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Theory paper

Law of Banking and Negotiable Instruments

Examined on Negotiable Instruments Act 1881, Banking Regulation Act 1949, Reserve Bank of India Act 1934, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, Recovery of Debts and Bankruptcy Act 1993, Insolvency and Bankruptcy Code 2016, Securities and Exchange Board of India Act 1992, Foreign Exchange Management Act 1999, Bankers’ Books Evidence Act 1891. IMPORTANT on currency. s. 138 as it now stands carries two years’ imprisonment, and the section must be read with s. 142(b)’s condonation proviso and with ss. 143 to 147, 143A and 148, all inserted after 1988. The presumption under s. 139 and its rebuttal are governed by Rangappa v. Sri Mohan (2010); interim compensation by G. J. Raja v. Tejraj Surana (2019); and the deposit on appeal by Surinder Singh Deswal v. Virender Gandhi (2019). Take the current text of the section from those judgments and from the amended Act, not from an older print.

This page is the map of the paper: every syllabus unit, the leading cases with full summaries, and the exam questions the paper actually sets.

Units

  1. Unit 1 · Banking Structure and the Insolvency and Bankruptcy Code — Module I — the business of banking and the structure of the Indian banking system; public sector, private and foreign banks; banking reform; and the Insolvency and Bankruptcy Code 2016 including information utilities
  2. Unit 2 · The Laws Governing Financial Institutions — Module II — the Banking Regulation Act 1949 and the Reserve Bank of India Act 1934: licensing, directions and inspection, the rule-making power, the cash reserve and statutory liquidity requirements, and the banking ombudsman
  3. Unit 3 · SEBI, FEMA, SARFAESI and the Bankers’ Books Evidence Act — Module III — the Securities and Exchange Board of India Act 1992; the Foreign Exchange Management Act 1999; enforcement of security interests under SARFAESI 2002; and proof of entries under the Bankers’ Books Evidence Act 1891
  4. Unit 4 · Negotiable Instruments and the Debt Recovery Tribunals — Module IV — the Negotiable Instruments Act 1881: instruments and parties, holder and holder in due course, negotiation and endorsement, crossing, and dishonour of cheques under s. 138 with ss. 143A and 148; and recovery of debts through the Debt Recovery Tribunals

Leading cases in this paper

Exam questions

Where it sits

Statutes