Class Roll No.
Mid Term Examination, September 2017
B.A.LL.B. (HONS.)
SEMESTER VII IX
Banking Law (Opt.)
Max. Marks: 20 Max. Time: 1:30 Hrs.
Note: Answer any TWO questions out of three.
The number of marks carried by a question/ part is indicated against it.
1. 'Owing to the arbitrary practice of advancing loans and receiving deposits, the need for a more
systematic institution emerged thus an institution was required to provide safety and security to
the deposits of the customers which would increase public faith and confidence. Banks emerged as
a mechanism to avoid settling of financial powers in the hands of a few individuals and controlling
the demand and supply of credit and money'.
In the above context discuss the origin, historical development and significance of Indian banking
system. (Marks 10)
2. 'Banking is a commercial function. It means, acceptance, for the purposes of lending or
investment of deposit of money from public, repayable on demand or otherwise. Hence a customer
is a consumer'.
Elaborate. Also discuss the legal characteristic of banker customer relationship. (Marks 10)
3. Write short notes on the following:
a. Regional Rural Banks
b. Cooperative Banks
c. Priority sector lending (Marks