Principle and Practices

8/12/2019 Principle and Practices

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2 nd

Edit ion

~

~INDIAN INSTI TU TE OF BAN KIN G & FINA NCE

MACM ILLAN

I Lupyn I' I I fI II


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Ij INDIAN INSTITUTE OF BA NKING & FINANCE. MUMB AI. 2 005. 2008

(This book bas b n !" b#ish d b$ Indian Ins%i%"% o&Bankin' & Finan . ) *+ission o&%hIns%i%"% is ss n%ia# & o** !*od" %ion o&an$ ! o*%ion o&%his book . Th ,i - s !* ss d

h * in a* no% n ssa*i#$ %h , i - s o&%h Ins%i%"%./A##*i' h%s* s *, d. No !a *%o&%his ! " b#i a%ion +a $ be * !* od" d o*%*ans+ i%%d in an$ &o*+ o* b$ an $ + ans -i%ho"% ! *+ission. An$

! *son -h o do s an$ "na"%ho*is d a %in * #a%ion %o %his !"b#i a%ion+ a$ be #iab# %o * i+ ina# !* os "%ion and i, i# #ai+ s & o* da+ a' s.

F ir st ed it ion. 2005Second editi on , 2008 Re pr int ed, 200 8, 2 009' (l7trl ce).

MACMI11AN ) UB1I S E3S I NDIA 1I4 44TED

Ch nnai K o#ka%a Ban'a #o* Bho ! a# Chandi'a *h N -D #hi Coi+ba %o* C" "a k " b#i $d *abad 6ai ! " * 1 UC7 40 9 Mad "* ai M" + bai Na'! " * )a%na ) " nSi#i'" * i Thi*", anan%ha !"* a+ Visk ha pata na m.Co+ ! ani s and * !* s n%a%i, s %h* o" ' ho"%%h - o* #d

ISB N 40 : 02;0


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This book is + an* &o* d" a%iona# and # a*nin' !"*!os s . Th a"%ho*(s/ o&%h book has*ha, %ak n a##* asona b# a* %o ns"* %ha%%h< on%n%s o&%h book do n %, io#a%an$ is%in' o ! $* i' h%o* o%h * in%## %"a# ! * o! *%$ *i'h%s o& an$ ! * son in an$ manne r - ha%so , * . 0 %h , + %h a"#ho*(s/has#ba b n "n ab# (0 %* a k an$ so" * and i&an$ o ! $*i'h %has b n Inad, *%n%#$ in& * in' d. ! # as no%i&$%h ! " b#ish *in ritin( &o* o** %i,a *oon. .

)*"pyri(h)e+ materta)


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PAPER 1 , PRINCIP' ES & PRACTICE OFBANKING

Th andida% s -o"#d b ab# %o a " i* an in


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) a$+ n% andCo## %ion o&Ch "


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O! nin' o& A o"n%s &o* 9 a*io" s T$! s o& C" s%o+ * s < Mino*s < 6oin%A o"n% o#d*s < UF Fi*+ s ( / ! a$ %o 3a sh -i%ho"% an$ * s!onsi bi#i%$ o& bank (d/ as k 3 a sh %o b*in' his ! a* n%s( / S %ion 2= N.I. A % 4884 do s no% a##o- +ino* %o * i, !a$+ n%

40. A h " d*a-n &o* 3a k"+a* o* o*d * is s%o# n. Th %hi & +ad ndo*s + n% as 3a k"+a* on %h

h " in his &a,o"* . Th h " is !* s n% d in # a*in' and !aid b$ bank. T*" o-n * #a% * on s n%# 'a# no%i %o bank.ha% is %h #iabi#i%$ o& %h bank

(a/ %h !a$in' bank - i##' % !*o% %ion "nd * N.I. A %(b/ &o*' *$ do s no%'i, an$ *i' h%s %o bank h n #iab# ( / "nd *s %ion85 %h !a$in' bank is #iab#(d/ "nd *s %ion 4;4 %h !a$in' bank is #ia b# .

n. A&% * #os o& b"sin ss ho"*s b$ 4.;0 h*s . %h a o"n% ho#d * hi+s#& a,ai# d !a$+ n%. A% .45 !.+ . (a&% * #os o& 4 5 h*s/ in o+ %a a%%a h+ n% o*d * is * i, d b$ bank. ha% -o"#dbe %h#iabi#i%$ o& !a$in' bank(a/ ! a$+ n%is +ad in d" o"*s and as !a$+ n% is d bi%ab# n % da$ bank is !* o% % d.

(b/ ! a$+ n% is no% ind" o"*s sin !aid a&%* * asonab# %i+ (i. .4.;0 h*s. #a% &o*%oda$/ .( / a%%a h+ n% o* d * -i## b && %i, a&%* bank s *i'h% o& #i n o, * %h#a% !a$+ n% bank sho"#d

a!!*oa h %h "s%o+ * %o ' % %h o*d * han' d %o n % da$.

42. 3i% sh iss" d a h " at ;:;0 !.+. (on ho"* a&% * #os o& b"sin ss ho"*s o& %h bank/%o Sh"bha.Sh"bha a ! !*oa h d %o %h bank and on * " s% !aid %h +on $ a% :00 !.+. as # a% !a$+ n%3i% sha**i, d %o %h bank and s%o!! d !a$+ n% o& h " iss" d %o Sh"bha a% :;0 !.+. on %h sa+ da$.

ho is #iab# &o* #oss(a/ )a$+ n %a&%* b"sin ss ho"*s is no% a !a$+ n% in d" o"*s h n bank i s #iab# S %ion 40

N.I. A %(b/ ) a$+ n % , n %ho"'h a&% * b"sin ss ho" *s b"% -i%hin bankin' ho"*s is ! *o% %d "nd *S %ion

; 4.


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+/1 OB*ECTI ! ES

A s%"d$ o& %his "ni% -i## h #! $o" %o "nd *s%and %h on !%s o& +anda% !o- * o& a%%o*n $ 'a*nisho*d * bank * s #i n and *i'h% o& s %


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(d/ )LA ho#d * +" s%si'n as) * !*o SdL7 Cons%i%"% d A%%o* n $

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HfG A d as ds * di% a o"n% and a " s%o+ *s d bi% a o"n% anno% b o+ bin d.H(G A"%o+ a%i *i' h% o&s %


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(a/ a##'ood s( / so+ 'ood sLs "*i%is

;. Bank * s #i n is !n l ! B (a/ bai#+ n% o& 'oods( / a'* + n%

(b/(d/

( b/(d/

o* d * d 'oods s ! i&i'oodsL s "*i%i s

i+!#i d !# d'an s%o!!a' Co!$*i'h% d +a% *ia#


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h %h * o* d * h " o* b a* * h " : An o*d * h " +a $ b !* s n%d &o* !a$+ n% i%h * b$%h o*i' ina# ! a$ o* b$ %h ndo* s .In s" h as s !*o! * id n%i& i a%ion o& %h !* s n%*sho"#d bask d & o* . F"*%h* i&%h h " on%ains ndo*s + n%s i% +"s% b ns"* d %ha%%h$ a* * '"#a*. A

b a* * b " an b !aid %o an$ ! *son -ho !* s n%s i%.In s" h as s %h !a$in ' bank * n d no%, *i&$ %h ndo* s + n%. o- , * %h si' na%" * o& %h !* s n%* sho"#d b o b%ain d on %h * , *s o&%h h " &o* ha,in' * i, d %h !a$+ n%.

h %h * a+ o" n%s%a%d in - o* ds and &i'"* a* %h sa+ : B &o* +akin' !a $+ n% i% s bo"#d bns"* d %ha%%h a+o"n% s%a% d in -o*ds and &i'"* %a##is. S %ion48 o&%h N.*. A %sa$s %ha%-h n

%h a+o"n%s%a%d in -o*d s and &i' "* di&& * s %h a+o"n %s%a%d in -o*d s sha## b !aid . B"% in ! * a %i%h bank s !* & ** %"*nin' s " h h " s "n! aid - i%h%h * ason a+o"n% in - o* ds and &i'"* di&&* s .

h %h * * oss d: A h " +a $ b * oss d i%h * ' n* a##$ o*s ! ia##$. A o*din' %o %h S %ion 42;o&%b N.*. A %-h n a h " b a*s a *oss i%s&a an addi%ion o& %b- o* ds Pand o+!an$ P o* an$abb* ,ia%ion %h* o& b %- n %-o !a* a## # %*ans, * s #in s o* %-o %*ans, * s #in s s i+!#$ i%h* -i %h

o* - i%ho"% %h- o*ds Pno% n'o %ia b# P %ha%addi%ion sha## b d + d %o b a *ossin' a nd %h h "sha## b d + d %o b * oss d ' n * a##$.

A o*din' %o%h S %ion 42= -h n a h " is *oss d ' n * a##$ %h bank * on - ho+ i% isd* a-nsha## no% !a$ i% o%h*-i s %ban %o a bank * . A o*din' %o S %ion42? a bank * !a$in ' a h "

*oss d ' n * a##$o%h *-is %han %o a bank * sha## b #iab# %o%h %*" o-n *o& %h b " &o* an$ #ossh +a$ s" s%ain o-in ' %o %h h " ha, in' b n so !aid . S" h a !a $+ n% -i## no% b * 'a*d d as

!a $+ n% in d" o"*s and %h bank * -i## #os %h !*o% %ion as ' i, n in S %ion 428 o&%h A %.

.A o*din' %o S %ion 42 o& %h A %- h * a h " b a* s a * oss i%s &a an addi%ion o&%h na+ o&a bank * i%h* -i %h o* -i%ho"% %h-o*d s no% n ' o%iab# %ha% addi%ionsha## b d + d %o b a *ossin'and %h h " sha## b d + d %o b * oss d s ! ia##$ and %o b *oss d %o %ha% bank * .A o*din' %o S %ion42= -h n a h " is *oss d s ! ia##$ %h bank * on -ho+ i% i s d*a-n sha##no% !a$ i%o%h*-i s %han %o %h bank * %o-h o+ i%is *oss d o* his a' n%&o* o## %ion. A o*din' %oS %ion 42? o& %h A %a bank * !a $in' a h " *oss d s ! ia##$ o%h *-is %hao %oa bank * %o- ho+ i %is * oss d o* his a' n%&o* o## %ion sha## b #ia b# %o%h %*" o- n * o&%h b " & o* an$#oss h +a$ s" s%ain o- in' %o %h b " ha,i n' b n so !ai d. S" h a ! a$+ n% -i## no% b * 'a*d d as

! a$+ n%in d" o"*s and %h bank * -i## #os !* o% %ion as ' i, n in S %ion 428 o& %hA %.

A o* din' %o S %ion 42@o& %h A %-h * a h " is *oss d s ! ia##$ %o +o* %han on bank * ! %-h n *oss d %o a##a' n %& o* %h !"*! os o& o## %ion% b ! a$in' bank *s ba##* &"s !a$+ n%

%h * o&.

A o"n%)a $ *ossin' has no% b n d a#% "nd* %h N.4. A %. o- , * in bank in' ! * a %i i% hassi' ni&i an . This %$ ! o& *ossin' i s a di* %ion %o %h o## %in' bank * %o %h * di% o&an a o"n%.Th o## %in' bank -i## no %' % !*o% %ion if i% o## %s %h h " *oss d A o"n %)a $ &o* a

! *son o%h * %han %h ! * son + n %ion d in %h ins%*"+ n%-h %h* !a $ab# %o b a* * o* o*d *. As ! *3B I di* %i, s banks sho"#d no% o## %A o"n% )a$ *oss d h " s &o* an$ ! *son o%h*%han %hna+ d !a$ .

h %h * %h ins%* "+ n% on%ains a n$ ndo* s + n%: A o*din' %o S %ion 45 o&%h N.6. A %- h n %h+ak * o* ho#d * o&a n ' o%iab# ins%*"+ n%si' ns %h sa+ o%h*- is %hao as s" h +ak * &o* %h

!"*!o s o& n ' o%ia%ionon %h ba k o* &a %h* o&o* on a s#i! o& ! a! * ann d %h* %o h is said %o

ndo*s %h sa+ .


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Tho" ' h %h N.4.A % ! *+i%s ndo*s + n%on %h &a o& %hins%*"+ n%%h ! *a %i is on#$ on %h ba ko&i%. Th s#i! o& !a! * ann d %o%h ins%*"+ n%& o* n ' o%ia%ion is a##d a##on' .P P$ H0E G,/9

C"P


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o&%h bank * &o*o## %ion.If an "n *oss d h " -a s %nd * d & o* o## %ion and a&%* %ha% i&%h bank * adds*ossin' %h !*o%%ion -i## no% b a,ai#ab# .

H hi # o## %in'%h h " %h bank *a %d in 'o od &ai%hand - i%ho"%n ' #i' n .

I& %hs ondi%ions a* &"#&i##d %h o## %in' bank * - i## no% bh #d #iab# %o %h %*" o-n * o& %h h " b$ %h * ason o& on#$ ha,in' * i, d s" h !a$+ n%. I&%h kno- $o"* "s%o+ * '"id #in s ha, no% b n& o##o- d -hi# o! nin' an a o"n % and a h " is o## %d &o* %ha%a o"n% %h !*o% %ion -i## no% ba, ai#ab# .

.S %ion 4;4 A ' i, s !*o% %ion %o %h o## %in' bank * - hi# o## %in' a d * a& % i& %h a bo,

ondi%ions a* sa%is&id.

/, ENDORSEMENTOF C E&UES

A o*din' %oS %ion 45 o&%h N.*. A %-h n %h + ak *o* ho#d *o&a n ' o%iab# ins%* "+ n%si'n s %h sa+o%h *-i s %han as s" h +ak * &o* %h !"*!os o& n'o%ia%ionon %h ba k o*& a %h * o& o* on as#i! o& !a! *ann d %h* %o%h$ a* said %o ndo*s %h sa+ .

/, / Kind o; Endo r se>ents


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/ FORGED INSTRUMENTS

Fo* ' d ins%*"+ n%+ ans & o*' in' %h si' na%"* o&%h d* a- *andLo* ndo* s *. na+ o&%h !a$ and a+o"n%o& %h ins%*"+ n%%. Fo* ' * $ in si'na%"* and a#% *a%ions in ! a$ na+ a+ o"n% and da%a* no% !*o% %d"nd * #a-. T b %* ans&* - i## no% b ab#%o n& o* ! a$+ n% &* o+ %h !a*%is %o %h bi## h " and

!*o+i sso*$ no%. And in as h has ob%aind !a$+ n% b$ so+ inad, *% n s" h !a$ + n%an b #ai+ d

& *o+ hi+Lh * . Co!$*i'h% d +a% *ia


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( / S %ion 4;4L4; 8L4 @L4 2 (d/ No n o& %h s( / A##(i/ %o (i,/

;. Th #ia bi#i%$ o& d*a- o & h " is %o +ak !a$+ n% - h n %h* is a,ai #a bi#i%$ o&

(a/ S" &&ii n%&"nds ( b/ )* o ! * #$ a ! !#i a b# &o* !a$+ n%( / 3 "i* d so b$ d* a- * ( d/ A ##o& abo,( / Non

. C* ossin' in a h "(a/ +a$ b on %h &a o* ba k o& h "(b/ +" s%a#- a$s b b %- n %9O!a* a### %*ans, * s #in( / +" s% b on %h &a o& h "(d/ an b an ## d b$ d* a- * as ! * N.*. A %.

5. )* o+i sso*$ No% sLBi##s o& E han' and Ch " a* d &in d as

(a/ %*"s%3 i ! %s ( b/ "di ia# do "+ n %s( / n 'o%ia b# ins%*"+ n%s (d/ do "+ n%s o& %i%# %o 'oods

=. Ch " is ! a$a b# on (a/ d + and ( b/ " san( / &i d & "%"* da% (d/ a&%*si' h%

@. C* ossin' is a di* %ion %o %h bank %o !a$%h h " %o%h !a$ %h* o"' h a bank.(a/ d* a- * ( b/ !a $( / ! a$in' (d/ ! assin'( / o## %in'

8. On o&%h &o##o- in' * ossin' s is no % !*o, id d &o* in %h N./. A %(a/ a o"n % !a$ * ossin' (b/ no%n 'o%ia b# * ossin'( / ' n * a# * ossin' ( d/ s ! ia# *ossin'

?. A %s don hon s%#$ a* a## d a %sdon (a/ - i%ho"% n '#i' n (b/ *ash#$( / + o##i&id (d/ in 'ood &ai%h( / bon o"* #$

40. h n %h ho#d *o&an o*d * h " si' ns on %h ba k o& i%. - i%ho"%s ! i& $in' %h ! * son %o- ho+%h a+ o" n%is.%o b !aid i%is a##d

(a/ & "## ndo*s + n% ( b/ ! a*%ia# ndo* s + n%( / ondi%iona# ndo* s + n% (d/ * s%*i%i, ndo* s + n%( / b#ank ndo*s + n%

44. Sans * o" *s + ans (a/ - i%ho" % & a* (b/ -i%ho"% ! h$si a# %o" h( / -i%ho"%#iabi#i%$%o + (d/ - i%ho"%#iabi#i%$%o ! a$

42. A bank 044 -ho+ a h " is d* a-n b$ %h " s%o+ * is (a/ o## %in' bank ( b/ !a $in' bank ( / ad, isin' b ank (d/ iss"in ' b ank ( / on&i*+in' bank

4;. S %ion4; 4 o& N.6.A % %nds !* o% %ion %o %h


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(a/ o## %in' bank ( b/ ! a$in' bank ( / d*a- bank (d/ n 'o%ia%in' bank

4 . h * a " s%o+ * b$ a # %%* has ad, is d %h bank di* %in' %h bank * no% %ohono"* L!a$ a !a*%i" #a* h " s" h 6 %%*is a## d

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/+ *OINT ACCOUNT OLDERS

A oin% a o"n% is an a o"n% o! n d b$ % 9Oo* +o* ! * sons. hi# o! n in' %h a o"n%ana o"n%o! nin' & o*+ sho"#d b si'n d b $ a## %h a o"n%ho#d * s. Ins%*"%ions & o* o! *a%in' %ha o"n% +a$ b an$on o& %h & o##o-in' :

(a/ i%h * o*s"*,i,o* ( b/ bo%h oin%#$ ( / & o*+ * o*s"* ,i, o* .

In %h abs n o& an$ ins%*"%ion &o* o! * a%in' %h a o"n% %h o! * a%ion -i## b b$ aU % b a o"n%ho#d * s oin%#$. I&an$ han ' is * " i* d in o! *a%iona# ins%*" %ions b$ an$on o* +o* o& %h a o" n%ho#d *so* if an$on o* +o* o&%h a o"n%ho#d * s d si* %o * , ok %h ins%*" %ions a#* ad$ 'i, ns" h +odi&i a%ion o* * ,o a%iono&%h ins%*"%ions a#* ad$ on * o*d sho"#d be si' n d b$ a## %ha o"n% ho#d * s. o- , * an$ o& %h + an s%o ! %h !a$+ n% o& a h " iss" d b$ an$ o %h * oin%a o"n%ho#d *. Th ins%*"%ions &o* o! *a%ions in %h a o"n% -i##s%and o"n %*+and d in as s o& insani%$

inso#, n $ d a%h o& an$ o& %h oin% ho#d * s and o! *a%ions in %h a o"n% -i## b s%o!! d.Rules for Claim of Account

(a/ On %h d a%h o& an$ o& %h oin% a o" n%ho#d *s %h s"*,i , o*s a* n%i%# d %o %h -ho# amount-(b/ N o+ina %ion an b n%*%ain d & o* !a$+ n%so& ba#an in %h as o&d a%ho& aU%hoin% a o"n%

ho#d * s.( / No *i' h% o& s % o&& an b * is d in %h as o&a oin% a o"n % & o* %h a+o"n%s d" %o %h bank in

an indi , id"a# a!a i%$.(d/ A d !o si% +ad b$ a ind" o& his +on $ oin%#$ - i%h his -i& o* an$ o%h* ! * son !a$ab# %o i%h*

o* s" *, i,o * do s no%Onhi s d a%h ons%i%" % a 'i& % b$ hi+ %o%h o%h* ! * son. Th d !o si% a+ o"n%

in %h a bs n o&an$%hin' %o %h on%*a*$sho"#d b !* s"+ d %o b #on' %o %h h"s band and sho"#d%h* &o* !ass on %o %h# ' a#h i* s o& %hh" s band in #"din' %h -i& -h o is %h s"*,i , o*.

/ INDU UNDI!IDED FAMILY < UF =

In a UF %h b"sin ss is inh *i%ab# . h * a ind" di s # a,in' a b" sin ss i% !ass s on %o %h# 'a#h i* s. If h # a, s +a# hi#d* n i% ds nds %o %h+ and %h !*o! *%$ b o+ s a ; D# ! * o! *%$. Th+ +b * s o& %h& a+i# $ a* a## d o!a* n *s and #ds% +a# hi#d is %h +ana' * o* %h9arla . h nan a o" n% is o! n d in %h na+ o& a UF a## %h ad" #% ++b * s ha, %osi' n , n %ho"'h %h 9arta- o"#d o ! *a% on %h a o"n %. h n %h b" sin ss is a n s%* a# %h o ! a* n * s a* #ia b# %o %h % n%o&%h i*sha* in %h &a+i#$ !*o! *%$and no ! * sona# #iabi#i%$.

Rules for "perations

(a/ Th 9arla has an i+ !#i d a"%ho*i%$ %oa,ai# #oan and "% %h n ssa*$ do "+ n%s. To b on a sa& *sid %h #oan do "+ n%ssho"#d b si' n d b$ a## + ad"#% +a# ++ b * s.

(b/ Th 9arla has %h !o- * %o %*ans& *an a ss % ! *o, id d i% is +ad &o* a # ' a# n ssi%$ o* &o* %h b n &i%o&%h s%a% .

( / Th b"*d n o& !*o, in' # ' a# n ssi%$ *s%s -i%h %h %* ans& * .(d/ Na+ s o&+a# +in o* o!a* n * s s bo"#d b k !% on * o*d and %h i* ' "a*dians +" s%si'n %h -

do "+ n %son %hi* b ha#& .( / i %hd*a-a# o& on o& %h o!a* n * s do s no% !"% %h is% n o& %h&i*+ in o!a*d$.


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(&/ hi# o! nin' + a o"n% and on %h h " s iss" d %h "s o& %h -o*d UF is ss n%ia#a#on' -i%h%h na+ o& %h "ni%in o*d *%o' i, no%i %o %h !"b#i %ha%%h d* a- * is si'nin ' &o* %h UFand no%& o* %h ! * sona# ass %s.Th a o"n %is o! *a% d b$ %h 9arla ( ad o& %h &a+i#$/. If i% onsis%s o& ,a*io"s b* an h s %h o%h *+a o* +a# o! a* n * s a* a##o- d %o o! *a%044 %h a o"n%s.

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14#

(b/ 6oin% a o"n%s -i%h di&& * n% o! *a%iona# ins%*" %ions ,iR. i%h * o*s"*,i,o* &o*+ * o* s"*,i, o* oin%#$.

( / A o"n%s o& ind" "ndi, id d & a+i #$ -i%h 9arr a o! *a%in' %h a o"n%. A## %h +a o* +a# + +b * s

si'na%"* s a* ob%ain d and on %h d a%h o& %h Ka*%a%h n % in #in is onsid * d as Ka*%a o& %UF .(d/ )a*%n * shi! a o"n%s a* o! n d and %h is%in' a o"n%s b o+ ino! *a%i, L #os d d"

ad+issionJ* %i* + n%Lda%h o& an$ !a*%n *.( / A o"n%s o& #i+i% d o+!anis an b o! n d -i%h o!i s o& + +o*and"+La*%i #s o&asso ia%ionJ

ba#an sh %sL *%i&i a% o& in o*!o*a%ionL *%i&i a% o& o++ n + n% o& b"sin ss andso#"%ion%o o! n n - a o"n% in a bank .

(&/ T*"s% a o"n%s a* o! n d -i%h %*"s% d dL *%i&i a% o& * 'is%*a%ion iss" d b$ %h Cha*i%Co++is sion * L*so#" %ions %o o! na# .

('/ Coo! *a%i, so i %i s an a#so o! n bank a o"n%s -i%h !"b#i L!*i,a% banks o%h * %han oo! *a

bank s. ) *+ission i s * "i* d &*o+ *' is%* a*s o& oo! *a%i, so i %is - i%h +a i+"+ i#in' on ba#an s.(h/ B ank a o"n%s a* a#so o! n d &o* 'o , *n+ n%L!"b#i bodi s &o* * i,i n' +on i s and !a$+ n%s on

b ha#& o& on *n d d !a*%+ n%s.

/ C ECK YOUR PROGRESS

4. In%*od" %ion in o ! nin' a o"n %sis(a/ O!%iona# ( b/ Co+!" #so*$( / Dis * %iona* $ (d/ ai , d &*o+$ a* 200;.

2. A +in o*& o* -ho+ %h o"*% has a!!oin% d a '" a* dian a%%ains +a o*i%$ on o+!# %iono& (a/ 2 4 $ a*s ( b/ 48$ a* s T ( / 4 5 $ a*s (d/ 4@ $ a* s.

;. Th +ini+"+ n"+b * o& + +b *sin a !"b#i #i+i%d o+!an $ is(a/ 50 ( b/ 20 ( / 40 (d / @ ( / no #i+i%.

. Go, *n+ n% o+!ani s a* %hos o+!ani s -h * %h 'o , *n+ n% ho#ds a%# as% sha* s.(a/ 54 ! * n% ( b/ 2= ! * n%( / 400 ! * n% (d/ No s" h * "i* + n%

5. D # ' a%iono& !o- * s "nd *a %*"s% is (a/ )o ssib# (b/ No% !ossib#

( / B n &iia*$s ! *+iss ion (d/ Cha*i%$ o++ission * s ! *+i ssion.=. hi h do "+ n% s%i!"#a%s in%*na# *"#s o&a o+ !an$(a/ M +o* and" + ( b/ 3 so#"%ion ( / A*%i# s (d/ D #a*a%ion( / Co+! ani s A %4?5=.

@.Mino* s a o"n% an b o! n d in %h '"a*dianshi! o & (a/ Mo%h * and Fa%h *( b/ Mo%h* o* Fa%h* ( / G*and+o%h * (d/ E #d *

b*o%h *.

8. T-o o* + o* +ino* s i&d si*o"s o& o! nin' a bank a# in $o" * bank -h %h *%h $ an o ! n(a/ Ei%h *o* S"*, i,o * HbG6oin%#$( / On#$ %-o an oin (d / Canno%

o ! n .


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?. A ind" + ino* ha, in' a na%"*a# ' "a*dian a%%ains +a o*i%$ on o+!# %iono& HaG48 $ a*s (b/ 24 $ a*s ( / 4.;$ a* s(d/ 4; $ a* s !*o, id d h has !o- * o& "nd * s%andin'.

Co!$n'h% d+a% *iaP P 6H0EGU//


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is di* %#$ * di%d %o %h a o"n%o&%h b n &iia* $ - i%h ano%h * b* an h. D*a- b * an h s a&& o*d* di% o&+ai# %*ans&* %o " s%o+ * sa o"n%- i%hin a +a i+ "+ ! *iod o & s , n da$s & *o+ %h da%o&

* i!% o& &"nds. Th on !% o& +ai# %*ans& * bas no * # ,an -h n %h * +i%%in' b* an h and %h

* i, in' b*an h a* b*o"'h% "nd * o* bankin' so#"%ion. Th +ai# %*ans& * is s n% b$ %h iss"in' b*an b di* %#$%o %h d*a- b*an h on %h sa+ da$ b$ !o s%.

, / TELEGRAP IC TRANSFER

Th 3 s *, Bank has in%*od" d a s$s%+ a## d PTh 3 s * , Bank o& India Na%iona# E# %*oniF"nd s T* ans&* S$s%+ P -hi h i s * &** d %oas NEFT S $s%+. Th %* ansa %ions "nd * %his s$s%+ +a$be +ad &o*a+o"n%s in #"si, o& !aisa o+!on n% -h n %h* is no "!! * , a#" #i+i% &o* !"%%in'%h*o"'h an indi,id"a# NE FT %*ansa %ion. Th s$s% + & a i#i%a%s an &&i i n%s "* ono+i a#* #iab# and !di%io" s s$s%+ o& &"nds %* ans& * and # a*in' in %h bankin ' s %o*. Th NEF& s$s% +a#so * #i , s %h s%* ss on %h is%in' ! a! * bas d &"nds %*ans& * and # a*in' s$s%+ . Th * +i%%in'

b*an h !* !a* s a s%*"%"* d &inania# + ssa'in' so#"%ion(SFMS/ + ssa' and s nds i% %o i%s s *, in%* & o* NEFT. Th 3BI a% %h # a*in' n%* so*%s %h%*ansa %ions bank


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, /.SAFE DEPOS IT LOCKER S

Sa& d ! osi% #ok * is a &a i#i%$ %nd d %o %h "s%o+ * s %o na b# %h + %o k ! %h i* , a#"a b# sJdo "+ n%s %. in a s ! ia##$ d si' n d #o k *044 !a $+ n% o& ! * s *i b d * n%a#s. Co!$*i'h% d+a% *ia


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(d/ !a$+ n% o& a & as a ! !#i ab# &o* iss" o& s" h d"!#i a% DO ( /a##%h abo,

;. On o& %h& o##o-in ' s %a%+ n%s is no%%* " - i%h* 'a* d %o a #o k * &ai#i%$in %h bank .

(a/ In %h as o& a so# hi* * o& a sa& %$ #o k * no+ina%ion an b +ad in &a,o"* o& on#$ onindi, id"a#.

(b/ A #o k * anno% b hi* d b$ #i+i% d o+ ! ani s s! i&i d asso ia%ions and so i %i s %.( / In %h as o& d a%h o& a so# #o k *


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A/40

ins%*" %ions o& 3BI -i%h * 'a* d %o *%ain !"*!os s %ha% !*ohibi%%h iss" o& bank '"a*a n% s an+ a#so / %%nd d #iabi#i%$ ! *iod %ha% has b n o asion d ons " n% %o a+ nd+ n% o& S%ion 428 o& Indian Con%

A % -i%h * s! % o& '"a*an% s iss" d in &a,o"* o& %h 'o, *n+ n% d !a*%+ n%s.

/5 .1.0 Letters of Cre+it H L*C G

A 1 %% *o& C* di% /! is a bindin' do "+ n%%ha% a b"$ * o& 'oods an * " s%&*o+ %h bankin o*d * %o'"a* an% %ha% %h !a$+ n%&o* 'oods -i## b %*ans& ** d %o %h s ## * . In o*d * &o* %h !a$+ n% %o o "* %hs ##* has %o !* s n%%h bank -i%h n ssa*$ do "+ n%s as ! * 1i C % *+s.

hi# san %ionin' %h #%%* o& * di%#i+i%s & o* %h !"* has o& *a- +a% *ia#s %h bank * has %o o## % &o##o-in ' !a*%i "#a* s:

(a/ 9a#" o& *a- +a% *ia#s ons"+ d in %h ns"in' $ a* as !*o %d(b/ 9a#" o& *a- +a% *ia#s %ha% a* !"* has d on * di% o"% o& %h abo,( / Ti+ %ak n &o* ad, isin' %h # %%* o& *di% %o %h b n &iia* $(d/ Ti+ &o* shi!+ n% and %h onsi'n+ n% %o * a h %h "s%o+ * s d s%ina%ion.( / C* di% ! *iod ("san ! *iod/ a'* d b %- n %h b n&i ia*$ and %h "s%o+ * (&/ C* di% ! *iod !*o % d and * kon d &o* a# "#a%ion o& %h +a i+"+ ! *+issib# bank &inan (M)B

-hi # san %ionin' %h &"nd d #i+ i%s %o %h bo**o- * "s%o+ *

On %h abo, in&o*+a%ion is a,ai#ab# %h bank * an ass ss %h # %% *o& * di% #i+i% as!#ain d in %h& o##o-in ' i##"s%*a%ion:

sti"atio nI. 9a#" o& *a- + a%*ia# ons"+!%ion !* o % d:3s. ; =00 #akh2. 9a#" o&*a- +a% *ia# (%o b / bo"'h% on * di%:3 s. 2 00 #akh;. Ti+ & o* ad,isin' 1iC:40 da$ s

. Shi!+ n% %i+ : 20 da$ s5. C* di% ! *iod a'* d "!on b %- n %hs ## * and %h "s%o+ * O3 %h * di% ! *iod !*o % d as a,ai#ab#

CMA &o*+a% onsid * d& o* a# "#a%ion o&M)B F -hi# san %ionin ' &"nd d#i+i%s -hi h , * is # ss: ; 0 da$s

Ti+ * "i* d& o* on $ # o& o! * a%ion o&;1 -i## b 40 20 ;0 =0 da$s.

Ass"+in' ;=0 da$ s in a $ a* %h* o"#d b = * o%a%ionsL $# s ina $ a*. I&%h * a- + a%*ia# ons"+ d %o b bo"'h% on * di% is3 s. 2 00 #akh in a $ a* %h #i+i% o& 1iC ! ** o%a%ionL $# -i## -o*k o"% %o.

3s . 2 00 #akh 3 s. 00 #akh=

Th # %%*o& * di% #i+i % * "i* d' i, n %h abo, si%"a%ion-o"#d b 3 s. 00 #akh A bank * sho"#d ns"*%ha%%h s%o k s !*o "* d %h*o"'h%h ;1 a* %ak n "n d * h$!o %h a%ion and a* no%in #"d d in %h s%o k sd #a* d as s "*i%$ &o* %h &"nd bas d#i+i%s ' *an% d %o %h"s%o+ *.If %h ;1 #i+i% issan %ion d& o* !"* has o& a!i%a# 'oods %h sa+ is %ak n "nd * a h$!o%h a%ion ha* ' b$ %h bank *.

/5 .2 :"R%IN C PI! L N !ER= L" NS


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!once#t of =orking !a#ital

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(ii/ 3 # as a % +!o*a*$ #i+i% "i, a# n% %o %hsho*%&a## in N C &o* asho*%%*+ sa$ on "a*%* inaddi%ion %o %h d"#$ass ss d #i+i%s. In %his as %h sho*%


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( / Th o! nin' a sh ba#an &o* %h&i*s% +on%h is ad " s%d a'ai ns% %h ashs"*! #"sLd &i i% %ha% is' n *a% d d"*in' %h +on%h. Th ad "s%d &i' "* is %h #osin' ba#an a% %h nd o&%h &i*s%+ on%h -hi h b o+ s %h o! nin' ba#an &o* %hn % +on%h,iR. %h s ond +on%h.

(d/ A ash s" *!#"s ' n *a% d d"*in' a +on%h * s" #%s in a hi' h * #osin' ash ba#an ,is


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40. T *+ #oans + an 1oan s(a/ ) a$ab# a&% *on $ a*%o %n $ a*s(b/ 3 ! a$+ n%s a* don in ins%a#+n%s

( / T *+ #oans a* " %i#is d &o* a" isi%ion o& &i d ass %s(d/ A##o&a bo,( / On#$ (i/ and ( ii /

44. o* kin' a!i %a#n ds a* s%i+a %d b$(a/ O ! *a%in' $ # + %hod (b/ )* o %d %"*no, *+ %hod( / Cash b"d' % + %hod (d/ An$ o& a bo,( / Non o& a bo, .

42. Di&&* n b %- n ash b" d' % and ash o- (a/ Ca sh o-d a#s -i %h ash and n on< ash &"nds.(b/ Cash b"d' % da#s - i%h ash %* ansa %ions on#$.

( / Cash o- s%a%+ n%sa* ' n *a##$ &o* "a*% *#$ o* ha#&


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)*o ,isio nin' No*+s Ass %1 iabi#i%$Mana' + n% (A1M/ 1oan 3 ,i - M hanis+ (13M/ Do" b%&"#Ass % 1oss Ass %" a*%*#$ )*od " %ion 3 o*d ( )3 /.

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o+!" %in' ! *& o*+an " nd * %h 48 ! * n%%a*' %. o- , * a##a'*i "#%"* a# ad,an s " nd * %ha% 'o*i s di* %and indi* %-i## b * k on d in o+! " %in' o& ! *&o*+an "nd * %h o, * a##

!*io *i%$ s %o* %a*' % o& 0 !* n%o&A NBCO* * di% "i,a # n% a+o" n% o& o&& ba#an sh % !os"*

- hi h , * is hi'h * . (No %a*' % &o* &o* i'n banks/S*!ll nt erpri se Ad !n ces Ad,an s %o s+a## n%*!*is s s %o* a* %ak n in onsid *a%ion&o* o+ ! "%in' ! *&o*+an "nd * %h o, *a## ! * io*i%$ s %o*%a*' % o& 0 ! * n%o& ANBC o* * di%

"i,a# n%.a+o"n % o&o&& ba#an sh % ! os"* -hi h , * is hi'h *. (Fo* & o* i'n banks i% is 40 ! *n% o& ANBC o** di% "i, a# n%a+o " n%o& o& & ba#an sh % !os" * -hi h , * is hi'h * ./

@icro nt erpri ses w it&in Sin!lE nte rp ris es Sec :or

(i/ Fo*%$ ! * n% o& %o%a# ad,a n s %o s+a## n% *!*is s s %o* sho"#d ' o %o +i * o (+a n" &a%"*in'/n% *!*is s ha,in' in, s %+ n% in !#an% and +a hin *$ "! %o 3 s. 5 #akh and +i *o (s *,i /n% *!*is s ha,in' in, s%+ n% in "i !+ n%" ! %o 3 s. 2 #akh

(ii/ T- n%$ ! * n% o& %o%a# ad, an s %o s+a ## n%*!* is s s %o* sho"#d 'o %o + i * o(+a n"& a %"*in'/ n% *!*is s - i%hin, s%+ n% in !#an% and+ a hin *$ abo, Rs - 5 #akh an d "! %o3 s. 25 #akh and + i *o(s *,i / n% *!*is s -i%h in, s%+ n% in "i!+ n% a bo, 3 s. 2 #akh and" ! %o 3s. 404akh .

Th" s =0 ! * n% o& %h s+a## n% *!*is s.ad,an s sho" #d 'o %o %h +i *o n% *!*is s.Th %a*' % &&o* i'n bank s is %h sa+ as %ha%&o* do+ s%i banks.

Ad !n ces to > e! er S ect ion s T n ! * n% o& ANBC o* * di% "i,a # n%a+o"n% o& o&& ba#an sh %!os"* -hi h , * is hi'h *. No %a*' %.&o* &o* i'n banks.

Di er enti!l R!t e o ntere st Sc&e* e On ! * n% o& %o%a# ad,ans o"%s%andin'as on %h nd o& %h

!* ,io"s $ a*. It sho"#d b ns"* d %ha% no% # ss %han &o*%$ ! * n% o& %h %o%a# ad,an s '*an% d "n d *D3I s h + 'o %o s h d"# d as% Ls h d"# d %*ibs. A% #as%%-o


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48. RECENT DE!ELOPMENTS IN PRIORITY SECTOR LENDING

D"*in' %h b"d' % s ! h 200=


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Principle and Practices

Documents