Principles And Practices Of Banking : A Comprehensive Study Module

This book has been prepared as a comprehensive study module in the principles and practices
of banking, intended primarily for students of the Bachelor of Business Administration
programme. Banking sits at the very centre of the modern financial system, and a sound
understanding of how banks originated, how they function, how they are regulated, and how
they interact with allied financial institutions is indispensable not only to students preparing
for a career in banking and finance, but to any student of business who will, in one capacity or
another, engage with banks throughout their professional life.
The book is organised into six modules, following the prescribed syllabus. The first module
traces the evolution of banking, from its earliest origins through its development in the West
and in India, and lays the conceptual foundation of what a bank is and does. The second module
examines the primary and secondary functions performed by a commercial bank, from the
acceptance of deposits and the granting of loans and advances to the wide range of agency and
general utility services banks provide. The third module turns to banking procedure, examining
in detail how deposit accounts are opened and operated, and the special considerations that
apply to different categories of account holders. The fourth module surveys the principal
methods by which funds are remitted through the banking system. The fifth module looks
beyond banks themselves to the wider universe of non-banking financial institutions, with
particular attention to mutual funds and housing finance institutions. The sixth and concluding
module examines the international dimension of banking, including the diversification of banks
into new lines of business, the growth of multinational banking, and the distinctive features of
the Eurocurrency market.