2015 – 2016

BA7026 – Banking Financial

Services Management

UNIT – I – OVERVIEW OF INDIAN BANKING SYSTEM

Ms. Jebakerupa Roslin Amirtharajan

ST. JOSEPH’S COLLEGE OF ENGINEERING, CHENNAI

| Department of MBA
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BA7026 – Banking Financial Services Management

THE INDIAN FINANCIAL SYSTEM 2

FINANCIAL ASSETS AND INSTRUMENTS 3

FINANCIAL MARKETS 3
FINANCIAL INTERMEDIARIES 4

THE INDIAN BANKING SYSTEM 4

NEED OF THE BANKS 4

REGULATION IN INDIAN BANKING SYSTEM 4
CLASSIFICATION OF BANKING INDUSTRY IN INDIA 6

FUNCTIONS OF BANK 8
PRIMARY FUNCTIONS OF BANKS: 8
SECONDARY FUNCTIONS OF BANKS: 9

RESERVE BANK OF INDIA ACT, 1934 10

STRUCTURE, ORGANISATION AND GOVERNANCE 10

PRIMARY AUTHORITY OF THE CENTRAL BOARD 12
SUBSIDIARIES OF THE RBI 13
FUNCTIONS OF RBI 14
RBI TOOLS FOR DEVELOPING FINANCIAL SCHEME 16

THE NEGOTIABLE INSTRUMENT ACT, 1881 17

MEANING AND DEFINITION OF NEGOTIABLE INSTRUMENTS 17

CHARACTERISTICS OF A NEGOTIABLE INSTRUMENT 18
PRESUMPTIONS AS TO NEGOTIABLE INSTRUMENT 18
TYPES OF NEGOTIABLE INSTRUMENT 19
NEGOTIATION 22
ASSIGNMENT 23
ENDORSEMENT 23
INSTRUMENTS WITHOUT CONSIDERATION 24
HOLDER IN DUE COURSE 24

THE BANKING REGULATION ACT, 1949 26

MAIN PARTS OF THE ACT 26

DEFINITION OF BANKING 26
RIGHTS AND OBLIGATIONS OF A BANKER 31
RIGHT TO CHARGE SERVICE CHARGES: 33

BANKS’ FINANCIAL STATEMENT 34

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Virtual document

Transferring Financial Assets

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Mediator

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State Bank of India

96 Scheduled Commercial Banks, 27 public sector

banks, 31 private banks and 38 foreign banks

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

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nationalize 14 major commercial banks on 19th July, 1969

second dose of nationalisation came in April 1980

 Social Welfare

 Controlling Private Monopolies

 Expansion of Banking

 Reducing Regional Imbalance

 Priority Sector Lending

 Developing Banking Habits

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

CENTRAL BOARD OF DIRECTORS

GOVERNOR
DEPUTY GOVERNORS
EXECUTIVE DIRECTORS
PRINCIPAL CHIEF GENERAL MANAGER
CHIEF GENERAL MANAGERS
GENERAL MANAGERS
DEPUTY GENERAL MANAGERS
ASSISTANT GENERAL MANAGERS
MANAGERS
ASSISTANT MANAGERS
SUPPORT STAFF

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

accepting, for the purpose of lending or investment,

or deposits of money from the public, repayable on demand or otherwise, and

withdrawable by cheque, draft, order or otherwise

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Cases in which lien cannot exercise:

Exception to the Right of lien:

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

cases in which automatic set

off can exercise

Conditions while exercising right of Set - Off:

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan

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BA7026 – Banking Financial Services Management

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Unit – I – OVERVIEW OF INDIAN BANKING SYSTEM Ms. Jebakerupa Roslin Amirtharajan