A Textbook of Banking and Insurance
A Textbook of Banking and Insurance
ISBN 9789395245647
 Publication Date

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EBOOK (EPUB)

EBOOK (PDF)

  • Cover
  • Title Page
  • Copyright Page
  • Contents
  • Preface
  • Chapter 1 Opening Bank Accounts
    • Bank Accounts
    • Types of Accounts
      • Savings Account
      • Basic Savings Bank Account
      • Savings Bank Account with Reward Points
      • Current Account
      • Resident Foreign Currency (Domestic) Account
      • Fixed Deposit Account
    • Fixed Deposit Receipt
      • Fixed Deposits Vs Chit Funds Vs Mutual Funds
      • Reinvestment Deposit Account
      • Flexi-Deposit Account
      • Senior Citizen Deposit Account
      • Recurring Deposit Account
      • Floating Rate Deposit Account
    • Steps in Opening Accounts
      • Obtaining Letter of Introduction
      • Application Form
      • Specimen Signature
      • First Transaction
      • Issue of Cheque, Pay-in-slip, and Passbook
      • Operation of the Account by an Agent
    • Savings Account Vs. Current Account
    • Disclosure of Information
    • Banker’s Liability
    • Pay-in-Slip Book
    • ‘Donatio Mortis Causa’
    • Printed Cheque Forms—Merits
    • Passbook
      • Meaning
      • Effect of Entries
      • Legal Implications
      • Banking Practice
    • Review Questions
  • Chapter 2 Bank Customer
    • Definition
    • Bank Customer Relationship
      • Debtor and Creditor
      • Trustee and Beneficiary
      • Agent and Principal
    • Special Type of Customers
      • Minors
    • Customer Identification and KYC Norms
      • Meaning
      • Legal Compliance
      • Applicability
      • Customer Identification
      • KYC Documents for Normal Customers
      • KYC for Low Income Customers
      • Partnership Firm
      • Joint Stock Company
      • Married Woman
      • Executors and Administrators
      • Lunatics
      • Illiterate Persons
      • Trustees
      • Joint Accounts
      • Joint Hindu Family
      • Non-Trading Institutions
    • Review Questions
  • Chapter 3 Bank Lending
    • Significance of Bank Lending
    • Lending Sources
    • Bank Lending Principles
    • Forms of Lending
    • Loan Evaluation Process
    • Securities for Lending
      • Personal Security
      • Collateral Security
      • Types of Collateral Securities
    • Factors Influencing Bank Lending
    • Review Questions
  • Chapter 4 Negotiable Instruments
    • Meaning
    • Characteristics
    • Nature
    • Negotiable Instruments – Features/Similarities
    • Types
      • Cheque
      • Promissory Note
      • Bill of Exchange
      • Cheque Vs Bill of Exchange
      • Bill of Exchange Vs Promissory Note
    • Review Question
  • Chapter 5 Crossing
    • Definition
    • Objective
    • Crossing and Negotiability
    • Need for Crossing
    • Types of Crossing
      • General Crossing (Section 123)
      • Special Crossing (Section 124)
      • Not-negotiable Crossing
      • Account Payee Crossing
      • Double Special Crossing
      • Restrictive Crossing
      • Double Crossing
    • Persons Eligible to do Crossing
    • Consequence of Crossing
    • Opening of Crossing
    • Obliterating a Crossing
    • Liability of the Paying Banker
    • Marking of Cheque
      • Types of Marking
    • Review Questions
  • Chapter 6 Endorsement
    • Negotiation
    • Meaning of Endorsement
    • Definition of Endorsement
    • Components of Endorsement
    • Types
      • General or Blank Endorsement
      • In-full or Special Endorsement
      • Converted Full Endorsement
      • Partial Endorsement
      • Restrictive Endorsement
      • Conditional Endorsement
    • Cheques Payable to Fictitious or Impersonal Persons
    • Endorsement by Legal Representative
    • Intentional Cancellation of Endorsement
    • Negotiation Back
    • Effect of Endorsement
    • Duration of Endorsement
    • Quality of a Bearer Instrument
    • Rules Regarding Endorsement
    • Review Questions
  • Chapter 7 Paying Banker
    • Meaning
    • Banker’s Duty
      • Precautions by a Paying Banker
    • Dishonoring Customer’s Cheque
      • Cheque Bouncing - Consequences
      • Legal Course
      • Bankers Options
      • Proposed Changes
      • Dishonoring Cheques—Remarks
      • Dishonoring Cheques—Inappropriate Remarks
    • Discharge of Paying Banker
    • Payment in a Crossed Cheque
    • Payment of Cheque by Mistake
    • Material Alteration
      • Definition
      • Meaning
      • Non-material Alterations
      • Legal Effect
      • Burden of Proof
      • Protection to the Paying Banker
    • Statutory Protection (Section 85)
      • In case of Order Cheques
      • In the Case of Bearer Cheques
      • In the case of Crossed Cheques
    • Refusal of Cheque Payment
    • Review Questions
  • Chapter 8 Collecting Banker
    • Meaning
    • Collecting Banker’s Role
      • As Holder for Value
      • Effects
      • As an Agent
    • Statutory Protection (Section 131)
      • Conditions
    • Collecting Banker’s Duty
      • Duty to Present the Cheque
      • Duty of Due-care and Diligence
      • Duty to Serve Notice of Dishonor
      • Legal Position
    • RBI’s Instructions
      • Immediate Credit for Outstation Cheques
      • Interest for Delay
    • Collection of Bills of Exchange
    • Agent for Collection
    • Accurate Accounts
    • Paying Banker Vs Collecting Banker
    • Review Questions
  • Chapter 9 Customer Grievances, Redressal and Ombudsman
    • Customer Grievances
    • Grievances Redressal
    • Banking Ombudsman
    • Banking Ombudsman Scheme
      • Object of the Scheme
      • Suspension of the Scheme
      • Appointment
      • Territorial Jurisdiction
      • Location of Office
      • Qualification
      • Tenure
      • Remuneration
      • Staffing of the Office
      • Powers and Duties
      • Other Powers and Duties
    • Procedure for Redressal of Grievance
      • Making a Complaint
      • Calling for Information
      • Settlement of Complaint by Agreement
      • Recommendation for Settlement
      • Award by the Banking Ombudsman
      • Rejection of the Complaint
      • Procedure for Redress of Customer Grievance
    • Review Questions
  • Chapter 10 Banking Regulations Act 1949
    • Preamble
    • Applicability
    • Definitions
      • Banking
      • Banking Policy
      • Banking Branch
    • Major Provisions
      • Banking Business (Section 6)
      • Board of Management
      • Minimum Paid-up Capital and Reserves
      • Capital and Voting Rights
      • Commission, Brokerage
      • Prohibition of Charge on Unpaid Capital
      • Prohibition of Floating Charge on Assets
      • Payment of Dividend
      • Prohibition of Common Directors
      • Reserve Fund
      • Cash Reserve
      • Subsidiary Companies
      • Loans and Advances
      • Branch Licensing
      • New Place of Business
      • Maintenance of Liquid Assets
      • Assets of the Bank
      • Accounts and Balance Sheet
      • Inspection
      • Directions to Banking Companies
      • Acquisition of Undertaking
      • Winding up of Banking Companies
      • Amalgamation
      • Recent Development
    • Review Questions
  • Chapter 11 Insurance – An Overview
    • Definition
    • Basic Principles of Insurance
    • Reinsurance
    • Life Insurance
      • Meaning
      • Policies
    • General Insurance
      • Meaning
      • Types
      • Policies
      • Other Insurances
      • Liability Insurance
    • Concept of Insurance Services
    • Health Insurance
      • Meaning
      • Health Insurance Policy
      • Health Insurance Plan
      • Employer Sponsored Plans
      • Government Sponsored Plans
      • Need for Health Insurance
    • Motor Insurance
      • Meaning
      • Nature
      • Property Accident Aspect
      • Personal Accident Aspect
    • Rural Insurance
      • Meaning
      • Potential
      • Delivery Channels
    • Annuity
      • Definition
      • Features
      • Types
    • Review Questions
  • Chapter 12 Insurance – Regulatory Framework
    • The Insurance Act
    • Insurance Regulatory and Development Authority of India (IRDAI)
      • Composition
      • Duties
      • Powers and Functions
      • Constitution
      • Composition of Authority
      • Tenure of Office
      • Administrative Powers
      • Meeting of Authority
      • Grants by Central Government
      • The Fund
      • Accounts and Audit
      • Powers of Central Government
    • Insurance Advisory Committee
    • Power to Make Regulations
    • Major Amendments to Insurance Act
      • The First Schedule
      • Capital Requirements
      • Divesting Excess Shareholding
      • Conditions of Investment
      • Rural or Social Sector
      • Investigation and Inspection
    • Insurance Agents, Intermediaries and Surveyors
      • Insurance Agents
      • Issue of Licence to Intermediary
      • Surveyors
    • Review questions
  • Index
Dr. S. Gurusamy holds a doctorate in Financial Services. He specializes in the areas of financial management, financial institutions/markets/services, banking and insurance. He has over 30 years of teaching and research experience. He is former Professor and Head, Department of Commerce, University of Madras, Chennai.

A Textbook of

BANKING AND
INSURANCE

Published by

Vijay Nicole Imprints Private Limited

No. 1B, Second Main Road,

Ram Nagar South, Chennai – 600 091

Phone: + 91 - 44 - 4283 7178, 72002 58368, 97898 33533

Email: vni@vijaynicole.co.in Website: www.vijaynicole.co.in

A Textbook of Banking and Insurance

ISBN (Print): 978-93-95245-64-7

ISBN (ePub): 978-93-95245-66-1

ISBN (ePdf): 978-93-95245-67-8

Copyright © 2023, Vijay Nicole Imprints Private Limited

No part of this publication may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers and copyright holders. The program listings (if any) may be entered, stored and executed in a computer system, but they may not be reproduced for publication.

Information contained in this work has been obtained by publishers, from sources believed to be reliable. However, neither publishers nor copyright holders guarantee the accuracy or completeness of any information published herein, and neither publishers nor copyright holders shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that publishers and copyright holders are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought.

Information contained in this work has been obtained by publishers, from sources believed to be reliable. However, neither publishers nor copyright holders guarantee the accuracy or completeness of any information published herein, and neither publishers nor copyright holders shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that publishers and copyright holders are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought.

Laser typeset at: Maven Learning, Chennai - 600 091

Contents

Preface

Chapter 1Opening Bank Accounts

Bank Accounts

Types of Accounts

Savings Account

Basic Savings Bank Account

Savings Bank Account with Reward Points

Current Account

Resident Foreign Currency (Domestic) Account

Fixed Deposit Account

Fixed Deposit Receipt

Fixed Deposits Vs Chit Funds Vs Mutual Funds

Reinvestment Deposit Account

Flexi-Deposit Account

Senior Citizen Deposit Account

Recurring Deposit Account

Floating Rate Deposit Account

Steps in Opening Accounts

Obtaining Letter of Introduction

Application Form

Specimen Signature

First Transaction

Issue of Cheque, Pay-in-slip, and Passbook

Operation of the Account by an Agent

Savings Account Vs. Current Account

Disclosure of Information

Banker’s Liability

Pay-in-Slip Book

‘Donatio Mortis Causa’

Printed Cheque Forms—Merits

Passbook

Meaning

Effect of Entries

Legal Implications

Banking Practice

Review Questions

Chapter 2Bank Customer

Definition

Bank Customer Relationship

Debtor and Creditor

Trustee and Beneficiary

Agent and Principal

Special Type of Customers

Minors

Customer Identification and KYC Norms

Meaning

Legal Compliance

Applicability

Customer Identification

KYC Documents for Normal Customers

KYC for Low Income Customers

Partnership Firm

Joint Stock Company

Married Woman

Executors and Administrators

Lunatics

Illiterate Persons

Trustees

Joint Accounts

Joint Hindu Family

Non-Trading Institutions

Review Questions

Chapter 3Bank Lending

Significance of Bank Lending

Lending Sources

Bank Lending Principles

Forms of Lending

Loan Evaluation Process

Securities for Lending

Personal Security

Collateral Security

Types of Collateral Securities

Factors Influencing Bank Lending

Review Questions

Chapter 4Negotiable Instruments

Meaning

Characteristics

Nature

Negotiable Instruments – Features/Similarities

Types

Cheque

Promissory Note

Bill of Exchange

Cheque Vs Bill of Exchange

Bill of Exchange Vs Promissory Note

Review Question

Chapter 5Crossing

Definition

Objective

Crossing and Negotiability

Need for Crossing

Types of Crossing

General Crossing (Section 123)

Special Crossing (Section 124)

Not-negotiable Crossing

Account Payee Crossing

Double Special Crossing

Restrictive Crossing

Double Crossing

Persons Eligible to do Crossing

Consequence of Crossing

Opening of Crossing

Obliterating a Crossing

Liability of the Paying Banker

Marking of Cheque

Types of Marking

Review Questions

Chapter 6Endorsement

Negotiation

Meaning of Endorsement

Definition of Endorsement

Components of Endorsement

Types

General or Blank Endorsement

In-full or Special Endorsement

Converted Full Endorsement

Partial Endorsement

Restrictive Endorsement

Conditional Endorsement

Comments should not be blank
Rating
Table of contents
  • Cover
  • Title Page
  • Copyright Page
  • Contents
  • Preface
  • Chapter 1 Opening Bank Accounts
    • Bank Accounts
    • Types of Accounts
      • Savings Account
      • Basic Savings Bank Account
      • Savings Bank Account with Reward Points
      • Current Account
      • Resident Foreign Currency (Domestic) Account
      • Fixed Deposit Account
    • Fixed Deposit Receipt
      • Fixed Deposits Vs Chit Funds Vs Mutual Funds
      • Reinvestment Deposit Account
      • Flexi-Deposit Account
      • Senior Citizen Deposit Account
      • Recurring Deposit Account
      • Floating Rate Deposit Account
    • Steps in Opening Accounts
      • Obtaining Letter of Introduction
      • Application Form
      • Specimen Signature
      • First Transaction
      • Issue of Cheque, Pay-in-slip, and Passbook
      • Operation of the Account by an Agent
    • Savings Account Vs. Current Account
    • Disclosure of Information
    • Banker’s Liability
    • Pay-in-Slip Book
    • ‘Donatio Mortis Causa’
    • Printed Cheque Forms—Merits
    • Passbook
      • Meaning
      • Effect of Entries
      • Legal Implications
      • Banking Practice
    • Review Questions
  • Chapter 2 Bank Customer
    • Definition
    • Bank Customer Relationship
      • Debtor and Creditor
      • Trustee and Beneficiary
      • Agent and Principal
    • Special Type of Customers
      • Minors
    • Customer Identification and KYC Norms
      • Meaning
      • Legal Compliance
      • Applicability
      • Customer Identification
      • KYC Documents for Normal Customers
      • KYC for Low Income Customers
      • Partnership Firm
      • Joint Stock Company
      • Married Woman
      • Executors and Administrators
      • Lunatics
      • Illiterate Persons
      • Trustees
      • Joint Accounts
      • Joint Hindu Family
      • Non-Trading Institutions
    • Review Questions
  • Chapter 3 Bank Lending
    • Significance of Bank Lending
    • Lending Sources
    • Bank Lending Principles
    • Forms of Lending
    • Loan Evaluation Process
    • Securities for Lending
      • Personal Security
      • Collateral Security
      • Types of Collateral Securities
    • Factors Influencing Bank Lending
    • Review Questions
  • Chapter 4 Negotiable Instruments
    • Meaning
    • Characteristics
    • Nature
    • Negotiable Instruments – Features/Similarities
    • Types
      • Cheque
      • Promissory Note
      • Bill of Exchange
      • Cheque Vs Bill of Exchange
      • Bill of Exchange Vs Promissory Note
    • Review Question
  • Chapter 5 Crossing
    • Definition
    • Objective
    • Crossing and Negotiability
    • Need for Crossing
    • Types of Crossing
      • General Crossing (Section 123)
      • Special Crossing (Section 124)
      • Not-negotiable Crossing
      • Account Payee Crossing
      • Double Special Crossing
      • Restrictive Crossing
      • Double Crossing
    • Persons Eligible to do Crossing
    • Consequence of Crossing
    • Opening of Crossing
    • Obliterating a Crossing
    • Liability of the Paying Banker
    • Marking of Cheque
      • Types of Marking
    • Review Questions
  • Chapter 6 Endorsement
    • Negotiation
    • Meaning of Endorsement
    • Definition of Endorsement
    • Components of Endorsement
    • Types
      • General or Blank Endorsement
      • In-full or Special Endorsement
      • Converted Full Endorsement
      • Partial Endorsement
      • Restrictive Endorsement
      • Conditional Endorsement
    • Cheques Payable to Fictitious or Impersonal Persons
    • Endorsement by Legal Representative
    • Intentional Cancellation of Endorsement
    • Negotiation Back
    • Effect of Endorsement
    • Duration of Endorsement
    • Quality of a Bearer Instrument
    • Rules Regarding Endorsement
    • Review Questions
  • Chapter 7 Paying Banker
    • Meaning
    • Banker’s Duty
      • Precautions by a Paying Banker
    • Dishonoring Customer’s Cheque
      • Cheque Bouncing - Consequences
      • Legal Course
      • Bankers Options
      • Proposed Changes
      • Dishonoring Cheques—Remarks
      • Dishonoring Cheques—Inappropriate Remarks
    • Discharge of Paying Banker
    • Payment in a Crossed Cheque
    • Payment of Cheque by Mistake
    • Material Alteration
      • Definition
      • Meaning
      • Non-material Alterations
      • Legal Effect
      • Burden of Proof
      • Protection to the Paying Banker
    • Statutory Protection (Section 85)
      • In case of Order Cheques
      • In the Case of Bearer Cheques
      • In the case of Crossed Cheques
    • Refusal of Cheque Payment
    • Review Questions
  • Chapter 8 Collecting Banker
    • Meaning
    • Collecting Banker’s Role
      • As Holder for Value
      • Effects
      • As an Agent
    • Statutory Protection (Section 131)
      • Conditions
    • Collecting Banker’s Duty
      • Duty to Present the Cheque
      • Duty of Due-care and Diligence
      • Duty to Serve Notice of Dishonor
      • Legal Position
    • RBI’s Instructions
      • Immediate Credit for Outstation Cheques
      • Interest for Delay
    • Collection of Bills of Exchange
    • Agent for Collection
    • Accurate Accounts
    • Paying Banker Vs Collecting Banker
    • Review Questions
  • Chapter 9 Customer Grievances, Redressal and Ombudsman
    • Customer Grievances
    • Grievances Redressal
    • Banking Ombudsman
    • Banking Ombudsman Scheme
      • Object of the Scheme
      • Suspension of the Scheme
      • Appointment
      • Territorial Jurisdiction
      • Location of Office
      • Qualification
      • Tenure
      • Remuneration
      • Staffing of the Office
      • Powers and Duties
      • Other Powers and Duties
    • Procedure for Redressal of Grievance
      • Making a Complaint
      • Calling for Information
      • Settlement of Complaint by Agreement
      • Recommendation for Settlement
      • Award by the Banking Ombudsman
      • Rejection of the Complaint
      • Procedure for Redress of Customer Grievance
    • Review Questions
  • Chapter 10 Banking Regulations Act 1949
    • Preamble
    • Applicability
    • Definitions
      • Banking
      • Banking Policy
      • Banking Branch
    • Major Provisions
      • Banking Business (Section 6)
      • Board of Management
      • Minimum Paid-up Capital and Reserves
      • Capital and Voting Rights
      • Commission, Brokerage
      • Prohibition of Charge on Unpaid Capital
      • Prohibition of Floating Charge on Assets
      • Payment of Dividend
      • Prohibition of Common Directors
      • Reserve Fund
      • Cash Reserve
      • Subsidiary Companies
      • Loans and Advances
      • Branch Licensing
      • New Place of Business
      • Maintenance of Liquid Assets
      • Assets of the Bank
      • Accounts and Balance Sheet
      • Inspection
      • Directions to Banking Companies
      • Acquisition of Undertaking
      • Winding up of Banking Companies
      • Amalgamation
      • Recent Development
    • Review Questions
  • Chapter 11 Insurance – An Overview
    • Definition
    • Basic Principles of Insurance
    • Reinsurance
    • Life Insurance
      • Meaning
      • Policies
    • General Insurance
      • Meaning
      • Types
      • Policies
      • Other Insurances
      • Liability Insurance
    • Concept of Insurance Services
    • Health Insurance
      • Meaning
      • Health Insurance Policy
      • Health Insurance Plan
      • Employer Sponsored Plans
      • Government Sponsored Plans
      • Need for Health Insurance
    • Motor Insurance
      • Meaning
      • Nature
      • Property Accident Aspect
      • Personal Accident Aspect
    • Rural Insurance
      • Meaning
      • Potential
      • Delivery Channels
    • Annuity
      • Definition
      • Features
      • Types
    • Review Questions
  • Chapter 12 Insurance – Regulatory Framework
    • The Insurance Act
    • Insurance Regulatory and Development Authority of India (IRDAI)
      • Composition
      • Duties
      • Powers and Functions
      • Constitution
      • Composition of Authority
      • Tenure of Office
      • Administrative Powers
      • Meeting of Authority
      • Grants by Central Government
      • The Fund
      • Accounts and Audit
      • Powers of Central Government
    • Insurance Advisory Committee
    • Power to Make Regulations
    • Major Amendments to Insurance Act
      • The First Schedule
      • Capital Requirements
      • Divesting Excess Shareholding
      • Conditions of Investment
      • Rural or Social Sector
      • Investigation and Inspection
    • Insurance Agents, Intermediaries and Surveyors
      • Insurance Agents
      • Issue of Licence to Intermediary
      • Surveyors
    • Review questions
  • Index
Biographical note
Dr. S. Gurusamy holds a doctorate in Financial Services. He specializes in the areas of financial management, financial institutions/markets/services, banking and insurance. He has over 30 years of teaching and research experience. He is former Professor and Head, Department of Commerce, University of Madras, Chennai.
Excerpt

A Textbook of

BANKING AND
INSURANCE

Published by

Vijay Nicole Imprints Private Limited

No. 1B, Second Main Road,

Ram Nagar South, Chennai – 600 091

Phone: + 91 - 44 - 4283 7178, 72002 58368, 97898 33533

Email: vni@vijaynicole.co.in Website: www.vijaynicole.co.in

A Textbook of Banking and Insurance

ISBN (Print): 978-93-95245-64-7

ISBN (ePub): 978-93-95245-66-1

ISBN (ePdf): 978-93-95245-67-8

Copyright © 2023, Vijay Nicole Imprints Private Limited

No part of this publication may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers and copyright holders. The program listings (if any) may be entered, stored and executed in a computer system, but they may not be reproduced for publication.

Information contained in this work has been obtained by publishers, from sources believed to be reliable. However, neither publishers nor copyright holders guarantee the accuracy or completeness of any information published herein, and neither publishers nor copyright holders shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that publishers and copyright holders are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought.

Information contained in this work has been obtained by publishers, from sources believed to be reliable. However, neither publishers nor copyright holders guarantee the accuracy or completeness of any information published herein, and neither publishers nor copyright holders shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that publishers and copyright holders are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought.

Laser typeset at: Maven Learning, Chennai - 600 091

Contents

Preface

Chapter 1Opening Bank Accounts

Bank Accounts

Types of Accounts

Savings Account

Basic Savings Bank Account

Savings Bank Account with Reward Points

Current Account

Resident Foreign Currency (Domestic) Account

Fixed Deposit Account

Fixed Deposit Receipt

Fixed Deposits Vs Chit Funds Vs Mutual Funds

Reinvestment Deposit Account

Flexi-Deposit Account

Senior Citizen Deposit Account

Recurring Deposit Account

Floating Rate Deposit Account

Steps in Opening Accounts

Obtaining Letter of Introduction

Application Form

Specimen Signature

First Transaction

Issue of Cheque, Pay-in-slip, and Passbook

Operation of the Account by an Agent

Savings Account Vs. Current Account

Disclosure of Information

Banker’s Liability

Pay-in-Slip Book

‘Donatio Mortis Causa’

Printed Cheque Forms—Merits

Passbook

Meaning

Effect of Entries

Legal Implications

Banking Practice

Review Questions

Chapter 2Bank Customer

Definition

Bank Customer Relationship

Debtor and Creditor

Trustee and Beneficiary

Agent and Principal

Special Type of Customers

Minors

Customer Identification and KYC Norms

Meaning

Legal Compliance

Applicability

Customer Identification

KYC Documents for Normal Customers

KYC for Low Income Customers

Partnership Firm

Joint Stock Company

Married Woman

Executors and Administrators

Lunatics

Illiterate Persons

Trustees

Joint Accounts

Joint Hindu Family

Non-Trading Institutions

Review Questions

Chapter 3Bank Lending

Significance of Bank Lending

Lending Sources

Bank Lending Principles

Forms of Lending

Loan Evaluation Process

Securities for Lending

Personal Security

Collateral Security

Types of Collateral Securities

Factors Influencing Bank Lending

Review Questions

Chapter 4Negotiable Instruments

Meaning

Characteristics

Nature

Negotiable Instruments – Features/Similarities

Types

Cheque

Promissory Note

Bill of Exchange

Cheque Vs Bill of Exchange

Bill of Exchange Vs Promissory Note

Review Question

Chapter 5Crossing

Definition

Objective

Crossing and Negotiability

Need for Crossing

Types of Crossing

General Crossing (Section 123)

Special Crossing (Section 124)

Not-negotiable Crossing

Account Payee Crossing

Double Special Crossing

Restrictive Crossing

Double Crossing

Persons Eligible to do Crossing

Consequence of Crossing

Opening of Crossing

Obliterating a Crossing

Liability of the Paying Banker

Marking of Cheque

Types of Marking

Review Questions

Chapter 6Endorsement

Negotiation

Meaning of Endorsement

Definition of Endorsement

Components of Endorsement

Types

General or Blank Endorsement

In-full or Special Endorsement

Converted Full Endorsement

Partial Endorsement

Restrictive Endorsement

Conditional Endorsement

User Reviews
Comments should not be blank
Rating
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