Causes for delay in recovery
Meaning of security, kinds of security- Causes of Default and Reasons for slow
Recovery
Priority Sector Lending in India (NPAs of Public Sector Banks)
Non-Performing Assets (NPA) : Conceptual Framework
RBI Guidelines on classification of Bank Advances
BASEL Norms on Risk Management in Banking Business
Recent Policy changes vis-à-vis NPAs,
Recovery of Debts due to Banks & Financial Institutions Act, 1993: Debt Recovery
Tribunal: Composition and Powers, Procedure for Recovery of Debts
Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interests Act, 2002: Meaning of Securitisation, Asset Reconstruction, Enforcement of
Security Interest, Procedure for Enforcement of Security Interest under the Act,
Functions of Central Registry of Securitisation and Asset Reconstruction and Security
Interest of India ( CERSAI)
Insolvency & Bankruptcy Code, 2016: Objectives and Composition of the Insolvency
and Bankruptcy Board, Powers and Functions of the Board.
Module 5 :-Insurance: Meaning and Nature (Lectures – 10)
Definition and Nature of Insurance
History and development of Insurance in India
Legal Framework: Insurance Act, 1938, IRDA Act 1999
Export Credit Guarantee Corporation of India Limited: Powers and Functions
Nature of Insurance Contracts: Contract of Insurance: Classification of contract of
Insurance- Nature of various Insurance Contracts: Parties there to
Principle of good faith
Duty of Disclosure: non disclosure
Misrepresentation in Insurance Contract- Premium: Definition-method of payment,
days of grace, forfeiture, return of premium, Mortality; The risk - commencement,
attachment and duration
Module 6 :- Kinds of Insurance (Lectures – 7)
Life Insurance: Meaning and Essentials
Health Insurance: Nature of Medi-claim policy and comprehensive Health Insurance
Policy
Property Insurance
Crop Insurance
Fire Insurance
Motor vehicle Insurance: Third Party Insurance: Meaning and Essentials, Award of
Compensation, Claims Tribunal
