1. Banking Law and Regulation
Contents
Units
Introduction
Central Bank and Legal System
Structure and Formation of Bank and Financial Institutios
Major Banking Law
Bank Regulation and Central Bank Policy for Bank and FIs
Legal Provision Relating to Negotiable Instrument
Bank and Customer Relationship
Bank Lending and Securities
Legal Aspects of Trade Finance
Legal Challenges in Banking Business

2. Meaning and concept of Bank and Financial Institutions
What is a bank?

3. Concept of Bank
Simply , Bank is defined as institution that deals with money.
The legal definition of bank is more important because other types of financial institutions also offers the similar services but are not subjected to the same regulation as banks.
Modern bank is defined as “bank is that what bank does.”
Issues notes
Accept deposits
Grants loan
Credit creation and controls
Acts as agent
Service provider and profit maker
Medium of exchange
Manage the payment system of the country

4. “Bank is an institution whose principal operations are concerned with the collection of the temporarily idle money of the general public for the purpose of advancing to other for expenditure.” Kent “Banking means the accepting for the purpose of lending or investment of deposit of money from the public repayable on demand or otherwise , and withdrawal by cheque draft or otherwise.” Banking Regulation Act of India

5. Types of Bank Three main types of Bank Central Bank Commercial Bank
Development Bank
Other types of Bank
Merchant banks (eg. Ace Development Bank)
Industrial banks
Exchange banks
Saving bank
Rural banks
Cooperative banks