Embed Size (px)
Citation preview
JAIIBOCTOBER 08/2007
WELCOME TO VIRTUAL CLASS ROOM SESSION
PRINCIPLES OF BANKINGMODULE B
BANKER-CUSTOMERBANKER-CUSTOMERRELATIONSHIPRELATIONSHIP
DEBTOR-CREDITORDEBTOR-CREDITORCREDITOR-DEBTORCREDITOR-DEBTORAGENT-PRINCIPALAGENT-PRINCIPALLESSOR-LESSEELESSOR-LESSEEBAILEE-BAILORBAILEE-BAILOR
FAQs
KYC: Know Your Customer Know your customer norms are applicable to all customer accounts. It deals with not only to identify the customer but also to understand the activities of the customer, to ensure that the operations in the customer account/s is/are for genuine purpose
Garnishee Order
A garnishee order is issued by a court Ex: Mr X borrows money from Mr Y and fails to
repay. Mr Y files a suit against Mr X, under the Civil
Procedure Code and the Court issues a decree and attaches the funds in Mr. X’s bank account with bank A.
The order issued by the Court on bank A is known as “Garnishee Order”
Mr Y is the judgement creditor Mr.X is the Judgement debtor. Bank A is
Judgement debtor’s debtor
BANKER’S DUTIES & RESPONSIBILITIES
PAYING BANKER PAYMENT OF
CHEQUES
PAYMENT IN DUE COURSE
APPARENT TENOR
PAYMENT INGOOD FAITH
WITHOUTNEGLIGENCE
NEGOTIABLE INSTRUMENTS
CHEQUES
OPEN
CROSSED
ORDER
BEARER
NEGOTIABLE INSTRUMENTS BANKER’S DUTIES
& RESPONSIBILITIES
C0LLECTING BANKER
COLLECTION OF CHEQUES
HOLDER INDUE
COURSE
CONSIDERATIONTITLE
IBEFOREMATURITY
WORKING CAPITAL OPERATING WORKING CAPITAL OPERATING CYCLECYCLE
BILLS REALISED
CREDIT SALES
BILLS
PAYABLE
RAWMATERIAL
SEMI FINISHED PRODUCTS
FINISHED PRODUCTS
CASH
DEPOSIT ACCOUNTS
CERTIFICATE
FLEXI
RECURRING
FIXED
SAVINGS
CURRENT
DEPOSITS
CERTIFICATE OF DEPOSITCERTIFICATE OF DEPOSIT
CD IS A MONEY MARKET INSTRUMENTCD IS A MONEY MARKET INSTRUMENT ISSUED AT A DISCOUNTISSUED AT A DISCOUNT MINIMUM AMOUNT IS Rs. One LAKHMINIMUM AMOUNT IS Rs. One LAKH MINIMUM PERIOD OF CD 15 DAYSMINIMUM PERIOD OF CD 15 DAYS MAXIMUM PERIOD OF 1 YEARMAXIMUM PERIOD OF 1 YEAR DIFFERS FROM FD DIFFERS FROM FD a) Prepayment not alloweda) Prepayment not allowed b) Loan is not allowedb) Loan is not allowed
CHARGESCHARGES
• HYPOTHECATIONHYPOTHECATION• PLEDGEPLEDGE• MORTGAGEMORTGAGE• ASSIGNMENTASSIGNMENT• LIENLIEN• SET OFFSET OFF
FUND BASED FINANCE
BILLS FINANCE
TERMFINANCE
RETAIL FINANCE
OVERDRAFT
CASH CREDIT
LOANS&
ADVANCES
Non-Fund Based Finance
BANKGUARANTEE
CO-ACCEPTANCEOF BILLS
LETTERS OF CREDIT
Non-Resident Indian Accounts
Who is a Non Resident Indian?1)An Indian citizen who resides outside India on
account of a) Employment/business/vocation and b) staying outside India for an uncertain period2)A person of Indian origin but a citizen in any other country except Pakistan/Bangladesh if at any time holding an Indian passport
6 Cs6 Cs CHARACTERCHARACTER CAPTIALCAPTIAL CAPACITYCAPACITY COLLATERALCOLLATERAL CONDITIONCONDITION COMPLIANCECOMPLIANCE
Clayton’s CaseClayton’s Case
Applicable only to aApplicable only to aa) joint a/c and or a partnership a/ca) joint a/c and or a partnership a/cb) running c/c and o/d a/csb) running c/c and o/d a/csc) Not to two different a/csc) Not to two different a/cs
(Right of set off is applicable)(Right of set off is applicable)
Based on the concept of AppropriationBased on the concept of Appropriation
FAQsFAQs Distinguish -Cash Credit and OverdraftDistinguish -Cash Credit and Overdraft Both CC and OD forms part of working Both CC and OD forms part of working capital financecapital finance CC is granted against moveable goodsCC is granted against moveable goods (inventory/semi finished goods/goods etc)(inventory/semi finished goods/goods etc) OD is granted against paper securityOD is granted against paper security (Fixed deposit receipts/shares/book debts)(Fixed deposit receipts/shares/book debts)
ALL THE BEST & THANK YOU
T.M.C.VARADARAJAN TEL : 022-25638965 (R) 022-66364206 (O) e.mail: [email protected] [email protected]
