BANKING

MEANING OF BANKING
ACCEPTING, FOR THE PURPOSE OF LENDING OR INVESTMENT, OF DEPOSITS OF MONEY FROM THE PUBLIC, REPAYABLE ON DEMEND OR OTHERWISE, AND WITHDRAWABLE BY CHEQUE, DRAFT, ORDER OR OTHERWISE. SECTION 5 (b).

FEATURES OF BANKING
A BANKING COMPANY MUST PERFORM BOTH OF THE ESSENTIAL FUNCTIONS VIZ., 1. ACCEPTING OF DEPOSITS 2. LENDING OR INVESTING THE SAME DEPOSIT OF MONEY FROM THE PUBLIC- THE BANKER ACCEPTS DEPOSITS OF MONEY AND NOT OF ANYTHING ELSE. TIME AND MODE OF WITHDRAWALE

SIR JOHN PAGETS DEFINITION

NO PERSON OR BODY, CORPORATE OR OTHERWISE, CAN BE A BANKER WHO DOES NOT 1. TAKE DEPOSIT ACCOUNTS 2. TAKE CURRENT ACCOUNTS 3. ISSUE AND PAY CHEUES 4. COLLECT CHEQUES, CROSSED AND UNCROSSED, FOR HIS CUSTOMERS.

INDIAN BANKING SYSTEM

CENTRAL BANK & MONETARY AUTHORITY

INDUSTRIAL DEVELOPMENT BANK OF INDIA

SIDBI

NABARD

EXIM BANK NATIONAL HOUSING BANK

DEVELOPMENT BANKS
INDUSTRIAL DEVELOPMENT BANKS ALL INDIA LAND DEVELOPMENT BANKS

STATE LEVEL IIBI

IFCI LTD

ICICI LTD

SFCs

SIDCs

DEFINITION OF CUSTOMERS
CUSTOMER IS NOT DEFINED BY LAW IN SIR JOHN PAGETS VIEW TO CONSTITUTE A CUSTOMER THERE MUST BE SOME RECOGNISABLE COURSE OR HABIT OF DEALING IN THE NATURE OF REGULAR BANKING BUSINESS THIS IS CALLED DURATION THEORY Dr. HART A CUSTOMER IS ONE WHO HAS AN ACCOUNT WITH THE BANKER OR FOR WHOM A BANKER HABITUALLY UNDERTAKES TO ACT AS SUCH

GENERAL RELATIONSHIP BETWEEN BANKER AND CUSTOMER

RELATIONSHIP AS DEBTOR AND CREDITOR BANKER AS TRUSTEE BANKER AS AGENT

OBLIGATIONS OF A BANKER
1. OBLIATION TO HONOUR THE CHEQUES 2. OBLIGATION TO MAINTAIN SCRECY OF ACCOUNT

BANKERS RIGHTS
RIGHT OF GENERAL LIEN RIGHT OF SET-OFF BANKERS RIGHT OF APPROPRIATION ( RULE IN CLAYTONS CASE) RIGHT TO CHARGE INTEREST, INCIDENTAL CHARGES ETC. PERIOD OF LIMITATION