Page 4 - DCOM208_BANKING_THEORY_AND_PRACTICE

SYLLABUS
Banking Theory and Practice

Objectives:

Students will get exposure for banking operations
Students will be exposed to various dimensions of day to day operations.
Students will have practical applications of banking aspects in real life situations

S. No. Description

1. Banks: Meaning, nature, characteristic of Indian banking system, functions of commercial banks – primary
functions; secondary functions; agency functions and general utility functions, role of banks in the development
of economy (Financial Inclusion).

2. Indian Banking System: History, Classification & Present scenario, Reserve Bank of India: role and functions,
techniques of credit control.
3. Credit creation: Meaning, process, limitation of credit creation.
4. Banker Customer Relationship: Various types of relationship, KYC norms, Special types of accounts, Mandate &
power of attorney, Banker’s Lien, Right of Set off, Garnishee Order and Attachment order.
5. Type of Deposit Account: Process of opening bank accounts, pay in slip, Cheque book, pass book, ATM cum
Debit card, Credit Card, advantages of bank account, No Frill Account, Loan and Advances: Introduction,
classification of loans, principles of good lending, loan procedure followed by banks, Evaluating consumer and
commercial loans.

6. Banking Systems: Corporate banking, Retail banking and Merchant banking, Treasury Management, Cash
management system: concept of Cash Management Services for Corporate entity.
7. Negotiable Instruments: Definition and features of Cheques, Bills of exchange, Promissory note, Holder, Holder
in due course, Paying Banker & Collecting Banker: right & liabilities, Reasons for dishonour of cheques, Crossing
of Cheques, Endorsement of a Cheque.
nd
8. Banking Sector Reforms: Liberalization of banking sector, Narsimham Committee-1 and 2 generation reforms,
st
Capital adequacy: introduction, Basel II norms (new capital adequacy frame work).
9. Non Performing Assets (NPA’s): Introduction, classification of NPAs, provisions for NPA’s, management of
NPA’s.
10. Core banking Solution, RTGS, NEFT, EFT, ALM, AML. E- banking: Introduction of e banking, E-cheques,
advantages and disadvantages of e banking, Cheque Truncation, mergers of banks, Global banking activities.