1.

1. I Introduction to Banking
2. II Introduction to Retail Banking
3. III Banking Terminology
4. IV CASA
5. V Time Deposits
6. VI Loans
7. VII Remittances
8. VIII Non-Branch Delivery Channels
9. IX Audit and Supervision
10. X Software Expectations
11. XI Wrap-Up
2. Introduction to Banking
3. Banks
1. Role of Intermediary
2. Banks and Banking Functions
3. Competitors to Banks
4. Disintermediation
5. Changing Role of Banks
6. Towards a Financial Supermarket...
4. What is Banking
1. Borrowing and safe keeping of money
2. Lending of money
3. Transmitting of money
4. Exchanging of money
5. Exchange of financial information
5. BANKING FRAMEWORK
1. Retail Banking
1. CASA, Deposits, Loans, Credit Cards, FX, Remittances, Securitization
2. Corporate Banking
1. Trade Finance, Project Finance, Bills, LCs, Guarantees, Syndicated Financing
3. Investment Banking
1. FX, Money Markets, Securities, Leasing, Factoring
6.
1. Private Banking Trusts, Portfolio Management
2. Fiduciary Services
1. Pensions, Custody Services, Will & Estate Management
3. Other services Correspondent Banking, Safe deposit Vaults, Insurance, Travel, Bill Payment, Tax
Counselling
BANKING FRAMEWORK-2
7. Retail VS Wholesale Banking
1. Retail Banking Wholesale Banking
2. Focus On Individual Customers Focus On Large Corporate Entities
3. Wide Branch Network Limited Branch Networking
4. Variety Of Services Available Focus On Smaller Customer Base
8. Money Multiplier Effect
1. Money supply creation by Banks
2. Need to regulate and control
3. Methodology of regulation
9. Customer and the Bank
1. Who is a Customer
2. Customer Confidentiality
3. Ownership of Accounts
4. Precaution against Conversion and Frauds
5. Legal Responsibility to prevent Money Laundering Breaking countrys Laws
10. Bank-Client Relationship
1. Good Faith
2. Bankers General Right of Lien
3. Rights of Set -Off
4. Estoppel
5. Confidentiality
6. Disclosure Under Laws of the Land
7. Full Disclosure of Terms and Conditions of Relationship
8. Can bank Discriminate between Customers in Treatment?
11. Interest
1. Accrual
2. Capitalization
3. Accrual Frequency
4. Capitalization Frequency
5. Interest Methods
1. Monthly Minimum, Daily Balance, Average Balance,...
6. Interest Basis
1. 30/360, Actual/Actual, Actual/360,...
7. Withholding tax, Interest tax deduction
12.
1. Bank Accounting Peculiarities
2. Window Dressing
3. Income Recognition
4. NPA Classification
5. International Accountancy Rules
6. Capital Adequacy
7. Deposit Risk Cover Protection
Banks Books of Accounts
13. General Ledger
1. General Ledger and Subsidiary Ledger
2. Central Bank Reporting
3. Multi-Currency Treatment
4. Treatment of Inter-Branch Transactions
5. Treatment of Suspense Accounts, Entries
6. External General Ledger
14. Lending of Money
1. Statutory controls on lending
2. Principles of sound lending
3. Purposes
4. Periods
5. Types of lending
6. Security for advances
15. Principles of Sound Lending
1. Borrower
1. Character
2. Capital
3. Capability
2. Bank
1. Safety of funds
2. Spread of risk
3. Liquidity of funds
4. Profitability
3. Viability of the scheme
16. Traditional Banking...
1. Competition, Disintermediation and Diminishing Spreads
2. Movement towards Fee-income
3. Technology Driving Banking, Banking Driving Technology
4. Market Place crowded, Mixed, Technology-driven
17. Types of lending
1. Fund based
1. Term Loans
2. Cash Credit / Overdraft
3. Purchase & Discount of Bills (inland & foreign)
2. Non Fund based
1. Letters of credit
2. Guarantee
3. Bills Co-acceptance
18. Term Loans
1. Fixed Amount
2. For purchase of fixed assets
3. Payable
1. in suitable installments
2. in lump sum (principal + interest)
4. Usually Secured
19. Cash Credits & Overdrafts
1. Running accounts
2. Drawings fluctuate within a pre-determined band
3. As many drawals as necessary
4. Interest charged on daily balances
5. Cash credit : Usually secured
6. Overdraft : Could be secured or unsecured
20. Bills : Purchase & Discount BILLS INLAND FOREIGN DEMAND USANCE DOCUMENTARY CLEAN
21. Types of Bills
1. Demand Bills
1. Payable on demand or At sight or
2. On presentment or
3. No time for payment specified
2. Usance Bills
1. Payable on the expiry of a certain period after date or sight
22. Types of Bills
1. Clean Bill
1. Unaccompanied by any other allied documents
2. eg : Cheques, Warrants
3. Trade bills without the relative document evidencing dispatch of goods
4. Unsecured. Can be Sight or usance
2. Documentary Bill
1. Accompanied by document of title to goods
2. Secured/Unsecured: Secured/Unsecured
23. Advantages of Bill Business
1. Definite date of repayment
2. Re-discounting facilities
3. Stability of value
4. High profitability
5. Greater legal protection
24. Bill Transactions
1. Collection
2. Purchase & Discount
3. Negotiation
25. Letters of Credit
1. Issuing bank undertakes to make payment to the beneficiary of the LC against presentation of
specified documents
2. Beneficiary is assured of payment
3. No immediate outflow of funds
4. Parties to a credit
1. Applicant (buyer)
2. Beneficiary (seller)
3. Issuing bank
26. Guarantees
1. To perform the promise or discharge the liability of a third party in case of his default
2. Three parties
1. Guarantor / Surety (banker)
2. Principal Debtor (on whose behalf)
3. Principal Creditor (in whose favour)
3. Financial Guarantee
4. Performance Guarantee
5. Deferred payment guarantee
6. No immediate outflow of funds
27. Related Services
1. Merchant banking
2. Counselling corporate clients on
1. Capital structure
2. Form of capital to be raised
3. Terms & conditions of the issue
4. Under writing of the issue
5. Timing of the issue
6. Preparation of the prospectus
7. Raising of long term loans
28. Related Services (contd...)
1. Trustee, executor, & admin services
2. To handle
1. Investments / estates / properties
2. Distribution after death
3. To act as guardian of a minors property
4. To administer public trusts
29.
1. Factoring
2. Factor maintains the trade debts of the client company
1. Maintains sales ledger
2. Issues invoices
3. Collects payments
3. Credit protection
1. Factor assumes responsibility for trade debts, due to the client company
4. Factor advances a proportion of the trade debts immediately and the balance on maturity of the
debts
1. Improves client's liquidity
Related Services
30. Clearing House Operations
1. Outward clearing
2. Inward clearing
3. Returns- outward clearing
4. Returns- Inward clearing
5. Re-presentations
6. Time factor
7. Reconciliation
31. Automated Clearing House
1. Electronic clearing
2. Paperless transfers of funds
3. Settlement
32. Foreign Exchange
1. FX Market
2. Exchange rates
3. Risks
4. Revaluation
5. Mark to the market
6. Risk management
33. Legal aspects in Banking
1. Customer
2. Types of legal relationships
3. Duties and obligations
4. Rights and remedies
5. Confidentiality
6. Law relating to Limitations
7. Disclosure regulations in Accounts
34. Law and Banking
1. Application of Law
2. Jurisdiction
3. Civil laws
4. Criminal laws
5. Law of limitation
35. Supervision of Banks
1. Central Bank of the country
2. Degrees of supervision
3. Modes of Supervision
4. Audit and self-regulation
5. Importance of proper supervision
6. Cross-country regulation of Banks