Cover -- Preface -- Contents -- Chapter 1. Commercial Banking -- Introduction -- Meaning -- Definition of a Bank -- Types of Banks -- Functions of Commercial Banks -- Sources of Bank's Income -- Investments Policy of Banks -- Balance Sheet of the Bank -- Liabilities -- Assets -- Credit Creation -- Basis of Credit Creation -- Process of Credit Creation -- Leaf and Cannon Criticism -- Limitation on Credit Creation -- Unit Banking Vs Branch Banking -- A. Unit Banking -- B. Branch Banking System -- Commercial Banks and Economic Development -- Conclusion -- Chapter 2. Central Banking -- Introduction -- Meaning of Central Bank -- Definition of Central Bank -- Functions of the Central Bank -- Credit Control -- Objectives of Credit Control -- Methods of Credit Control -- Meaning -- Theory of Bank Rate -- Working of Bank Rate -- The Process of Bank Rate Influence -- Bank Rate Under the Gold Standard -- Conditions for the Success of the Bank Rate Policy -- Limitations -- Meaning -- Theory of Open Market Operations -- Objectives of Open Market Operations -- Conditions for the Success of Open Market Operations -- Popularity of Open Market Operations -- A. Variable Cash Reserve Ratio -- Meaning -- B. Theory of Variable Reserve Ratio -- Working of Variable Reserve Ratio -- Limitations -- Selective or Qualitative Methods -- Objectives -- Measures of Selective Credit Control -- Conclusion -- Chapter 3. Reserve Bank of India -- Introduction -- Capital -- Organisation -- Offices of the Bank -- Departments of the Reserve Bank -- Functions of the Reserve Bank -- Credit Control -- Weapons of Credit Control -- Methods of Selective Credit Controls Adopted By Reserve Bank -- Limitations of Selective Controls in India -- Monetary Policy of the Reserve Bank of India -- Reserve Bank of India and Monetary Controls -- Limitations of Monetary Policy.

Chakravarthy Report on the Working of the Monetary System -- The Narasimham Committee Report (1991) -- Recommendations of the Committee -- The Goiporia Committee Report (1991) -- Recommendations of Goiporia Committee -- The Narasimham Committee Report (1998) -- Role of RBI in Economic Development -- Contribution to Economic Development -- Conclusion -- Chapter 4. State Bank of India -- Introduction -- Capital -- Management -- Functions -- Role of the State Bank in Economic Development -- Conclusion -- Chapter 5. Money Market and Capital Market -- Introduction -- Money Market -- Functions of Money Market -- Composition of the Money Market -- Financial Institutions of the Money Market -- Characteristics of a Developed Money Market -- Usefulness of a Developed Money Market -- Structure of the Money Market -- Characteristics of Indian Money Market -- Defects of Indian Money Market -- Measures for Improvement of the Money Market -- Suggestions to Remove Defects in the Indian Money Market -- The Repo Market -- The Commercial Bill Market -- The Certificate of Deposit (CD) Market -- The Commercial Paper Market -- Money Market Mutual Funds -- Capital Market -- Classification of Indian Capital Market -- Importance of Capital Market -- Functions of Capital Market -- Structure of Indian Capital Market -- Components of Indian Capital Market -- Recent Trends in the Capital Market -- Comparison of Money Market and Capital Market -- Conclusion -- Chapter 6. Structure of Banking in India -- Introduction -- 1. Indigenous Banks -- Meaning -- Groups -- Types -- Functions of Indigenous Bankers -- Defects of Indigenous Bankers -- Indigenous Bankers and the Reserve Bank -- Suggestions for Reform -- 2. Moneylenders -- Features of Moneylenders -- Differences Between Moneylenders and Indigenous Bankers -- Defects of Moneylenders -- 3. Co-operative Banks -- Meaning.

Structure of Co-operative Banks -- Progress of PACS -- Shortfalls PACS -- Functions -- Progress of CCBs -- Defects of CCBs -- Functions -- Defects -- Progress -- Present Position of Co-operative Banks -- Importance or Benefits of Co-operative Banks -- Problems or Weaknesses of Co-operative Banks -- Suggestions for the Improvement of the Co-operative Credit Structure -- 4. Land Development Bank -- Sources of Funds -- The Working of the LDBs -- Progress -- Defects -- Suggestions for Improvement -- 5. Regional Rural Banks -- Objectives of Regional Rural Banks -- Capital Structure -- Features of Regional Rural Banks -- Functions of Regional Rural Banks -- Progress Achieved by Regional Rural Banks -- Problems -- Suggestions for Reorganisation and Improvement -- 6. Nabard -- Objectives -- NABARD's Financial Resources -- Management -- Functions of NABARD -- Achievements of NABARD -- 7. Commercial Banks -- Nationalisation of Banks -- Achievements of Nationalised Banks -- 8. Credit Cards -- Advantages of Credit Cards -- Limitations or Drawbacks of Credit Cards -- Conclusion -- Chapter 7. Development Banks -- Introduction -- Meaning -- Features -- Important Development Banks in India -- 1. Industrial Finance Corporation of India Ltd. -- Functions of the IFCI -- Financial Resources of IFCI -- Lending Operations of IFCI -- Appraisal of IFCI's Performance -- 2. The Industrial Credit and Investment Corporation of India Ltd. -- Financial Resources of ICICI -- Lending Operations of ICICI -- Appraisal of ICICI's Performance -- 3. State Financial Corporations -- 4. The Industrial Development Bank of India -- Financial Resources of IDBI -- Cumulative Assistance by IDBI -- Composition of Financial Assistance -- Promotional Functions of the IDBI -- Critical Appraisal -- 5. Small Industries Development Bank of India -- Financial Resources of SIDBI.

Financial Assistance by SIDBI -- 6. The Industrial Reconstruction Bank of India (IRBI) -- 7. The State Industrial Development Corporations (SIDCs) and the State Industrial Investment Corporations (SIICs) -- 8. Unit Trust of India -- Present Position -- 9. Life Insurance Corporation of India (LIC) -- Present Position -- 10. The Export-Import Bank of India (EXIM Bank) -- Functions of the EXIM Bank -- Present Position -- Conclusion -- Chapter 8. Banker and Customer -- Introduction -- Meaning and Definition of a Banker -- Meaning and Definition of a Customer -- Special Types of Customers -- Legal Provisions Regarding Guardianship of a Minor -- The Banker-Customer Relationship -- A. General relationship, and B. Special relationship. -- 1. Primary Relationship -- 2. Secondary Relationship -- Obligations of Bankers -- 1. Obligation to Honour the Customer's Cheques -- 2. Obligation to Maintain Secrecy of Customer's Account -- 3. Obligation to Receive Cheques and Other Instruments for Collection -- 4. Obligation to Give Reasonable Notice before Closing the Account -- Obligations of Customers -- Conclusion -- Chapter 9. Opening and Operating Bank Accounts -- Introduction -- Types of Accounts -- Procedure of Opening Current and Savings Accounts -- Forms Used in Operation of Bank Account -- Closing of a Bank Account -- Insurance of Bank Deposit -- Deposit Insurance and Credit Guarantee Corporation (DICGC) -- Objectives -- Credit Guarantee Function -- Nomination Facility -- Non-Resident Account -- Recent Development -- Conclusion -- Chapter 10. Pass Book -- Introduction -- Meaning of Pass Book -- Object or Purpose of Pass Book -- Statement of Account -- Examination of Entries -- Legal Position of Entries in the Pass Book -- Effect of Entries in the Pass Book -- Precautions in Writing a Pass Book -- Conclusion -- Chapter 11. Cheques -- Introduction -- Meaning.

Definition -- Essentials -- Types of Cheques -- Uses of a Cheque -- Advantages of Using Printed Forms -- Parties to a Cheque -- Material Alterations -- Alteration -- Material Alteration -- Examples of Material Alterations -- Examples of Authorised Alterations -- Examples of Non-material Alterations -- Effects of Material Alteration -- Crossing of Cheques -- Meaning of Crossing -- Types of Crossing -- Special Crossing -- Other Types of Crossing -- Significance of Crossing -- Endorsement -- Definition of Endorsement -- Essentials of a Valid Endorsement -- Kinds of Endorsement -- Legal Effects of an Endorsement -- Differences between a Bill of Exchange and Cheque -- Distinguish Between a Cheque and a Promissory Note -- Holder and Holder in Due Course -- Holder -- Holder in Due Course -- Privileges of a Holder in Due Course -- Distinction between Holder and Holder in Due Course -- Conclusion -- Chapter 12. The Paying Banker -- Introduction -- Meaning -- Precautions for Payment of Cheques -- Precautions -- Statutory Protection -- Protection Available Under the Negotiable Instruments Act -- Dishonour of Cheques -- When a Banker can Dishonour Cheques -- Bank's Remarks on Dishonoured Cheques -- Conclusion -- Chapter 13.Collecting Banker -- Introduction -- Meaning -- Collecting Banker as Holder for Value -- Collecting Banker as an Agent of the Customer -- Conversion -- Statutory Protection to Collecting Banker -- Duties and Responsibilities of a Collecting Banker -- Marking of Cheque -- Who Can Get the Cheque Marked? -- Conclusion -- Chapter 14. Loans and Advances -- Introduction -- General Rules of Sound Lending -- Forms of Lending (Advances) -- Merits of Granting Loans -- Demerits -- Merits of Cash Credit -- Demerits -- Distinction between Loan and Cash Credit -- Distinction between Cash Credit and Overdraft -- Types of Loans and Advances.

Determining Creditworthiness.