Presented ByBhavana

Let’s Revise

Banking Law & Practice

S.No Description

1 Indian Contract Act 1872

2 Relationship Between Banker & Customer

3 Rights Of a Banker

4 Duties Of a Banker

5 Banker’s Obligations

6 Negotiable Instrument Act 1881 , Cheque

7 Bill Of Exchange

8 Consumer Protection Act ,Law Of Limitation 1963

9 Right to Information Act 2005, Information Technology Act 2000

10 Banker’s Book Evidence Act 1891, SARFAESI Act 2002

11 Banking Ombudsman Scheme 2006

Agenda

Indian Contract Act 1872

Proposal

Promise

Offer

Types Of Contract

Valid Contract

Void Contract

Unenforceable Contract

Voidable

Contract

Illegal Contract

Express Contract

Tacit Contract

Implied Contract

Further Classified into

General and Special Relationship

Debtor and Creditor Trustee and Beneficiary Lessor and Lessee Principal and Agent

Rights Of a Banker

Right to General

Lien

Right to Set Off

Right to Receive

Commission

Right to Appropri

ation

Pay Only When

Demanded

Duties Of a Banker

Repay Money

Maintain Secrecy

Give notice before closing

A/c

Receive Money

Banker’s Obligations

Honour Cheques

Abide By the

Garnishee Order

No Wrongful dishonour Of Cheques

Negotiable Instrument Act, 1881

Transferred from person to person towards settlement of monetary dues without a physical cash is called “Negotiability“

The paper used for such transactions is called a “Negotiable Instrument”

Types of Negotiable Instruments

Bill of Exchange Promissory NotesCheques

HundisShare WarrantsBanker’s DraftsBearer DebenturesRailway ReceiptsCircular Notes

By Status By Usage or Custom

Cheques

• A Cheque is always Payable On demand.S.No Parties to a Cheque

1 Drawer: One who draws the Cheque i.e. the account holder.

2 Drawee: The bank on which the cheque is drawn.

3 Payee: The person who is named in the cheque to Receive payment.

4 Endorser: The Payee who desires to use the same Cheque to make his payment to someone else.

5 Endorsee: the person who receives the cheque from Endorser.

• For example , Pritam has an account with AN Bank. He wants to pay R.s 2000 to Geeta.

Example

Pritam:Drawer

Draws Cheque to pay Geeta

AN Bank:Drawee

Geeta: Payee

Geeta: Endorser

Balu: Endorsee

Balu Receives Payment

Geeta Receives Payment

Endorses same

Cheque to pay Balu

1. Endorsement2. Classes of Endorsement Blank or General Endorsement Full or Special Endorsement Partial Endorsement Restrictive Endorsement

General Crossing Special Crossing Not Negotiable Account payee

Types of crossing

What is Bearer and Order Cheque ??

Consumer Protection Act (COPRA), 1986

Bank’s Improper ConductConsumer Power

Law Of Limitations 1963

• Introduction• Reasons for Statutes of Limitation• Triggering the Statutory Period• Limitation Period

Right to Information(RTI) Act, 2005

Right to information Include :

Access Information

Inspect Information

Obtain Information

Application and Information Fees

Right to Information

Application Fees Rs

10(Cash/DD/PO)

Free Of Cost if applicant is

below poverty Line

Rs. 2 for each Page A4 Size Or A3 Size

Larger Page as per Charge or Cost Price

Sample and model as per cost Or price

Free inspection for first hour. Then, Rs.5 for Every 15 minutes

Rs. 50 for Floppy / diskette

Rs. 2 per copy of extract Or cost of

publication

Information Technology (IT), Act 2000

DUE DILIGENCE

Information Technology Act 2000 and Banks

Banker’s Book Evidence Act 1891

• Banker’s Book Evidence Act • Definition Of Certified Copy• Banker’s Certifications on bank records used

as Evidence

SARFAESI Act, 2002

Introduction

Bank

Borrowers

Asset Reconstruction

Company

Bad Loan- NPA

• Empowering Bankers• Borrower• Default• Asset Reconstruction

Cont…

Banking Ombudsman Scheme, 2006

• Grounds Filling Complaint to the Banking Ombudsman

• Methods to Filing the complaint• Complaint Resolution