CS Professional Banking Law and Practice Notes Study Material Important Questions
- Chapter 1 Overview of Indian Banking System
- Chapter 2 Regulatory Framework of Banks
- Chapter 3 Control Over Organization of Banks
- Chapter 4 Regulation of Banking Business
- Chapter 5 Banking Operations
- Chapter 6 IT in Banking
- Chapter 7 Payment and Collection of Cheques and Other Negotiable Instruments
- Chapter 8 Case Laws on Responsibility of Paying Bank
- Chapter 9 Case Laws on Responsibility of Collecting Bank
- Chapter 10 Various Government Schemes
- Chapter 11 Consumer Protection
- Chapter 12 Loans and Advances
- Chapter 13 Securities for Banker’s Loans
- Chapter 14 Documentation
- Chapter 15 Calculation of Interest and Annuities
- Chapter 16 Calculation of YTM
- Chapter 17 Introduction to Foreign Exchange
- Chapter 18 Non-Performing Assets
- Chapter 19 Final Accounts of Banking Companies
- Chapter 20 Risk Management in Banks and Basel Accords
- Chapter 21 Audits in Banks
- CS Professional Banking Law and Practice Glossary of Important Terms
CS Professional Banking Law and Practice Syllabus
CS Professional Banking Law and Practice Chapter Wise Weightage
Professional Programme Module 3
Elective Paper 9.1 Banking – Law & Practice (Max Marks 100)
Objective
To develop a robust knowledge base pertaining to significant facets of Banking Sector among those students who wish to pursue a career in the Banking Sector.
1. Overview of Indian Banking System: Indian Banking System – Evolution; RBI and its Role; Structure of Banks in India; Commercial Banks; Co-operative Banking System; Development Banks; NBFCs.
2. Regulatory Framework of Banks: Constitution, Objectives, Functions & Powers of RBI; Tools of Monetary Control; Regulatory Restrictions on Lending; Business of Banking; Constitution of Banks; RBI Act, 1934; Banking Regulation Act, 1949; Role of RBI; Govt. as a Regulator of Banks; Control over Co-operative Banks; Regulation by other Authorities.
3. Control over Organization of Banks: Licensing of Banking Companies; Branch Licensing; Paid up Capital and Reserves; Shareholding in Banking Companies; Subsidiaries of Banking Companies; Board of Directors; Chairman of Banking Company; Appointment of Additional Directors; Restrictions on Employment; Control over Management; Directors and Corporate Governance.
4. Regulation of Banking Business: Power of RBI to Issue Directions; Acceptance of Deposits; Nomination; Loans and Advances; Regulation of Interest Rate; Regulation of Payment Systems; Internet Banking Guidelines; Regulation of Money Market Instruments; Reserve Funds; Maintenance of CRR, SLR; Assets in India.
5. Banking Operations: Preparation of Vouchers, Cash Receipt, and Payment Entries, Clearing Inward and Outward Entries, Transfer Debit and Credit Entries; What is KYC and What are the Different to satisfy KYC; Verify KYC and authenticity of documents, Operational Aspects in Regard to Opening of All Types of accounts; Scrutiny of Loan Applications/Documents, Allowing Drawals and Accounting Entries involved at various stages, operational Aspects of CBS environment, etc.; Back Office Operations in Banks, Handling of Unreconciled Entries in Banks.
6. IT in Banking: Overview of Banking services and IT related Risk and Controls, Components and Architecture of CBS, Core Business Processes Flow and Relevant Risks and Controls Reporting System and MIS; Data Analytics and Business Intelligence.
7. Payment and Collection of Cheques and Other Negotiable Instruments: NI Act; Role & Duties of Paying & Collecting Banks; Endorsements; Forged Instruments; Bouncing of Cheques; Its Implications; Return of Cheques; Cheque Truncation System.
8. Case Laws on Responsibility of Paying Bank: Negotiable Instruments Act and Paying Banks; Liability of Paying Banker; Payment in Due Course; Payment in Good Faith; Whether Payment under Mistake Recoverable.
9. Case Laws on Responsibility of Collecting Bank: Statutory Protection to Collecting Bank; Duties of Collecting Bank.
10. Various Government Schemes: Pradhan Mantri Jan DhanYojana (PMJDY); SukhanyaSamridi Account; MUDRA Bank Yojana; Pradhan Mantri Jeevan Jyoti BeemaYojana (PMJJBY); Pradhan Mantri Suraksha BimaYojana (PMSBY); Atal Pension Scheme, etc.
11. Consumer Protection: Operational Aspects of Consumer Protection Act & Banking Ombudsman Scheme.
12. Loans and Advances: Different Types of Borrowers; Types of Credit Facilities- Cash Credit, Overdraft, Demand Loans, Term Loans, and Bill Finance.
13. Securities for Banker’s Loans: Types of Securities; Assignment; Lien; Set-off; Hypothecation; Pledge; Mortgage; Indemnities and Guarantees; Factoring; Bill discounting; Letter of Credit; Commercial Papers; Bank Guarantees; Book debts; Corporate Securities; Charges.
14. Documentation: Types of Documents; Procedure; Stamping; Securitisation.
15. Calculation of Interest and Annuities: Calculation of Simple Interest & Compound Interest; Calculation of Equated Monthly Installments; Fixed and Floating Interest Rates; Calculation of Annuities; Interest Calculation using Products/Balances; Amortisation of a Debt; Sinking Funds.
16. Calculation of YTM: Debt- Definition, Meaning & Salient Features; Loans; Introduction to Bonds; Terms associated with Bonds; Cost of Debt Capital; Bond value with semi-annual Interest; Current Yield on Bond; Calculation of Yield-to-Maturity of Bond; Theorems for Bond Value; Duration of Bond; Properties of Duration; Bond Price Volatility.
17. Foreign Exchange Arithmetic: Fundamentals of Foreign Exchange; Forex Markets; Direct and Indirect Quote; Some Basic Exchange Rate Arithmetic – Cross Rate, Chain Rule, Value date, etc.; Forward Exchange Rates – Forward Points; Arbitrage; Calculating Forward Points; Premium/discount; etc.
18. Non Performing Assets: Definition; Income Recognition; Asset Classification; Provisioning Norms; CDR Financial Inclusion BC; BF; Role of ICT in Financial Inclusion, Mobile based transactions, R SETI.
19. Final Accounts of Banking Companies: Definition and Functions of a Bank; Requirements of Banking Companies as to Accounts and Audit; Significant Features of Accounting Systems of Banks; Principal Books of Accounts; Preparation and Presentation of Financial Statements of Banks; CMA Format; Accounting Treatment of Specific Items; Preparation of Profit and Loss Account; Comments on Profit and Loss Account; Important Items of Balance Sheet; Disclosure Requirements of Banks; Additional Disclosures prescribed by RBI; Disclosures required under BASEL norms.
20. Risk Management in Banks and Basel Accords: Introduction to Risk Management; Credit Risk Management; Liquidity and Market Risk Management; Operational Risk Management; Risk Management Organisation; Reporting of Banking Risk; Risk Adjusted Performance Evaluation; Basel- I, II & III Accords.