14MBAFM301 Principles & Practices of Banking syllabus for MBA


Unit-1 8 hours

Banking system and structure in India- Evolution of Indian Banks-Types of banks -PublicSector, Regional Banks, Performance of Public Sector banks, Private Sector Banks.Commercial banking: Structure, Functions - Primary & secondary function, Role of commercialbanks in socio economic development, Services rendered. Credit creation and Deployment ofFunds.-Role of Reserve Bank and GOI as regulator of banking system – Provisions of BankingRegulation Act & Reserve Bank of India Act

Unit-2 9 hours

Banker and customer – Types of relationship between banker and customer – Bankersobligations to customers – Right of lean, setoff, appropriation–Bankers legal duty of disclosureand related mattersCustomers` accounts with banks – Opening- operation – KYC norms and operation – Types ofaccounts and customers – Nomination – Settlement of death claims

Unit-3 7 hours

The Negotiable Instruments Act 1881-Features of Negotiable instruments-Important conceptsand explanations under the Negotiable Instruments Act- The Paying Banker-Dishonour ofcheques-Negotiation-Endorsement- The Collecting Banker-Negligence-Bills of exchange andpromissory note-Discharge of Negotiable instruments-Hundis.

Unit-4 8 hours

Banking Technology- Concept of Universal Banking-Home banking – ATMs- Internet banking– Mobile banking- Core banking solutions – Debit, Credit, and Smart cards – Electronic Paymentsystems-MICR- Cheque Truncation-ECS- EFT – NEFT-RTGS

Unit-5 8 hours

International banking – International Banking: Exchange rates and Forex Business,Correspondent banking and NRI Accounts, Letters of Credit, Foreign currency Loans, Facilitiesfor Exporters and Importers, Role of ECGC, RBI and EXIM Bank

Unit-6 7 hours

Banker as lender – Types of loans – Overdraft facilities – Discounting of bills – Financing bookdebts and supply bills- Charging of Security bills- pledge – mortgage – assignment.

Unit-7 9 hours

Asset Liability Management(ALM) in banks: Components of Liabilities and Components ofAssets, Significance of Asset Liability management, Purpose and objectives. Prerequisites forALM, Assets and Liabilities Committee (ALCO)- Activities of ALCO

Last Updated: Tuesday, January 24, 2023