Chapter3providesacomprehensiveoverviewoftheorganicmoleculesessentialforlife,layingthegroundworkforunderstandingtheirbiochemicalproperties,biologicalfunctions,andcontributionstocellularandorganis
malbiology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.Ifyouhavespecificquestionsab
outanyofthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySylviaMaderandMichaelWindelspecht,titled
"InsidetheCell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**IntroductiontoCells**:Definitionofcellsasthefundament
alunitsoflife,theirdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcells,including:**CellMembrane**:Structure,composition(lipidbilayer,pr
oteins),functionsincelltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cytoskeleton,ribosomes).**Nucleus**:Structure,functions(DNAstorage,transcription,r
egulationofcellactivities).**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmicreticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**ProkaryoticCells**:Com
parisonofprokaryoticandeukaryoticcellstructures,emphasizingdifferencesinorganelles,geneticmaterial(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFunction**:Integrationofcellu
larcomponentsandorganellestosupportcellularfunctionssuchasmetabolism,proteinsynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTransport**:Mechanismsofcellulart
ransport,including:**PassiveTransport**:Diffusion,osmosis,facilitateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**:Phagocytosis,pinocytosis.**Cell
Communication**:Overviewofcellularcommunicationprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Transmissionofsignalswithincells(e.g.,s
econdmessengers).**CellSignalingPathways**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthecellcycle(interphase,mitosis,cytokinesis
)andtheirregulation.Importanceofcelldivisioningrowth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddivision.Causesofcancer(mutations,environme
ntalfactors),mechanismsoftumorformation,andapproachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(pluripotent,multipotent),andpotentialapplicationsi
nregenerativemedicineandresearch.**MicroscopyandCellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
STUDY MATERIAL
PROFESSIONAL PROGRAMME
BANKING LAW
AND
PRACTICE
MODULE 3
ELECTIVE PAPER 9.1
i
, ICSI House, 22, Institutional Area, Lodi Road, New Delhi 110 003
tel 011-4534 1000, 4150 4444 fax +91-11-2462 6727
email website www.icsi.edu
i
© THE INSTITUTE OF COMPANY SECRETARIES OF INDIA
TIMING OF HEADQUARTERS
Monday to Friday
Office Timings – 9.00 A.M. to 5.30 P.M.
Public Dealing Timings
Without financial transactions – 9.30 A.M. to 5.00 P.M.
With financial transactions – 9.30 A.M. to 4.00 P.M.
Chapter3providesacomprehensiveoverviewoftheorganicmoleculesessentialforlife,layingthegroundworkforunderstandingtheirbiochemicalproperties,biologicalfunctions,andcontributionstocellularandorganismalb
iology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.Ifyouhavespecificquestionsaboutanyo
fthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySylviaMaderandMichaelWindelspecht,titled"InsidetheC
ell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**IntroductiontoCells**:Definitionofcellsasthefundamentalunitsoflife,thei
rdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcells,including:**CellMembrane**:Structure,composition(lipidbilayer,proteins),functionsince
lltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cytoskeleton,ribosomes).**Nucleus**:Structure,functions(DNAstorage,transcription,regulationofcellactivities)
.**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmicreticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**ProkaryoticCells**:Comparisonofprokaryoticandeuk
aryoticcellstructures,emphasizingdifferencesinorganelles,geneticmaterial(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFunction**:Integrationofcellularcomponentsandorganellestos
upportcellularfunctionssuchasmetabolism,proteinsynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTransport**:Mechanismsofcellulartransport,including:**PassiveTrans
port**:Diffusion,osmosis,facilitateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**:Phagocytosis,pinocytosis.**CellCommunication**:Overviewofcellularc
ommunicationprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Transmissionofsignalswithincells(e.g.,secondmessengers).**CellSignalingPathway
s**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthecellcycle(interphase,mitosis,cytokinesis)andtheirregulation.Importanceofcelldivisionin
growth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddivision.Causesofcancer(mutations,environmentalfactors),mechanismsoftumorformation,andappr
oachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(pluripotent,multipotent),andpotentialapplicationsinregenerativemedicineandresearch.**MicroscopyandC
ellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
Phones
41504444, 45341000
Fax
011-24626727
Website
www.icsi.edu
E-mail
ii
,
Laser Typesetting by AArushi Graphics, Prashant Vihar, New Delhi, and
Printed at Tan Prints/July 2014
BANKING LAW AND PRACTICE
Company Secretaries have a pivot role to play in the Banking and Financial Sector. A Company Secretary can
work as a compliance officer in a banking and financial institution and play an important role in ensuring compliance
to complicated legal, regulatory and supervisory issues all the time, transcending various spheres of banking
operations. So, in order to build the capacity of Companies Secretaries to work as a compliance officer in Banks
and to provide them a specialized knowledge in Banking laws and practice, a paper on Banking Laws and
Practice has been added as an elective paper. The students who want to pursue their career in Banking and
financial sector may chose this subject.
The syllabus and content of this paper has been developed in joint association of Indian Institute of Banking and
Finance and the syllabus covers most of the aspects from gamut of banking. The objective of including this
paper is to give a specialized knowledge of law and practice relating to banking.
Chapter3providesacomprehensiveoverviewoftheorganicmoleculesessentialforlife,layingthegroundworkforunderstandingtheirbiochemicalproperties,biologicalfunctions,andcontributionstocellularandorga
nismalbiology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.Ifyouhavespecificquest
ionsaboutanyofthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySylviaMaderandMichaelWindelsp
echt,titled"InsidetheCell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**IntroductiontoCells**:Definitionofcellsast
hefundamentalunitsoflife,theirdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcells,including:**CellMembrane**:Structure,compositio
n(lipidbilayer,proteins),functionsincelltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cytoskeleton,ribosomes).**Nucleus**:Structure,functions(DNAst
orage,transcription,regulationofcellactivities).**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmicreticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**P
rokaryoticCells**:Comparisonofprokaryoticandeukaryoticcellstructures,emphasizingdifferencesinorganelles,geneticmaterial(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFu
nction**:Integrationofcellularcomponentsandorganellestosupportcellularfunctionssuchasmetabolism,proteinsynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTran
sport**:Mechanismsofcellulartransport,including:**PassiveTransport**:Diffusion,osmosis,facilitateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**
:Phagocytosis,pinocytosis.**CellCommunication**:Overviewofcellularcommunicationprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Tra
nsmissionofsignalswithincells(e.g.,secondmessengers).**CellSignalingPathways**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthe
cellcycle(interphase,mitosis,cytokinesis)andtheirregulation.Importanceofcelldivisioningrowth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddiv
ision.Causesofcancer(mutations,environmentalfactors),mechanismsoftumorformation,andapproachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(plu
ripotent,multipotent),andpotentialapplicationsinregenerativemedicineandresearch.**MicroscopyandCellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
An attempt has been made to cover fully the syllabus prescribed for each module/subject and the presentation
of topics may not always be in the same sequence as given in the syllabus. Candidates are also expected to
take note of all the latest developments relating to the subjects covered in the syllabus by referring to RBI
circulars, financial papers, economic journals, latest books and publications in the subjects concerned.
Although due care has been taken in publishing this study material, yet the possibility of errors, omissions and/
or discrepancies cannot be ruled out. This publication is released with an understanding that the Institute shall
not be responsible for any errors, omissions and/or discrepancies or any action taken in that behalf.
iii
, Should there be any discrepancy, error or omission noted in the study material, the Institute shall be obliged if
the same are brought to its notice for issue of corrigendum in the e-bulletin Student Company Secretary. In the
event of any doubt, students may write to the Directorate of Academics in the Institute for clarification at
.
There is open book examination for this Elective Subject of Professional Programme. This is to inculcate and
develop skills of creative thinking, problem solving and decision making amongst students of its professional
programme and to assess their analytical ability, real understanding of facts and concepts and mastery to apply,
rather than to simply recall, replicate and reproduce concepts and principles in the examination.
SYLLABUS
MODULE III, ELECTIVE PAPER 9.1: Banking Law and Practice (100 Marks)
Level of Knowledge: Expert Knowledge
Objective: To acquire specialized knowledge of law and practice relating to Banking
Detailed Contents:
1. Overview of Banking System
2. Regulatory Framework and Compliances
A. Provisions of RBI Act 1935, Banking Regulation Act 1949, Prevention of Money Laundering Act, 2002.
B. Government and RBI‘s Powers Opening of New Banks and Branch Licensing Constitution of Board of
Directors and their Rights Banks Share Holders and their Rights CRR and SLR Concepts Cash-
Currency Management Winding up - Amalgamation and Mergers Powers to Control Advances - Selective
Credit Control – Monetary and Credit Policy Audit and Inspection Supervision and Control - Board for
Financial Supervision – its Scope and Role Disclosure of Accounts and Balance Sheets Submission
of Returns to RBI, Corporate Governance.
Chapter3providesacomprehensiveoverviewoftheorganicmoleculesessentialforlife,layingthegroundworkforunderstandingtheirbiochemicalproperties,biologicalfunctions,andcontributionstocellul
arandorganismalbiology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.If
youhavespecificquestionsaboutanyofthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySy
lviaMaderandMichaelWindelspecht,titled"InsidetheCell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**
IntroductiontoCells**:Definitionofcellsasthefundamentalunitsoflife,theirdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcell
s,including:**CellMembrane**:Structure,composition(lipidbilayer,proteins),functionsincelltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cy
toskeleton,ribosomes).**Nucleus**:Structure,functions(DNAstorage,transcription,regulationofcellactivities).**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmi
creticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**ProkaryoticCells**:Comparisonofprokaryoticandeukaryoticcellstructures,emphasizingdifferencesinorganelles,genetic
material(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFunction**:Integrationofcellularcomponentsandorganellestosupportcellularfunctionssuchasmetabolism,prote
insynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTransport**:Mechanismsofcellulartransport,including:**PassiveTransport**:Diffusion,osmosis,faci
litateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**:Phagocytosis,pinocytosis.**CellCommunication**:Overviewofcellularcommunicat
ionprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Transmissionofsignalswithincells(e.g.,secondmessengers).**CellSignalingP
athways**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthecellcycle(interphase,mitosis,cytokinesis)andtheirregulation.Im
portanceofcelldivisioningrowth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddivision.Causesofcancer(mutations,environmentalfact
ors),mechanismsoftumorformation,andapproachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(pluripotent,multipotent),andpotentialapplic
ationsinregenerativemedicineandresearch.**MicroscopyandCellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
3. Legal Aspects of Banking Operations
Case Laws on Responsibility of Paying and Collecting Banker Indemnities or Guarantees - Scope and
Application – Obligations of a Banker - Precautions and Rights - Laws relating to Bill Finance, LC and
Deferred Payments - Laws Relating to Securities - Valuation of Securities - Modes of Charging Securities -
Lien, Pledge, Mortgage, Hypothecation etc. - Registration of Firms/Companies - Creation of Charge and
Satisfaction of Charge.
iv
malbiology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.Ifyouhavespecificquestionsab
outanyofthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySylviaMaderandMichaelWindelspecht,titled
"InsidetheCell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**IntroductiontoCells**:Definitionofcellsasthefundament
alunitsoflife,theirdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcells,including:**CellMembrane**:Structure,composition(lipidbilayer,pr
oteins),functionsincelltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cytoskeleton,ribosomes).**Nucleus**:Structure,functions(DNAstorage,transcription,r
egulationofcellactivities).**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmicreticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**ProkaryoticCells**:Com
parisonofprokaryoticandeukaryoticcellstructures,emphasizingdifferencesinorganelles,geneticmaterial(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFunction**:Integrationofcellu
larcomponentsandorganellestosupportcellularfunctionssuchasmetabolism,proteinsynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTransport**:Mechanismsofcellulart
ransport,including:**PassiveTransport**:Diffusion,osmosis,facilitateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**:Phagocytosis,pinocytosis.**Cell
Communication**:Overviewofcellularcommunicationprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Transmissionofsignalswithincells(e.g.,s
econdmessengers).**CellSignalingPathways**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthecellcycle(interphase,mitosis,cytokinesis
)andtheirregulation.Importanceofcelldivisioningrowth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddivision.Causesofcancer(mutations,environme
ntalfactors),mechanismsoftumorformation,andapproachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(pluripotent,multipotent),andpotentialapplicationsi
nregenerativemedicineandresearch.**MicroscopyandCellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
STUDY MATERIAL
PROFESSIONAL PROGRAMME
BANKING LAW
AND
PRACTICE
MODULE 3
ELECTIVE PAPER 9.1
i
, ICSI House, 22, Institutional Area, Lodi Road, New Delhi 110 003
tel 011-4534 1000, 4150 4444 fax +91-11-2462 6727
email website www.icsi.edu
i
© THE INSTITUTE OF COMPANY SECRETARIES OF INDIA
TIMING OF HEADQUARTERS
Monday to Friday
Office Timings – 9.00 A.M. to 5.30 P.M.
Public Dealing Timings
Without financial transactions – 9.30 A.M. to 5.00 P.M.
With financial transactions – 9.30 A.M. to 4.00 P.M.
Chapter3providesacomprehensiveoverviewoftheorganicmoleculesessentialforlife,layingthegroundworkforunderstandingtheirbiochemicalproperties,biologicalfunctions,andcontributionstocellularandorganismalb
iology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.Ifyouhavespecificquestionsaboutanyo
fthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySylviaMaderandMichaelWindelspecht,titled"InsidetheC
ell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**IntroductiontoCells**:Definitionofcellsasthefundamentalunitsoflife,thei
rdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcells,including:**CellMembrane**:Structure,composition(lipidbilayer,proteins),functionsince
lltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cytoskeleton,ribosomes).**Nucleus**:Structure,functions(DNAstorage,transcription,regulationofcellactivities)
.**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmicreticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**ProkaryoticCells**:Comparisonofprokaryoticandeuk
aryoticcellstructures,emphasizingdifferencesinorganelles,geneticmaterial(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFunction**:Integrationofcellularcomponentsandorganellestos
upportcellularfunctionssuchasmetabolism,proteinsynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTransport**:Mechanismsofcellulartransport,including:**PassiveTrans
port**:Diffusion,osmosis,facilitateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**:Phagocytosis,pinocytosis.**CellCommunication**:Overviewofcellularc
ommunicationprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Transmissionofsignalswithincells(e.g.,secondmessengers).**CellSignalingPathway
s**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthecellcycle(interphase,mitosis,cytokinesis)andtheirregulation.Importanceofcelldivisionin
growth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddivision.Causesofcancer(mutations,environmentalfactors),mechanismsoftumorformation,andappr
oachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(pluripotent,multipotent),andpotentialapplicationsinregenerativemedicineandresearch.**MicroscopyandC
ellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
Phones
41504444, 45341000
Fax
011-24626727
Website
www.icsi.edu
ii
,
Laser Typesetting by AArushi Graphics, Prashant Vihar, New Delhi, and
Printed at Tan Prints/July 2014
BANKING LAW AND PRACTICE
Company Secretaries have a pivot role to play in the Banking and Financial Sector. A Company Secretary can
work as a compliance officer in a banking and financial institution and play an important role in ensuring compliance
to complicated legal, regulatory and supervisory issues all the time, transcending various spheres of banking
operations. So, in order to build the capacity of Companies Secretaries to work as a compliance officer in Banks
and to provide them a specialized knowledge in Banking laws and practice, a paper on Banking Laws and
Practice has been added as an elective paper. The students who want to pursue their career in Banking and
financial sector may chose this subject.
The syllabus and content of this paper has been developed in joint association of Indian Institute of Banking and
Finance and the syllabus covers most of the aspects from gamut of banking. The objective of including this
paper is to give a specialized knowledge of law and practice relating to banking.
Chapter3providesacomprehensiveoverviewoftheorganicmoleculesessentialforlife,layingthegroundworkforunderstandingtheirbiochemicalproperties,biologicalfunctions,andcontributionstocellularandorga
nismalbiology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.Ifyouhavespecificquest
ionsaboutanyofthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySylviaMaderandMichaelWindelsp
echt,titled"InsidetheCell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**IntroductiontoCells**:Definitionofcellsast
hefundamentalunitsoflife,theirdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcells,including:**CellMembrane**:Structure,compositio
n(lipidbilayer,proteins),functionsincelltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cytoskeleton,ribosomes).**Nucleus**:Structure,functions(DNAst
orage,transcription,regulationofcellactivities).**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmicreticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**P
rokaryoticCells**:Comparisonofprokaryoticandeukaryoticcellstructures,emphasizingdifferencesinorganelles,geneticmaterial(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFu
nction**:Integrationofcellularcomponentsandorganellestosupportcellularfunctionssuchasmetabolism,proteinsynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTran
sport**:Mechanismsofcellulartransport,including:**PassiveTransport**:Diffusion,osmosis,facilitateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**
:Phagocytosis,pinocytosis.**CellCommunication**:Overviewofcellularcommunicationprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Tra
nsmissionofsignalswithincells(e.g.,secondmessengers).**CellSignalingPathways**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthe
cellcycle(interphase,mitosis,cytokinesis)andtheirregulation.Importanceofcelldivisioningrowth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddiv
ision.Causesofcancer(mutations,environmentalfactors),mechanismsoftumorformation,andapproachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(plu
ripotent,multipotent),andpotentialapplicationsinregenerativemedicineandresearch.**MicroscopyandCellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
An attempt has been made to cover fully the syllabus prescribed for each module/subject and the presentation
of topics may not always be in the same sequence as given in the syllabus. Candidates are also expected to
take note of all the latest developments relating to the subjects covered in the syllabus by referring to RBI
circulars, financial papers, economic journals, latest books and publications in the subjects concerned.
Although due care has been taken in publishing this study material, yet the possibility of errors, omissions and/
or discrepancies cannot be ruled out. This publication is released with an understanding that the Institute shall
not be responsible for any errors, omissions and/or discrepancies or any action taken in that behalf.
iii
, Should there be any discrepancy, error or omission noted in the study material, the Institute shall be obliged if
the same are brought to its notice for issue of corrigendum in the e-bulletin Student Company Secretary. In the
event of any doubt, students may write to the Directorate of Academics in the Institute for clarification at
.
There is open book examination for this Elective Subject of Professional Programme. This is to inculcate and
develop skills of creative thinking, problem solving and decision making amongst students of its professional
programme and to assess their analytical ability, real understanding of facts and concepts and mastery to apply,
rather than to simply recall, replicate and reproduce concepts and principles in the examination.
SYLLABUS
MODULE III, ELECTIVE PAPER 9.1: Banking Law and Practice (100 Marks)
Level of Knowledge: Expert Knowledge
Objective: To acquire specialized knowledge of law and practice relating to Banking
Detailed Contents:
1. Overview of Banking System
2. Regulatory Framework and Compliances
A. Provisions of RBI Act 1935, Banking Regulation Act 1949, Prevention of Money Laundering Act, 2002.
B. Government and RBI‘s Powers Opening of New Banks and Branch Licensing Constitution of Board of
Directors and their Rights Banks Share Holders and their Rights CRR and SLR Concepts Cash-
Currency Management Winding up - Amalgamation and Mergers Powers to Control Advances - Selective
Credit Control – Monetary and Credit Policy Audit and Inspection Supervision and Control - Board for
Financial Supervision – its Scope and Role Disclosure of Accounts and Balance Sheets Submission
of Returns to RBI, Corporate Governance.
Chapter3providesacomprehensiveoverviewoftheorganicmoleculesessentialforlife,layingthegroundworkforunderstandingtheirbiochemicalproperties,biologicalfunctions,andcontributionstocellul
arandorganismalbiology.Itservesasacrucialfoundationforfurtherexplorationintocellularstructureandfunction,genetics,andphysiologicalmechanismscoveredinsubsequentchaptersofthetextbook.If
youhavespecificquestionsaboutanyofthesetopicsorwouldlikemoredetailedinformationonaparticularaspectofChapter3,feelfreetoask!Chapter4:InsidetheCellChapter4of"EssentialsofBiology"bySy
lviaMaderandMichaelWindelspecht,titled"InsidetheCell,"typicallyfocusesonthestructureandfunctionsofcells,whicharethebasicunitsoflife.Here‘sanoverviewofwhatyoumightfindinthischapter:**
IntroductiontoCells**:Definitionofcellsasthefundamentalunitsoflife,theirdiversityinstructureandfunction,andtheCellTheory.**CellStructure**:Explorationofthestructureoftypicaleukaryoticcell
s,including:**CellMembrane**:Structure,composition(lipidbilayer,proteins),functionsincelltransport,signaling,andrecognition.**Cytoplasm**:Composition,organellessuspendedwithin(e.g.,cy
toskeleton,ribosomes).**Nucleus**:Structure,functions(DNAstorage,transcription,regulationofcellactivities).**Organelles**:Detailedexaminationoforganellessuchasmitochondria,endoplasmi
creticulum,Golgiapparatus,lysosomes,andtheirrolesincellularprocesses.**ProkaryoticCells**:Comparisonofprokaryoticandeukaryoticcellstructures,emphasizingdifferencesinorganelles,genetic
material(nonucleusinprokaryotes),andcellularprocesses.**CellularOrganizationandFunction**:Integrationofcellularcomponentsandorganellestosupportcellularfunctionssuchasmetabolism,prote
insynthesis,energyproduction(e.g.,ATPsynthesis),andmaintenanceofhomeostasis.**CellularTransport**:Mechanismsofcellulartransport,including:**PassiveTransport**:Diffusion,osmosis,faci
litateddiffusion.**ActiveTransport**:Ionpumps,carrierproteins,endocytosis,exocytosis.**BulkTransport**:Phagocytosis,pinocytosis.**CellCommunication**:Overviewofcellularcommunicat
ionprocesses,including:**ReceptorProteins**:Recognitionofsignalingmolecules(ligands).**SignalTransduction**:Transmissionofsignalswithincells(e.g.,secondmessengers).**CellSignalingP
athways**:Examplesofsignalingpathways(e.g.,hormonesignaling,neurotransmission).**CellCycleandCellDivision**:Phasesofthecellcycle(interphase,mitosis,cytokinesis)andtheirregulation.Im
portanceofcelldivisioningrowth,repair,andreproduction.**CancerandCellRegulation**:Introductiontocancerasuncontrolledcellgrowthanddivision.Causesofcancer(mutations,environmentalfact
ors),mechanismsoftumorformation,andapproachestocancertreatment.**StemCellsandRegenerativeMedicine**:Overviewofstemcells,theirproperties(pluripotent,multipotent),andpotentialapplic
ationsinregenerativemedicineandresearch.**MicroscopyandCellVisualization**:Techniquesandtypesofmicroscopyusedtostudycells
3. Legal Aspects of Banking Operations
Case Laws on Responsibility of Paying and Collecting Banker Indemnities or Guarantees - Scope and
Application – Obligations of a Banker - Precautions and Rights - Laws relating to Bill Finance, LC and
Deferred Payments - Laws Relating to Securities - Valuation of Securities - Modes of Charging Securities -
Lien, Pledge, Mortgage, Hypothecation etc. - Registration of Firms/Companies - Creation of Charge and
Satisfaction of Charge.
iv
