JAIIB NOV 01/2006

WELCOME TO VIRTUAL CLASS ROOM SESSSIONS

RESERVE BANK OF INDIA

SUPERVISORY & REGLATORY
ISSUANCE OF CURRENCY NOTES CREDIT CONTROL

EXCHANGE CONTROL
TRANSFER OF FUNDS

BANKER-CUSTOMER RELATIONSHIP
DEBTOR-CREDITOR CREDITOR-DEBTOR AGENT-PRINCIPAL LESSOR-LESSEE BAILEE-BAILOR

Garnishee Order
A garnishee order is issued by a court Ex: Rajesh borrows money from Bala and fails to repay. Bala files a suit under Civil Procedure Code and the Court issues a decree and attaches the funds in Rajeshs bank account with bank A. The order issued by the Court on bank A is called Garnishee Order Rajesh is the judgement creditor Bala is the Judgement debtor. Bank A is Judgement debtors debtor

NEGOTIABLE INSTRUMENTS

BANKERS DUTIES & RESPONSIBILITIES PAYING BANKER PAYMENT OF CHEQUES

PAYMENT IN DUE COURSE

APPARENT TENOR

PAYMENT IN GOOD FAITH

WITHOUT NEGLIGENCE

CHEQUES
BEARER ORDER CROSSED OPEN

NEGOTIABLE INSTRUMENTS
BANKERS DUTIES

& RESPONSIBILITIES C0LLECTING BANKER COLLECTION OF CHEQUES

HOLDER IN DUE COURSE

CONSIDERATION

TITLE

IBEFORE MATURITY

WORKING CAPITAL OPERATING CYCLE

CASH RAW MATERIAL

BILLS REALISED

SEMI FINISHED PRODUCTS

BILLS PAYABLE

FINISHED PRODUCTS CREDIT SALES

DEPOSIT ACCOUNTS
CURRENT

CERTIFICATE

SAVINGS

DEPOSITS

FLEXI

FIXED

RECURRING

CERTIFICATE OF DEPOSIT

CD IS A MONEY MARKET INSTRUMENT ISSUED AS A DISCOUNT INSTRUMENT MINIMUM AMOUNT IS Rs. One LAKH MINIMUM PERIOD OF CD 15 DAYS MAXIMUM PERIOD OF 1 YEAR DIFFERS FROM FD a) Prepayment not allowed b) Loan is not allowed

CHARGES
HYPOTHECATION PLEDGE MORTGAGE ASSIGNMENT LIEN SET OFF

FUND BASED FINANCE

CASH CREDIT

BILLS FINANCE

OVERDRAFT

LOANS & ADVANCES

TERM FINANCE

RETAIL FINANCE

Non-Fund Based Finance

LETTERS OF CREDIT

BANK GUARANTEE

CO-ACCEPTANCE OF BILLS

CAMELS - MODEL
Capital Adequacy Asset Quality Management Earnings Liquidity Systems & Control

Non-Resident Indian Accounts

Who is a Non Resident Indian?

1)An Indian citizen who resides outside India on account of a) Employment/business/vocation and b) staying outside India for an uncertain period 2)A person of Indian origin but a citizen in any other country except Pakistan/Bangladesh if at any time holding an Indian passport

6 Cs
CHARACTER CAPTIAL CAPACITY COLLATERAL CONDITION COMPLIANCE

Claytons Case
Applicable only to a
a) joint a/c and or a partnership a/c b) running c/c and o/d a/cs

c) Not to two different a/cs

(Right of set off is applicable)

Based on the concept of Appropriation

ALL THE BEST & THANK YOU

T.M.C.VARADARAJAN
TEL : 022-25638965 (R)

022-66364206 (O) e.mail: t.varadarajan@scotiabank.com tmc_varadarajan@yahoo.co.in