Foundations of Modern Banking
COM1MN106 - Foundations of Modern Banking study notes and resources. Browse module-wise notes, preview available PDF resources, and use the related links on this page to move between nearby subjects and study guides.
Chapter Wise Notes
About This Subject
Foundations of Modern Banking (Course Code: COM1MN106) is a banking minor in B.Com Semester 1 under the Calicut University FYUGP 2026 curriculum. The course explores the principles, practices, and technological transformations of commercial banking in India. Students study the banker-customer relationship, deposit products, lending practices, negotiable instruments (cheques, bills of exchange, promissory notes), the clearing system, digital payment rails (NEFT, RTGS, IMPS, UPI), core banking solutions (CBS), non-performing assets (NPAs), and central bank monetary regulations under the Reserve Bank of India Act 1934 and Banking Regulation Act 1949.
Key Topics Covered
- Evolution and functions of commercial banks: primary, secondary, and agency services
- Banker-customer relationship: general relationship (debtor-creditor) and special fiduciary relationships
- Types of bank accounts: savings, current, recurring, fixed deposits, and KYC verification procedures
- Lending operations: loans, overdrafts, cash credits, discounting of bills, and principles of sound lending
- Negotiable Instruments Act 1881: cheques, crossing of cheques, endorsement types, and dishonour of cheques (Section 138)
- Digital banking transformation: Core Banking Solution (CBS), ATM networks, Internet banking, and Mobile banking
- Electronic payment mechanisms: NEFT, RTGS, IMPS, Unified Payments Interface (UPI), and Bharat BillPay
- Banking challenges: Non-Performing Assets (NPAs), SARFAESI Act overview, and RBI Basel regulatory guidelines
Learning Outcomes
- Understand the statutory framework and operational functions of commercial banks in India.
- Examine the legal rights and duties arising from the banker-customer relationship.
- Explain the legal provisions regarding crossing, endorsement, and dishonour of cheques under NI Act 1881.
- Analyze electronic banking architectures including CBS, RTGS, NEFT, and UPI payment gateways.
- Evaluate credit risk appraisal and the regulatory framework managing Non-Performing Assets (NPAs).
Exam Preparation Tips
Memorize the crossing of cheques (General vs. Special) with exact diagrams. Master Section 138 penalties for cheque bouncing under the Negotiable Instruments Act. Know the distinctions between NEFT, RTGS, and IMPS in tabular format, and review the functions of RBI as a lender of last resort.
Frequently Asked Questions
What is Foundations of Modern Banking about?
It covers commercial banking operations, banker-customer relations, cheques/negotiable instruments, digital banking (UPI, RTGS), and NPA management.
Which semester includes COM1MN106?
It is a minor course in B.Com Semester 1 under Calicut University FYUGP 2026.
Where can I find notes for Foundations of Modern Banking?
Complete module notes and downloadable PDFs are available on DegreeLive.
Related Subjects
Explore notes for other subjects in Semester 1 of BCom: