(Department
of Business Administration)
BANKING LAW AND PRACTICE (189)
CHECKLIST
SEMESTER:
SPRING 2012
This
packet comprises the following material:
1.
Text Book (one)
2.
Course Outline
3.
Assignment No. 1,
2
4.
Assignment Forms
( 2 sets )
In
this packet, if you find anything missing out of the above mentioned material,
please contact at the address given below:
The Deputy Registrar
Services Block No. 28
Allama Iqbal Open University
H-8, Islamabad.
Nadia Rashid
(Course
Coordinator)
(Department of Business Administration)
1.
PLAGIARISM OR HIRING OF
GHOST WRITER(S) FOR SOLVING THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2.
SUBMITTING ASSIGNMENTS
BORROWED OR STOLEN FROM OTHER(S) AS ONE ’S
OWN WILL BE PENALIZED AS DEFINED IN “AIOU PLAGIARISM POLICY”.
ASSIGNMENT No. 1
Course: Banking Law and Practice (189) Semester: Spring 2012
Level: BBA Marks:
100
Q. 1 Discuss in
detail the functions and credit control measures of State bank of Pakistan and
Reserve Bank of India. Also give comparison between both banks policies. (20)
Q. 2 Discuss the
rights and obligations of banker and customer to each other in detail. (20)
Q. 3 What do you mean by accounts of special
customers? How these accounts are opened by a bank? Discuss the procedure of
opening such accounts in detail. (20)
Q. 4 Discuss in detail the significance and use of
deposits in banking system of
Pakistan. (20)
Pakistan. (20)
Q. 5 (a) “Mr. Hasan promises to pay Mr. Sajid Rs.
100,000 and all other sums which shall be due to him.” Is it a promissory note?
State reasons. (10)
(b) Differentiate
between the features of bill of exchange and promissory note.
(10)
ASSIGNMENT No.
2
Total Marks: 100
Q. 1 Discuss the
different types of loans being offered by banks in Pakistan. Also describe the
basic principles that must be observed by a bank while extending loan to a
borrower. (20)
Q. 2 How the State Bank of Pakistan control the
bank credit in Pakistan? Discuss the various tools used by it for controlling
the credit. (20)
Q. 3 Critically
evaluate the contemporary practices of Islamic banks in Pakistan. Also explain
that how much it comply with Islamic Shariah. (20)
Q. 4 What do you mean by Letter of Credit? Discuss
in detail the mechanism involved in making payments for overseas business
through a letter of credit. (20)
Q. 5 Write note
on the following: (20)
(a) Foreign Exchange Regulation Act, 1947
(b) Banking Companies Ordinance, 1962
BANKING LAW AND
PRACTICE
COURSE
OUTLINE (BBA -189)
Evolution
of Banking, Early Growth, Modern Banking, Development of Modern Banking, Types
of banks, Development of Banking in America, Banking during Muslim Rule in
India, The Emergence of Public Banks in India, Joint Stock Bank, Exchange
Banks, The Imperial Bank of India, The Reserve Bank of India, Post-World War
Indian Banking, Banking in Pakistan
Deposits,
Nature of deposits (Accounts) such as Current, Term Deposits, Term Deposits in
Joint Names, Saving Deposits, Call, Short Notice Deposits and Pak Rupee
Non-Resident Accounts, Foreign Currency Accounts, Importance and Mobilization
of Deposits in Banking System
Banker, Functions Of The Banker,
Customer, Qualifications of Customer, Rights and Obligations of Customer
Towards The Banker, General Relationship, Other Relationships, Special Features
of Relationship, Right to Lien, Right of Set off, Banker’s Duty of Secrecy,
Termination of Relationship
Accounts
of General Customers: Introduction and Preliminary Investigation, Specimen
Signature, Married Women, Pardanashin Women, Minor Accounts, Individual
Accounts, Joint Accounts
Accounts
of Special Customers: Partnership Firms, Joint Stock Companies, Accounts of
Clubs, Societies, and Associations, Agents Accounts, Trust Account, Executor’s
and Administrators Account, Account of Local Bodies
Cheques: Definition, Types of Cheques, The Requisites of a Cheque,
Parties to a Cheque; Promissory Note; Bill of Exchange: Parties to a Bill of
Exchange, Types of Bills; Banker’s Draft, Pay Order, Telegraph Transfers, Mail
Transfers, Travellers Cheques etc
Principles
and Forms of Lending: Principles of Lending; Forms of Lending- Cash Finance,
Overdraft; Loans- Bridge and Participation Loans, Purchase and Discounting of
Bills
Securities
for Advances: Classification of Securities, Banker’s Lien, Charge, Contract of
Pledge, Hypothecation, Guarantees, Indemnity
Bank
Rate, Open Market Operation, Variable Reserve Requirements, Selective Credit
Control, National Credit Consultative Council, Small Loans Scheme, Agricultural
Finance, Industrial Finance, Export Finance, Export Finance Scheme
- Main features of the Islamic Economic
system
- System of Interest Free Banking and
Implementation in Pakistan
- Modes of Non-Interest Financing
(i) Financing by Lending:
(a) Qard-e-Hasna
(b)
Loans with service charges
(ii) Trade Related Modes:
(a) Purchase of Trade bills
(b) Purchase and sale of goods on Mark up
basis
(c) Financing for the development of a
property on the basis of "development charge:.
(d) Purchase of goods/immovable property
under buy-back agreements
(e) Hire purchase
(f) Leasing
(iii) Investment Type modes:
(a) Musharika
(b) Participating Term and Modaraba
certificates
(c) Equity participation
(d) Rent Sharing
Why
Foreign Exchange? Foreign Exchange Control in Pakistan, Mechanism of Foreign
Exchange,
Letters
of Credit (L/C): Definition, Classes of Letters of Credit- Documentary Letters
of Credit, Revocable and Irrevocable Letters of Credit, Revolving Letters of
Credit, Red Clause Credit, Green Clause Credit, Transferable and Assignable
Credit, Back to Back Credit, Deferred Payment Credit, Acceptance Terms Credit,
Advantages of Letter of Credit, Rights and Liabilities of Opening Banker and
Negotiating Banker, Negotiation of documents, Remittance Against Imports,
Forward Exchange Contract, Forward Cover Against Exports
- Negotiable Instruments Act, 1881
- State Bank of Pakistan Act, 1956
- Banking Companies Ordinance, 1962
- Banks (Nationalization) Act, 1974
-
Foreign Exchange Regulation Act,
1947
BOOK RECOMMENDED:
Practice
and Law of Banking in Pakistan, By Dr. Asrar H. Siddiqi
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