INDIAN INSTITUTE OF BANKING & FINANCE

JAIIB

MODULE (A & B)

PRINCIPLES OF BANKING

Monday April 03/2006T M C VARADARAJAN

t.varadarajan@scotiabank.com

RBI’s Major Functions

• Supervisory & Regulatory

• Promotional & Developmental

• Refinance Activities

RBI’s Major Functions

• Supervisory & Regulatory

• Promotional & Developmental

• Refinance Activities

RBI’s Major Functions

SUPERVISORY & REGULATORY

IS S U A N C EO F

C U R R E N C YN O TE S

C R E D ITC O N TR O L

E X C H A N G EC O N TR O L

TR A N S F E RO F F U N D S

RBI’s Major Functions

• Supervisory & Regulatory

• Promotional & Developmental

• Refinance Activities

RBI’s Major Functions

PROMOTIONAL & DEVELOPMENTAL

B an ker toG overn m en t

B an ker toB an kers

E xp orts

In d u s try

A g ricu ltu re

F in an ce Tra in in g

RBI’s Major Functions

• Supervisory & Regulatory

• Promotional & Developmental

• Refinance Activities

RBI’s Major Functions

REFINANCE ACTIVITIES

L E N D E R O F L A S T R E S O R T R E F IN A N C E O P E R A TIO N S

BANKER - CUSTOMER RELATIONSHIP

• Definition

• Rights & Obligations

• Deposit Accounts

• Loan Accounts

BANKER - CUSTOMER RELATIONSHIP

• Definition

• Rights & Obligations

• Deposit Accounts

• Loan Accounts

BANKER - CUSTOMER RELATIONSHIP

Deposit Accounts

C U R R E N T

S A V IN G S

D E M A N D

F IX E D

C U M U L A TIV E

R E C U R R IN G

TE R M

C E R TIF IC A TE O F D E P O S IT

F L E X I-D E P O S IT

O TH E R S

BANKER - CUSTOMER RELATIONSHIP

• Definition

• Rights & Obligations

• Deposit Accounts

• Loan Accounts

BANKER - CUSTOMER RELATIONSHIP

Loan Accounts

W O R K IN G C A P ITA L F IN A N C E

C A S H C R E D IT

O V E R D R A F T

D E M A N D

F IX E D

R E TA IL

C O N S U M E R

H O M E L O A N

TE R M

N O N -F U N D B A S E D F IN A N C E

B IL L S F IN A N C E

O TH E R S

NEGOTIABLE INSTRUMENTS

TYPES

D E M A N D U S A N C E

P R O M IS S O R Y N O TE S

B E A R E R O R D E R

C R O S S E D U N C R O S S E D

C H E Q U E S

S IG H T U S A N C E

B IL L S O F E X C H A N G E

NEGOTIABLE INSTRUMENTS

BANKER’S DUTIES & RESPONSIBILITIES

A P P A R E N T TE N O R P A Y M E N T IN G O O D F A ITH W ITH O U T N E G L IG E N C E

P A Y M E N T IN D U E C O U R S E

P A Y M E N T O F C H E Q U E S

C O N S ID E R A TIO N B E F O R E M A TU R ITY TITL E

H O L D E R IN D U E C O U R S E

C O L L E C TIO N O F C H E Q U E S

5 C’s for Credit Appraisal

• CHARACTER

• CAPITAL

• CAPACITY

• COLLATERAL

• CONDITION

FINANCIAL SERVICES

• Objectives

• Markets

• Instruments

• Regulatory

FINANCIAL SERVICES

• Objectives

• Markets & Instruments

• Regulatory

FINANCIAL SERVICES

MARKETS & INSTRUMENTS

S E B I

C A P ITA L M A R K E T

R B I

M O N E Y M A R K E T

A M F I

M U TU A L F U N D S

IR D A

IN S U R A N C E

Recent Developments

• Banking and Technology

• Basel II Accord

• Universal Banking

THANK YOU

T M C VARADARAJAN

022 – 2563 8965 / 5636 4214t.varadarajan@scotiabank.com