1. WELCOME TO VIRTUAL CLASS ROOM SESSSION
JAIIB APRIL 02/2007
WELCOME TO VIRTUAL CLASS ROOM SESSSION
WELCOME TO IIBF’S VIRTUAL CLASS ROOM SESSIONS

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

3. NEGOTIABLE INSTRUMENTS
BANKER’S DUTIES & RESPONSIBILITIES
PAYING BANKER
PAYMENT OF CHEQUES

4. CHEQUES

5. NEGOTIABLE INSTRUMENTS
BANKER’S DUTIES & RESPONSIBILITIES
C0LLECTING BANKER
COLLECTION OF
CHEQUES

6. DEPOSIT ACCOUNTS

7. 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

8. CHARGES
HYPOTHECATION
PLEDGE
MORTGAGE
ASSIGNMENT
LIEN
SET OFF

9. FUND BASED FINANCE

10. Non-Fund Based Finance

11. Working Capital Cycle

12. 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

13. 6 Cs
CHARACTER
CAPTIAL
CAPACITY
COLLATERAL
CONDITION
COMPLIANCE

14. Clayton’s 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

15. FAQs Distinguish -Cash Credit and Overdraft
Both CC and OD forms part of working
capital finance
CC is granted against moveable goods
(inventory/semi finished goods/goods etc)
OD is granted against paper security
(Fixed deposit receipts/shares/book debts)

16. FAQs KYC: Know Your Customer Know your customer norms are applicable
to all customer accounts. It deals with not
only to identify the customer but also
to understand the activities of the customer,
to ensure that the operations in the customer
account/s is/are for genuine purpose

17. FAQs Fund Based and Non Fund Based limits
Banks grants credit facilities to their clients to carry on with their trade activities.
These facilities are classified as Fund based/Non fund based depending upon the client’s business requirements.
Cash Credit/Overdraft/Loans are examples of fund based limits, where the bank allows the customer to withdraw funds against securities, whereas in respect of non fund based limits like Letters of Credit and Guarantees, the bank extend a comfort level to the clients to enable them to carry on with their business activities

18. THANKS & ALL THE BEST T.M.C.VARADARAJAN TEL : 022-25638965 (R)
(O)
e.mail: