Category: Banking Law

Anti-Money Laundering Laws

The goal of a large number of criminal acts is to generate profits for the individual or the group that carries out the act. Money laundering is the processing of these criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables the criminal to enjoy these profits without jeopardising their source. In this paper, the author has discussed the various stages, trends, developments and the law relating to this subject.

The Role of Bank as Trustee

By Sumit Kumar Suman, CNLU Introduction The relationship of banker and customer is not something which is static but is a relationship which on many occasions changes its color from one relationship to another. In a normal course of business, the basis of banker and customer relationship is contractual, and […]

Dishonour of Cheques: Director’s Liability in case of Dishonour

Cheques are a type of bill of exchange and were developed as a way of making payments without the need to carry large amounts of money. A dishonoured cheque cannot be redeemed for its value and is worthless; they are also known as an RDI (returned deposit item), or NSF (non-sufficient funds) cheque. Cheques are usually dishonoured because the drawer’s account has been frozen or limited, or because there are insufficient funds in the drawer’s account when the cheque was redeemed. A cheque drawn on an account with insufficient funds is said to have bounced and may be called a rubber cheque. Banks typically charge customers for issuing a dishonoured cheque, and in some jurisdictions such an act is a criminal action. A drawer may also issue a stop on a cheque, instructing the financial institution not to honour a particular cheque

TRANSFORMATION OF FINANCIAL INSTITUTIONS INTO UNIVERSAL BANKS

 By Saksham Dwivedi, CNLU Patna Editor’s Note: Ever since the financial sector reforms were introduced in early 90’s the banking sector saw the emergence of new generation of private sector banks. These banks gained at most popularity as they have technology edge and better business models when compared to public […]

Securitization of a Cross Border Transaction

By Hardeep Singh Chawla and Aashna Chawla, Amity Law School Editor’s note: Securitization has undoubtedly emerged globally as an important technique for bundling assets and segregating risks into marketable securities. However, when securitization acquires a tendency of becoming transnational, there are several issues which emerge. Let us consider a situation where an […]

Regulatory Framework of Bank Audit and Inspection- A Critical Study

By Sanjana Sahu and Sangitesh Shivam, School of Law- KIIT University Editor’s Note: Banks occupy the pride of place in any financial system by virtue of the significant role they play in spurring economic growth by undertaking maturity transformation and supporting the critical payment systems. The balance sheet and the profit and […]

Assignment under Insurance Policies

By J Mandakini, NUALS Editor’s Note: This paper attempts to explore the concept of assignment under Indian law especially Contract Act, Insurance Act and Transfer of Property Act. It seeks to appreciate why the assignment is made use of for securities of a facility sanctioned by ICICI Bank. Also, it […]