JAIIB Principlesof Banking MOD B

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JAIIB

APRIL 02/2007

WELCOME TO VIRTUAL CLASS

ROOM SESSSION



BANKER-CUSTOMER

RELATIONSHIP

DEBTOR-CREDITOR

CREDITOR-DEBTOR

AGENT-PRINCIPAL LESSOR-LESSEE

BAILEE-BAILOR



BANKER’S DUTIES

&

RESPONSIBILITIES

PAYING BANKER PAYMENT OF

CHEQUES

PAYMENT INDUE COURSE

APPARENTTENOR

PAYMENT INGOOD FAITH

WITHOUTNEGLIGENCE

NEGOTIABLE INSTRUMENTS



CHEQUES

OPEN

CROSSED

ORDER

BEARER



NEGOTIABLE INSTRUMENTS

BANKER’S DUTIES

&

RESPONSIBILITIES

C0LLECTINGBANKER

COLLECTION OF

CHEQUES

HOLDER INDUE

COURSE

CONSIDERATION TITLE IBEFOREMATURITY



DEPOSIT ACCOUNTS

CERTIFICATE

FLEXI

RECURRING

FIXED

SAVINGS

CURRENT

DEPOSITS



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



CHARGES

HYPOTHECATION

PLEDGE

MORTGAGEASSIGNMENT

LIEN

SET OFF



FUND BASED FINANCE

BILLSFINANCE

TERMFINANCE

RETAILFINANCE

OVERDRAFT

CASH CREDIT

LOANS&

ADVANCES



Non-Fund Based Finance

BANKGUARANTEE

CO-ACCEPTANCEOF BILLS

LETTERS OFCREDIT



Working Capital Cycle

Cash

Raw material

Semi finished goodsFinished goods

sales

Bills receivables



Non-Resident Indian Accounts

Who is a Non Resident Indian?

1)An Indian citizen who resides outside India onaccount of

a) Employment/business/vocationand

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



6 Cs CHARACTER

CAPTIAL

CAPACITY COLLATERAL

CONDITION

COMPLIANCE



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



FAQs• Distinguish -Cash Credit and Overdraft• Both CC and OD forms part of working

capital finance

CC is granted against moveable goods(inventory/semi finished goods/goods etc)OD is granted against paper security(Fixed deposit receipts/shares/bookdebts)



FAQs

• KYC: Know Your Customer

• Know your customer norms are applicable

•

to all customer accounts. It deals with not• only to identify the customer but also

• to understand the activities of the customer,

• to ensure that the operations in the customer• account/s is/are for genuine purpose





THANKS & ALL THE

BEST• T.M.C.VARADARAJAN

• TEL : 022-25638965 (R)

• 022-66364206 (O)

• e.mail:

[email protected]

•

[email protected]

mailto:[email protected]




Documents

JAIIB Principlesof Banking MOD B