MI4504 Banking Theory and Practices Syllabus:
MI4504 Banking Theory and Practices Syllabus – Anna University PG Syllabus Regulation 2021
COURSE OBJECTIVES:
The course aims at imparting knowledge about the Banking Operations among the students
Students will get exposure for banking operations
Students will be exposed to various dimensions of day to day operations.
UNIT I BANKING AN OVERVIEW
Origin and development of banking in India- Functions of Banks-Credit creation-Techniques of Credit creation and its limitations –Commercial banks – role in the Indian money market -Reserve bank of India- Functions-Monetary policy-Instrument of Credit control operation–relation to cooperative banks and credit institutions.
UNIT II OPERATIONS OF BANK ACCOUNTS
Types of Bank Accounts – fixed deposits – Fixed deposit receipts and its implications, savings deposit accounts – current Accounts – recurring deposit Accounts – new deposit savings schemes introduced by banks – super savings package – cash certificate, annuity deposit – reinvestment plans – perennial premium plan – Non-resident (external) accounts scheme-Demat account.
UNIT III BANKER AND CUSTOMER RELATIONSHIP
Definition of Banker-Customer-General relationship-Bankers lien-Secrecy of customer Account, banker as borrowers-Opening, conducting and closing of accounts of special types of customer Minor- Lunatic-Drunkard-Married Woman-Trustee-Partnership-Joint stock companies.
UNIT IV METHODS OF PAYMENT AND COLLECTION
Cheque-Requisites of cheque-crossing of cheque- types of crossing-Different kinds of crossing and their significance.-Duties and responsibilities of the paying banker-Endorsement-Kinds of endorsement-Statutory protection to the banker and paying banker-Payment in due course. Collection of cheque- Duties and responsibilities of collecting banker- precautions, statutory protection to the collecting banker-Pass book- Effect of entries in the pass book. Loans and advances- Forms of advance, Cash credit-Over draft- Principles of lending-Modes of creating
charge, Lien, Pledge, Hypothecation, Mortgage.
UNIT- V ELECTRONIC BANKING AND ELECTRONIC FUND TRANSFER
E-banking-internet banking services-mobile banking-ATM-Credit cards and debit cards- MICR cheques- Features, benefits and challenges. Electronic fund transfer-RBI guidelines-Benefits of electronic clearing systems-Interbank transfer- Real time gross settlement (RTGS)-National Electronic fund transfer (NEFT)-Immediate payment service (IMPS).
TOTAL : 45 PERIODS
COURSE OUTCOME:
Students would have acquired practical applications of banking aspects in real life situations and in Business Operations.
TEXT BOOKS:
1. Banking Theory, Law& Practice – Sundaram and Varshney, Sultan Chand Company, New Delhi.
2. Banking Law, Theory and Practice- S.N. Maheswari, Kalyani Publications, 2009.
3 Banking Law and Practice, (Fourth RevisedEdition) K.P. Kandasami,R.
Parameswaran,S. Natarajan, Sultan Chand Company, NewDelhi, 2013.
4. Banking Theory and Practice, 21/e,K C Shekhar & Lekshmy Shekhar, Vikas Publishing