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Banking Law

BANKING LAW

Banking & Negotiable Instruments

COMPLETE STUDY NOTES

Karnataka State Law University (KSLU) • IV Semester • Optional-II

How to use these notes

These notes follow the KSLU Banking Law syllabus and cover the development of banking, the Banking Regulation Act 1949, the Reserve Bank of India, the Deposit Insurance Corporation Act 1961, the banker–customer relationship, the Negotiable Instruments Act 1881, and recent trends in e-banking.

Bold navy terms are definitions; maroon italics are leading cases; key Acts and section numbers are given throughout. Pair with the Revision Sheet and Model Answers.

Syllabus Map — KSLU (5 Units)

Unit

Syllabus topics

Covered in

Unit I

Nature & development of banking, indigenous banking, law relating to banking companies (controls, suspension, winding up)

Topics 1–2

Unit II

Banking Regulation Act 1949, RBI (functions, credit/exchange control), Deposit Insurance Corporation Act 1961

Topics 3–5

Unit III

Banker–customer relationship (lien, secrecy, special customers, consumer protection/ombudsman)

Topics 6–8

Unit IV

Negotiable Instruments Act 1881 (cheque, endorsement, holder in due course, paying & collecting banker)

Topics 9–12

Unit V

Lending by banks & recent trends (e-banking, ATM, internet banking, cards)

Topics 13–14