MODERN BANKING THEORY AND PRACTICE - MURALEEDHARAN, D (PHI LEARNING)
Keywords: BANKING SYSTEM IN INDIA Origin of Banks Indigenous Bankers and Moneylenders Indigenous Banks and RBI Banking Commission, 1972 and Indigenous Bankers Cooperative Banking Institutions Cooperative Credit Institutions . Urban Cooperative Banks . Regional Rural Banks . Development of RRBs . Prudential Norms for RRBs . RRBs and Economic Reforms . Foreign Banks . Development Financial Institutions (DFIs) . Evolution of Development Banks . Importance of DFIs . Functions of DFIs . National Level Institutions . All-India Development Banks (AIDBs) . Specialised Financial Institutions (SFIs) . Investment Institutions . State Institutions . Types of Banks . Central Bank . Commercial Banks . Development Banks . Cooperative Banks . Specialised Banks . Types of Banking . Need for Mixed Banking . Merits. Demerits . . . COMMERCIAL BANKING Structure of Commercial Banking . Public Sector Banks . Private Sector Banks . Foreign Banks . Functions of Commercial Banks . Acceptance of Deposits . Granting Loans and Advances . Agency Services . Payment and Collection of Cheques . Bill of Exchange and Promissory Notes Execution of Standing Orders . Trustee Business . Safe Custody . Remittance of Funds . Issuing Letters of Credit. Payment of Pension . Performance of Government Transactions . .CENTRAL BANKS Definition of a Central Bank . Functions . Implementation of Monetary Policy. Note Issue. Banker to the Government . Bankers' Bank. Custodian of Foreign Exchange Reserves Lender of the Last Resort . Clearing Function. Credit Control . Interest Rate Interventions . Banking Supervision . Independence of the Central Bank . RBI as the Central Bank . . INDIAN MONEY MARKET AND FINANCIAL SERVICES Indian Money Market . Role of Money Market . Monetary Policy Frameworks . Structure of Money Market . Instruments of Money Market . Features . Secondary Market and Players . Indian Capital Market . Regulatory Framework . Policy Measures and Initiatives . Capital Market Instruments . Functions of Capital Market . Development of Stock Markets . Capital Market Reforms. Non-Banking Financial Companies (NBFCs) . Financial Services . Classification of Financial Services . Scope of Financial Services . Sources of Revenue . New Financial Products and Services . Merchant Banking . Issue Management . Underwriting . Bankers to an Issue . Brokers to the Issue . Registrars to an Issue and Share Transfer Agents. Debenture Trustees . Portfolio Managers . Leasing . Hire Purchase . Factoring . Forfaiting . Venture Capital . Housing Finance . Mutual Fund . Credit Rating . Foreign Exchange Management by Banks . Intervention of Central Banks . The Foreign Exchange Management Act, 1999 . . BASIC LENDING PRINCIPLES Liquidity . Profitability . Profitability Management . Profitability Planning . Safety Issues . Diversification of Risk . Benefits of Diversification . Costs of Diversification . Risk/Return Trade-off . Credit Creation . Credit Function . Types of Credit . Balance Sheet . . S. LOANS AND ADVANCES Loans . Classification of Loans . Advances . Cash Credit. Overdraft. Discounting of Bills . Lending to Corporates . Domestic Lendings . Global Lendings . Mode of Securing Loans/Advances . Unsecured Advances . Secured Advances . Purposes of Loan . Priority Sector Advances . Public Sector/Banking Sector/Other Sectors. Loan Appraisal and Disbursal. Lending Policies . Loan Objectives . Volume of Loans . Geographical Distribution . Evaluation of Loan Proposals. Industry Level Credit Analysis. Operational Efficiency. Financial Efficiency . Management Evaluation. Analysis of Fundamental Factors . Credit Files. Lending Rates. Loan Administration. Loan Pricing. Objectives . Loan Pricing Model . . .NEGOTIABLE INSTRUMENTS Promissory Notes . Bills of Exchange . Cheques . Types of Cheques . Parties to a Negotiable Instrument . Valid Acceptance . Holder in Due Course . Endorsement . Liabilities of Parties . Nature of Suretyship . Discharge of Endorser's Liability. Effect of Forgery. Instrument Acquired after Dishonour. Dishonour of a Cheque . Notice of Dishonour . Noting and Protesting . Collection of Cheques and Other Instruments . Duties . Responsibilities. Liabilities . Standard Time Norms . Redressal of Complaints and Grievances . Responsibility of Paying . Speedier Collection of Cheques . . . BANKER AND CUSTOMER The Banker . General Responsibilities . Specific Duties . Positive Traits a Banker should Possess . Duties of a Customer . Nature of Banker$1 (BCustomer Relationship. Normal Incidents of the Relationship . Appropriation of Payments . Banker's Right to Lien. Banker's Right of Set-off . Banker's Obligation to Honour Customer's Cheques . Banker's Obligation to Protect Customer Secrecy. Banker's Right to Charge Interest and Commission . Garnishee Order . Banker$1 (BCustomer Relationship in the Context of the Bankers Book Evidence Act Deposit Account . Types of Deposit Account . Steps to Open a Savings Bank Account . Procedure for Operating a Deposit Account . Issue of Passbook. Issue of Cheque book . Issue of a Fixed Deposit Receipt . Procedure for Closure of Accounts . . TYPES OF ACCOUNT HOLDERS . Individual. Joint Account Holders . Illiterates . Minors . Married Women . Non-Resident Accounts. Non-Repatriable Accounts. Non-Resident (External) Rupee (NRE) Account. Joint Hindu Family . Sole Proprietorship. Partnership Firms . Joint Stock Company. Clubs, Associations and Societies . Trusts . Executors and Administrators. Government Departments . Local Authorities . Payment of Pension . Certificates of Deposit . . .. METHODS OF REMITTANCE Demand Draft . Mail Transfer . Telegraphic Transfer. Banker's Cheques . Traveller's Cheque . Bank Credit Cards . MICR Clearing . Functioning of MICR Technology . Bankers Automated Clearing System. Electronic Credit Clearing Service . Electronic Debit Clearing . Society for Worldwide Interbank Financial Telecommunication (SWIFT) Automated Trading System . Clearing House Automated Payment System. Electronic Funds Transfer. Electronic Funds Transfer Point of Sale . Digital Payment System. E-Banking . Virtual Payment Systems . PayPal . WebMoney . First Virtual System. Visa Virtual Payment Card . NetSafe. BPC Virtual Payment Systems. Internet Banking . Mobile Banking. Models . Challenges . Home Banking . Telebanking . Offshore Banking . Advantages . Disadvantages . Financial Services. Postal Order . Indian Postal Order. British/Irish Postal Order . PIO Card Scheme. Gold Banking . Reciprocal Line Facilities . Social Banking . . . . TECHNOLOGY IN BANKING Computerisation in Banks . The Internet and E-commerce in Banking. Hi-Tech Banking. Core Banking . User Expectations. Core Banking Solutions. ATM Cards . Debit Cards . Advantages and Disadvantages. Credit Cards . Secured Credit Cards . Cirrus Logo. Prepaid Credit Cards . Credit Card Security . Profits and Losses . Credit Card Numbering .7 Smart Cards . Contact Smart Cards . Contactless Smart Cards. Cryptographic Smart Cards . Applications of Smart Cards . . . MODERN TRENDS IN INDIAN BANKING Nationalisation of Banks and After . Social Banking . Lead Bank Scheme . Priority Sector Lending . Priority Sector Lending. Categories of Priority Sector . Reforms in Priority Sector Lending . Credit to Agriculture and Allied Activities. Revised Guidelines on Priority Sector Lending . Financial Inclusion. Service Area Approach . Guidelines for Implementation . Reforms in SAA Scheme . Micro-Credit . Self-Help Groups . Non-Governmental Organisations . Micro-Credit Disbursement Indicators . Foreign Investment in Micro-Credit Projects . Micro-Finance Development Funds