Module                        : BNS 301: Banking Concept and Practice

           Programme                 : B.Com

Credit Value              : 12

Prerequisite               : None

General Objectives:

The module aims to acquaint students with fundamental knowledge of banking law, concepts and practices.

Learning Outcomes:

Upon the successful completion of this module, student should be able to:

·         explain the various functions associated with banking

·         practice and procedures relating to deposit and credit, monitoring and control

·         correlate marketing of banking services and banking technology

CONTENT

Unit- I: Money and Banking                                                                                         (10 Hours)

An Overview: Nature, Functions and Significance of Money; Demand and Supply of Money-Concepts and Approaches; Money and Prices- Quantity Theory & Money; Inflation and its control.

Unit- II: Evolution of Banking                                                                                     (10 Hours)

Systems of Banking-Mixed, Branch, Unit, Group, Chain; Brief Structure of banks; RMA -Organization, Functions, Methods of credit control; Commercial banking; Balance sheet of a Bank; Credit creation.

Unit- III: Structure and Characteristics of Financial & Banking system                (10 Hours)

Structure and Characteristics of Financial & Banking system in Bhutan; Indian Money Market; Bhutanese  Capital Market; Bhutanese Monetary Policy & System.

Unit- IV: Emerging trends in banking                                                                        (10 Hours)

Sources and Uses of Funds in Banks;  Value Chain Analysis in Banking Industry; Emerging trends in Banking: Universal Banking, Venture Capital, Project Financing, Merchant Banking, E-Banking, Credit Cards, Banking Ombudsman Scheme. Basic concepts of micro-finance

Unit -V: Commercial Banks and Customer Relationship                                         (10 Hours)

Definition of customer to commercial banks; Features of contractual customer relationship; customer orientation, rights of customer and a banker, protection for collecting and paying bankers under the Negotiable instruments Act, banking ombudsman, and consumer forums.

Unit- VI: Recent trends in Bhutanese banking                                                             (5 Hours)

Teaching strategies

·         Lectures

·         Case studies

·         Tutorials

·         Presentations and Projects.

Assessment

·         Project work/ Assignments           20 %

·         Case studies                                  20 %

·         Mid –Semester Exam                    20 %

·         End – Semester Exam                   40 %

                                                 Total 100 %

Essential Texts

1.      Sundaram & Varshney, “Banking, Theory Law and Practice” (2008), Sultan     Chand & Sons, New Delhi, INDIA

2.      Chaturvedi D.D. & Mittal, A, Business Economics-II (2005), Brijwasi Book       Distributors, New Delhi, INDIA

3.       Varshney & Malhotra, Principles of Banking, Sultan Chand & Sons, New Delhi,                INDIA

References

1.            RMA’s Prudential Regulation for banking, insurance, capital market, FSA etc.

2.            Vaish M.C, “Money, Banking and International Trade”, (2007) New Age International Pvt.Ltd, New Delhi, INDIA

3.            Gordon.E, Natarajan.K, “Banking, Theory, Law & Practice”, (2007), Himalaya Publishing House, New Delhi, INDIA