Banking Law and Practice 2026

Unit – I Introduction to Banking:
History of Banking- Provisions of Banking Regulations Act 1949 – Components of Indian
Banking – Indian Banking System-Phases of Development – Banking Structure in India – Public
Sector Banks, Private Banks, Foreign Banks, RRB, UCB, Payment Banks and Small Finance Banks –
Banking System – Branch Banking- Unit Banking – Universal Banking- Financial Inclusion.
Unit – II Central Bank and Commercial Bank
Central Banking: Definition –Need – Principles- Central Banking Vs Commercial Banking –
Functions of Central Bank – Credit Creation. Commercial Banking: Definition – Functions –

Personal Banking – Corporate Banking – Digital banking – Core Banking System (CBS) – Role of Banks
in Economic Development.
Unit – III Banking Practice Types of Accounts CASA– Types of Deposits – Opening Bank Account-
Jan Dhan Yojana – Account Statement vs Passbook vs e-statement – Banker Customer Relationship –
Special Types of Customers –KYC norms. Loans & Advances –Lending Sources- Lending Principles-
Types of Loans – classification of assets and income recognition/ provisioning
(NPA)–RepoRate&ReverseRepoRate-securitiesoflending-Factors influencing bank lending.
Unit IV Negotiable Instruments Act Negotiable Instruments – Meaning & Definition – Characteristics –
Types of negotiable instruments. Crossing of Cheques– Concept – Objectives – Types of Crossing
– – Consequences of Non-Crossing. Endorsement- Meaning-Components-Kinds of
Endorsements-Cheques payable to fictitious person Endorsement by legal representative – Negotiation
bank-Effect of endorsement-Rules regarding Endorsement. Paying banker – Banker’s duty – Dishonouring
of Cheques- Discharge by paying banks – Payments of a crossed cheque – Refusal of cheques Payment.
Duties of Collecting Banker- Statutory protection under section131-Collecting bankers’duty –RBI
instruction –Paying Banker Vs Collecting Banker- Customer Grievances-Grievance Redressal –
Banking Ombudsman.
Unit V Digital Banking Meaning- Services – e-banking and financial services- Initiatives-
Opportunities – Internet banking Vs Traditional Banking Mobile banking–Anywhere Banking-Any Time
Banking- Electronic MobileWallets.ATM–Concept-Features-Types-.Electronic money- Meaning-
Categories-Merits of e-money – National Electronic Funds transfer (NEFT), RTGS, IMPS, UPI
and Digital currency–Differences -Safety and Security in Digital Banking.