BANKING LAW AND PRACTICE

Assignment Topics
UNIT I
1. Define the terms banker and customer and bring out the relationship that exists
between them.
2. Is a banker obliged to maintain the secrecy of his customers account? Under what
circumstances can he disclose the account and what precautions should he take in
such cases?
3. The relationship between a banker and a customer is primarily that of a debtor and
creditor. Discuss.
4. State and explain the bankers obligation to honour the cheques. What risks does he
have to face in the case of wrongful dishonour of a cheque?
5. Describe the different types of banks and functions performed by them.
6. With the development of banking institutions, various systems of banking have come
into existence. Discuss the banking systems.
7. A comparison between unit banking and branch banking is essentially a comparison
between small-scale and large-scale operation. Discuss.

UNIT II
1. State the salient features of the Banking Regulation Act.
2. Outline the provisions of the Banking Regulation Act regarding the licensing and
business of banking company.
3. Narrate the provisions of the Banking Regulation Act regarding:
i)
Opening of new branches
ii)
Capital requirements
iii)
Inspection of banking companies
4. Elaborate the main functions of RBI.
5. Points out the instruments are available to the RBI for control of credit.
6. Explain the role of commercial banks in the economic development of a country.
7. Discuss the innovative lending schemes introduced recently by commercial banks in
India.

UNIT III
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Draw the fixed deposit and recurring deposit and discuss its schemes.
Distinguish between a Current Account and Savings Bank Account.
Describe the formalities which a banker has to observe before opening a new account.
Give a specimen of a cheque and discuss its features.
Distinguish between a cheque and draft and bring out clearly the risks of honouring a
post-dated cheque.
6. All cheques are bills but all bills are not cheques. Comment.
7. Discuss the legal position of a pass book.

8. Define negotiable instruments and discuss its features and types.

9. Describe the different kinds of crossing with examples and its significance.
10. An endorsement is to the signing of a document that allows for the legal transfer of a
negotiable from one party to another. Comment this statement and explain its kinds
with suitable examples.
11. A cheque containing a conditional endorsement is presented to you for payment. Will
you honour it without fulfilling that condition?
12. Distinguish between Forged endorsement and Irregular endorsement. How will
you ascertain whether an endorsement is regular or not.

UNIT IV
1. Elaborate the principles that guide a banker in granting loans and advances.
2. Outline the precautions should a banker take while making unsecured advances.
3. Pledge as, the bailment of goods as security for payment of a debt or performance of
a promise comment and explain rights and duties of a banker as a pledgee.
4. Discuss fully the various kinds of mortgage.
5. Analyse the factors that contribute to NPA.
6. Classify Early Warning Signals and explain them.
UNIT V
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Discuss the features of E-banking and bring out its merits and constraints.
List down the popular E-banking channels and facets of E-banking.
Define e-cheque and bring out its features and advantages.
Distinguish between conventional (traditional) banking and E-banking and explain the
various models for E-banking.
Describe Real-Time Gross Settlement (RTGS) and its advantages.
Analyse the various issues involved in E-banking and suggest measures to overcome
them.
Give a brief account of the banking sector reform in India.
Evaluate the role of NABARD in the field of agricultural finance.