JAIIB NOV 01/2006

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JAIIBNOV 01/2006

• WELCOME TO VIRTUAL CLASS ROOM SESSSIONS

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RESERVE BANK OF INDIA

• SUPERVISORY REGLATORY
• ISSUANCE OF CURRENCY NOTES
• CREDIT CONTROL
• EXCHANGE CONTROL
• TRANSFER OF FUNDS

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BANKER-CUSTOMERRELATIONSHIP

• DEBTOR-CREDITOR
• CREDITOR-DEBTOR
• AGENT-PRINCIPAL
• LESSOR-LESSEE
• BAILEE-BAILOR

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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

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NEGOTIABLE INSTRUMENTS

• BANKERS DUTIES RESPONSIBILITIES
• PAYING BANKER
• PAYMENT OF CHEQUES

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CHEQUES
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NEGOTIABLE INSTRUMENTS

• BANKERS DUTIES RESPONSIBILITIES
• C0LLECTING BANKER
• COLLECTION OF
• CHEQUES

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WORKING CAPITAL OPERATING CYCLE
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DEPOSIT ACCOUNTS
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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

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CHARGES

• HYPOTHECATION
• PLEDGE
• MORTGAGE
• ASSIGNMENT
• LIEN
• SET OFF

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FUND BASED FINANCE
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Non-Fund Based Finance
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CAMELS - MODEL

• Capital Adequacy
• Asset Quality
• Management
• Earnings
• Liquidity
• Systems Control

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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

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6 Cs

• CHARACTER
• CAPTIAL
• CAPACITY
• COLLATERAL
• CONDITION
• COMPLIANCE

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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

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ALL THE BEST THANK YOU

• T.M.C.VARADARAJAN
• TEL [phone] (R)
• 022-66364206 (O)
• e.mail t.varadarajan_at_scotiabank.com
• tmc_varadarajan_at_yahoo.co.in