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2 Principles of Banking

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The key takeaways are the introduction to banking principles, types of banks and their functions, central banking and the role of SBP, types of bank accounts and operations, credit instruments, and teacher qualifications.

The different types of bank accounts discussed are current accounts, profit and loss sharing saving accounts, profit and loss sharing term deposit accounts, and foreign currency accounts.

The main credit instruments discussed are bills of exchange, cheques, bank drafts, demand promissory notes, traveller's cheques, and letters of credit.

Principles Of Banking

D.Com Part – I

Total Marks : 50 Total Hrs : ---------- 2½ hrs


Period : 03 per week Objective : 20 Mrks (40%) 30 Mins
Total Hours : 96 Subjective : 30 Mrks (60%) 02 hrs

GENERAL OBJECTIVES

- Knowledge of basic principles of banking and working of banking


system in Pakistan.
- Prepare the necessary documents regarding banking transactions
and record the same in appropriate books.

SPECIFIC OBJECTIVES.

- Understand definition of bank, kinds of Banks, function of commercial


bank & importance.
Understand definition & functions of Central Bank & State Bank of
Pakistan.
- Understand the procedure of opening and operating of different types
of accounts in commercial bank.
- Understand credit instruments, their kinds and characteristics.

Detail Of Course Contents


(Principles Of Banking)

Contact
Sr. No. Topic & Detail of Topic Marks
Hours
1 Introduction of Banking 10
1.1 Introduction. 2
1.2 Kinds of Banks. 6
1.3 Functions of Commercial Banks. 6
1.4 Importance of banking in development of 6
commerce and industry.
2 CENTRAL BANK 10
2.1 Definition of Central Bank. 1
2.2 Functions of Central Bank 6
2.3 State Bank of Pakistan, its history and 6
functions.
2.4 Role of State Bank in the economic 6
development of Pakistan.
3 KINDS OF BANK ACCOUNTS 10
3.1 Current accounts. 2
3.2 Profit and loss sharing saving account. 2
3.3 Profit and loss sharing term deposit 2
accounts
3.4 Foreign currency accounts 2
3.5 Procedure of opening and closing of these 4
accounts.
3.6 Introduction of interest free banking in 3
Pakistan.
E-Banking 05
Online Banking
Debit Card
Credit Card
ATM
4 CREDIT INSTRUMENTS 10 20
4.1 Bills of exchange
4.2 Definition
4.2.1 Credit instruments
4.2.2 Types of credit instruments
4.2.3 Parties of bill exchange
4.3 Characteristics
4.4 Parties involved
4.5 Bill payable
4.6 Bill receivable
4.7 Grace days
4.8 Acceptance
4.9 Due date
4.10 Endorsement
4.11 Discounting
4.12 Retirement
4.13 Renewal
4.14 Accommodation bill
5 Cheque 06
5.1 Definition,
5.2 Kinds,
5.3 Characteristics
5.4 Reasons of dishonour of a Cheque
6 Bank draft. 03
6.1 Definition and procedure
6.2 Difference between bank draft and cheque
7 Demand Promissory note. 04
7.1 Definition
7.2 Parties
7.3 Characteristics
7.4 Distinction between bill of exchange and
demand promissory note.
8 Traveller’s Cheque. 03
8.1 Definition and kinds
8.2 Advantages
9 Letter of Credit. 07
9.1 Definition and kinds
9.2 Advantages
9.3 Opening of LC
10 Bank advances. 04
10.1 Overdraft
10.2 Cash credit
10.3 Consumer financing
Recommended Books.

1. Nizam-e-Bankari By Khadim Hussain.


2. Miayari Bankari By Aitzaz Ahmed

Reference Books

1. Usool-e-Bankari By Ch. Muhammad Hanif


2. Principles of Banking by Muhammad Saeed Khan.
3. Banking by Hassan Mobeen.
4. A Text Book of Banking by M.A Qadir by M Kshod
5. Banking, Currency & Finance by Saeed Nasir.

Teacher’s Qualification: M.COM / MBE / MBA

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