Banking Law

From LawNotes.in
Jump to: navigation, search

Banking Law refers to the legal aspects of the duties of the bank and legal aspects related to various banking instruments.

Contents

Topics under Banking Law

Banker and the Customer

Business aspects of Banking

  • Opening of new account
  • Kinds of accounts: current account, savings account, deposit account, joint account
  • Accounts of special customers :Minor, partnership, company, trust, married women etc.
  • Pass book
  • Over-over
  • Draft-appropriation of payments
  • Right of set-off
  • Combining of several accounts
  • Receipt of valuable for safe custody
  • Garnishee orders

Negotiable Instruments

Bankers rights over securities for bank advances

  • Banker's Lien
  • Pledge
  • Guarantee
  • Documents of title goods
  • Bill of lading
  • Dock warrant
  • Warehouse keeper certificate
  • Delivery order
  • Railway receipt
  • Bankers commercial of letters credits

Other Banking Topics

  • Loans and Advances
  • Letter of Credit
    • Clayton's Case says that the customer has the right to demand the banker to what account his money should be appropriated when he has several debts with the banker.
    • Section 126 of Indian Contract Act, 1872 defines the terms 'Contract of Guarantee', 'Surety', 'Principal Debtor' and 'Creditor'.
  • Foreign Exchange Management
  • Securitisation and Reconstruction of Financial Assets
  • Banking Ombudsman
  • Nationalisations of Banks
    • Effect of nationalization
    • Achievements and drawbacks
    • Globalization and its impact
  • Innovations in Banking
    • e-Banking
    • Off-shore banking
    • RBI guidelines

Acts & Rules related to Banking in the US

  • National Bank Act of 1864 (Chapter 106, 13 STAT. 99).
  • Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221).
  • The McFadden Act of 1927 (P.L. 69-639, 44 STAT. 1224).
  • Banking Act of 1933 (P.L. 73-66, 48 STAT. 162).
  • Banking Act of 1935 (P.L. 74-305, 49 STAT. 684).
  • Soldiers and Sailors Civil Relief Act of 1940 (50 App. U.S.C. § 501).
  • Federal Deposit Insurance Act of 1950 (P.L. 81-797, 64 STAT. 873).
  • Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133). (links to FDIC)
  • Bank Secrecy Act (BSA) of 1970 (53 U.S.C. 5311, et seq).
  • Fair Credit Reporting Act of 1971 (P.L. 91-508 as amended by P.L. 107-56 (October 26, 2001) 15 U.S.C. § 1681).
  • Real Estate Settlement Procedures Act of 1974 (RESPA) (P.L. 93-533)
  • Community Reinvestment Act of 1977 (Title VII of P.L. 95-128, 91 Stat. 1147 (October 12, 1977); Codified at 12 U.S.C. 2901)
  • International Banking Act of 1978 (P.L. 95-369, 92 STAT. 607).
  • Financial Institutions Regulatory and Interest Rate Control Act of 1978 (P.L. 95-630, 92 STAT. 3641).
  • Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.)
  • Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221, 94 STAT. 132).
  • Depository Institutions Act of 1982 (P.L. 97-320, 96 STAT. 1469).
  • Competitive Equality Banking Act of 1987 (P.L. 100-86, 101 STAT. 552).
  • Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (P.L. 101-73, 103 STAT. 183).
  • Crime Control Act of 1990 (P.L. 101-647, 104 STAT. 4789).
  • Federal Deposit Insurance Corporation Improvement Act of 1991 (P.L. 102-242, 105 STAT. 2236).
  • Housing and Community Development Act of 1992 (P.L. 102-550, 106 STAT. 3672).
  • RTC Completion Act (P.L. 103-204, 107 STAT. 2369).
  • Riegle Community Development and Regulatory Improvement Act of 1994 (P.L. 103-325, 108 STAT. 2160).
  • Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. (P.L. 103-328, 108 STAT. 2338).
  • Home Ownership and Equity Protection Act (HOEPA) of 1994
  • Economic Growth and Regulatory Paperwork Reduction Act of 1996 (P.L. 104-208, 110 STAT. 3009).
  • Children's Online Privacy Protection Act of 1998
  • Gramm-Leach Bliley Act of 1999 (P.L. 106-102, 113 STAT 1338)
  • Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, ("USA PATRIOT Act") (Pub. L. No. 107-56, 115 Stat. 272)
  • Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204)
  • The Check Clearing for the 21st Century Act ("Check 21 Act") - (Pub. L. No. 108-100)
  • Fair and Accurate Credit Transactions Act of 2003 (FACT) - (Pub. L. 108-159, 117 Stat. 1952)
  • Servicemember's Civil Relief Act (SCRA) - (Pub. L. No. 108-100)
  • Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 - (Pub. L. 109-8)

Singapore Banking Acts & Rules

  • Singapore Banking Act (Chapter 19, Revised Edition 2008)
  • Monetary Authority of Singapore Act (Chapter 186, Revised Edition 1999)
  • Singapore Bills of Exchange Act (Chapter 23, Revised Edition 2004)

Philippine Banking Acts & Rules

Pakistan Banking Acts & Rules

  • Agricultural Development Bank Ordinance, 1961
  • Asian Development Bank Ordinance, 1971
  • Bahria University Ordinance, 2000
  • Bankers’ Books Evidence Act, 1891
  • Banking and Financial Services (Amendment of Laws) Ordinance, 1984.
  • Banking Companies (Recovery of Loans) Ordinance, 1979
  • Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997
  • Banking Companies Ordinance, 1962
  • Banking Tribunals (Validation of Orders) Act, 1994
  • Banking Tribunals Ordinance, 1984
  • Banks (Nationalization) Act, 1974
  • Banks (transfer of Assets and Liabilities) Act, 1974
  • Establishment of the Federal Bank for Cooperatives and Regulation of Co-operative Banking Act, 1977
  • Government Savings Bank Act 1873
  • Industrial Development Bank of Pakistan Ordinance, 1961
  • International Monetary Fund and Bank Act, 1950
  • Islamic Development Bank Ordinance, 1978
  • National Bank of Pakistan Ordinance, 1949
  • Negotiable Instruments Act, 1881
  • Offences in Respects of Banks (Special Courts) Ordinance, 1984
  • Pakistan Banking & Finance Services Commission Act
  • Pakistan Banking (Prevention of Default and Evasion of Liabilities) Ordinance, 1947
  • Pakistan Banking Finances Services Commission Act
  • State Bank of Pakistan Act, 1956

Indian Acts & Rules related to Banking

  • Negotiable Instruments Act, 1881
  • Banking Regulation Act, 1949
  • Reserve Bank of India Act, 1934
  • Banking Companies (Acquisition and Transfer of Understandings) Act, 1970
  • Foreign Contribution (Regulation) Rules, 2011
  • Finance Act, 2011
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Rules, 2011
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
  • Pension Fund Regulatory and Development Authority Bill, 2011
  • Prevention of Money-Laundering (Appointment and Conditions of Service of Chairperson and Members of Adjudicating Authority) Amendment Rules, 2011
  • Uttar Pradesh Fiscal Responsibility and Budget Management (Amendment) Act, 2011
  • Finance Bill, 2011
  • Banking Laws (Amendment) Bill, 2010
  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Amendment) Bill, 2010
  • Micro Finance Institutions (Regulation of Money Lending) Bill, 2010
  • Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Third Amendment Rules, 2010
  • Tamil Nadu Fiscal Responsibility (Second Amendment) Act, 2010
  • Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997
  • State Bank of India Act, 1955
  • State Bank of India (Subsidary Banks) Act, 1959
  • State Bank of India (Subsidiary Banks) Amendment Act, 2011
  • State Bank of India (Subsidiary Banks Laws) Amendment Act, 2011
  • Factoring Regulation Act, 2011
  • State Bank of India (Subsidiary Banks) Amendment Bill, 2010
  • Warehousing (Development and Regulatory) Authority - Financial and Managerial Powers Rules, 2010
  • Foreign Contribution (Regulation) Act, 2010
  • Foreign Trade (Development and Regulation) Amendment Act, 2010
  • Senior Citizens Savings Scheme (Amendment) Rules, 2010
  • Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2010
  • Foreign Exchange Management Act, 1999
  • Debts Recovery Tribunal (Procedure for Investigation of Misbehaviour or Incapacity of Presiding Officer) Rules, 2010
  • Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Second Amendment Rules, 2010
  • Foreign Exchange Management (Guarantees) (Amendment) Regulations, 2010
  • Finance Act, 2010
  • Coinage of the One Hundred Fifty Rupees and Five Rupees coined to Commemorate the occasion of "150th Birth Anniversary of Rabindranath Tagore" Rules, 2010
  • Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2010
  • Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
  • Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993
  • Consumer Protection Act, 2002
  • Banking and Financial Institutions Act, 193
  • India Chit Funds Act, 1982
  • Delhi Chit Funds Rules, 2007
  • Kerala Chitties Act, 1975
  • Tamil Nadu Chit Funds Act, 1961
  • Chit Funds (Karnataka) Rules, 1983
  • Andhra Pradesh Chit Funds Act, 1971
  • Maharashtra Chit Fund Act, 1975

Indian Banking News

Other Banking Acts & Regulations

Related Cases / Recent Cases

  • Great Western Railway Vs London and County Banking Co: Bank en-cashes cheques of a person for a period of 20 years even though the person has no account with it. Held, the person is not a customer of the bank
  • Pradeep Kumar Jain vs Citi Bank AIR 1999 SC 3119: Case related to banking services. Bank fails to get insurance policy renewed. Car owner meets with accident in which few passengers dies. Supreme Court says the responsibility to get the insurance policy lies with the policy holder and not the bank entirely.
  • Vimal Chandra Grover vs Bank of India AIR 2000 SC 2181: Banker gives overdraft facility as part of banking as a service and the term 'service' is as per clause (0) of Section 2 of Consumer Protection Act, 1986.
  • Central Bank of India Ltd., Bombay vs V Gopinathan Nair and Others, AIR 1970 Kerala 74: A customer is one who has an account with a banker or for whom a banker habitually undertakes to act as such.
  • Commissioner of Taxation Vs English, Scottish and Australian Bank Ltd 1920 AC 683 (690): The word 'customer' signifies a relationship in which duration is not of the essence.
  • Savoy & Co. vs Lloyds Bank Ltd (1932) TLR 344: Even a single transaction can constitute a 'customer'.
  • Ladbroke and Co Vs Todd (30 TLR) 1914 (433): Relationship between banker and customer begins as soon as a cheque is paid in and accepted for collection and not merely it is paid.
  • Clare & Co vs Dreshner Bank (1915) 2 KB 57: The customer can issue cheques only on the branch of the bank where the account is kept.
  • New Bank of India Ltd vs P Lal, AIR 1962 SC 1003: Supreme Court said that where the amount is deposited by the customer for a purpose, the banker acts as a trustee with regard to the balance of the amount after fulfillment of the purpose.
  • Foley vs Hill (1848) 2 HLC 28: Banker is a person who receives the money of his customers to be drawn out again as the owner has occasion for it..
  • Delhi Cloth & General Mills Ltd vs Harnam Singh AIR 1955 SC 505: Supreme Court cited the definition of banker as given by Halsbury's Laws of England
  • United Dominions Trust Ltd vs Kirkwood (1966) 1 All ER 968; (1966) 2 QB 431
    • Term 'banker' has the same effect as 'bank'
    • Three essential elements are given:
      • Accept money from the customers, deposit the money in the accounts by collection of their cheques
      • Honors the cheques and orders drawn by their customers
      • Maintain the current account or other records of similar nature in which names of customers and deposits are entered.
  • State Savings Bank of Victoria Commrs vs PW & Co: A company is said to be carrying on the business of banking even thought it does not issue cheques or keep current account but only issued deposit receipts and permitted withdrawal on production of passbooks.
  • District Savings Bank Ltd., Re, (1901) 1 IR 195; Joachimson Vs Swiss Bank Corporation (1921) 3 KB 110: Banks should allow the customer to deposit cash and cheques and withdraw his money by cheque, draft or order.

Notifications & Circulars

  • December 2011: Exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 - State Bank of India Commercial and International Bank Limited - CIRCULAR NO. DBOD.RET.BC. NO.66/12.06.001/2011-12, DATED 21-12-2011
  • December 2011: Exclusion of State Bank of India Commercial and International Bank Ltd. from Second Schedule of RBI Act, 1934 - NOTIFICATION DBOD.NO.RET.BC. 35/12.06.059/2011-12, DATED 26-09-2011
  • December 2011: Section 2 of the Foreign Contribution (Regulation) Act, 2010 - Foreign Source - Specified International Organization which is not to be treated as foreign source u/s 2(1)(j)(ii) - NOTIFICATION NO. S.O. 1433(E) [F. NO. 11/21022/9(1)/2008-FERA-III], DATED 22-06-2011

United States Acts

Kenyan Acts

  • Bills of Exchange Act
  • Central Bank of Kenya Act (Cap 491)
  • Banking Act (Cap 488)
  • Cheques Act, Chapter 35
  • Microfinance Act, 2006
  • National Payment System Act, 2011

Malaysian Acts

Related Topics


Views
Personal tools