1. JAIIB NOV 01/2006 WELCOME TO VIRTUAL CLASS ROOM SESSSIONS

2. RESERVE BANK OF INDIA  SUPERVISORY & REGLATORY  ISSUANCE OF CURRENCY NOTES  CREDIT CONTROL  EXCHANGE CONTROL  TRANSFER OF FUNDS

3. BANKER-CUSTOMER RELATIONSHIP DEBTOR-CREDITORDEBTOR-CREDITOR CREDITOR-DEBTORCREDITOR-DEBTOR AGENT-PRINCIPALAGENT-PRINCIPAL LESSOR-LESSEELESSOR-LESSEE BAILEE-BAILORBAILEE-BAILOR

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

5. BANKER’S DUTIES & RESPONSIBILITIES PAYING BANKER PAYMENT OF CHEQUES PAYMENT IN DUE COURSE APPARENT TENOR PAYMENT IN GOOD FAITH WITHOUT NEGLIGENCE NEGOTIABLE INSTRUMENTS

6. CHEQUES BEARER ORDER CROSSED OPEN

7. NEGOTIABLE INSTRUMENTS  BANKER’S DUTIES & RESPONSIBILITIES  C0LLECTING BANKER  COLLECTION OF  CHEQUES HOLDER IN DUE COURSE CONSIDERATION TITLE IBEFORE MATURITY

8. WORKING CAPITAL OPERATING CYCLE RAW MATERIAL SEMI FINISHED PRODUCTS FINISHED PRODUCTS CREDIT SALES BILLS PAYABLE BILLS REALISED CASH

9. DEPOSIT ACCOUNTS DEPOSITS CURRENTSAVINGSFIXEDRECURRINGFLEXICERTIFICATE

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

11. CHARGES HYPOTHECATIONHYPOTHECATION PLEDGEPLEDGE MORTGAGEMORTGAGE ASSIGNMENTASSIGNMENT LIENLIEN SET OFFSET OFF

12. FUND BASED FINANCE LOANS & ADVANCES CASH CREDIT OVERDRAFT RETAIL FINANCE TERM FINANCE BILLS FINANCE

13. Non-Fund Based Finance BANK GUARANTEE CO- ACCEPTANCE OF BILLS LETTERS OF CREDIT

14. CAMELS - MODEL CAMELS - MODEL Capital AdequacyCapital Adequacy Asset QualityAsset Quality ManagementManagement EarningsEarnings LiquidityLiquidity Systems & ControlSystems & Control

15. 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

16. 6 Cs CHARACTER CHARACTER CAPTIAL CAPTIAL CAPACITY CAPACITY COLLATERAL COLLATERAL CONDITION CONDITION COMPLIANCE COMPLIANCE

17. 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

18. ALL THE BEST & THANK YOU  T.M.C.VARADARAJAN  TEL : 022-25638965 (R)  022-66364206 (O)  e.mail: t.varadarajan@scotiabank.comt.varadarajan@scotiabank.com  tmc_varadarajan@yahoo.co.intmc_varadarajan@yahoo.co.in