Banking and Insurance: For Universities and Autonomous Colleges of Odisha

Cover
Contents
Preface
Chapter 1: Banking—An Introduction
	1.1 Evolution of Banking
	1.2 Development of Banking in India
	1.3 Role of Banks
		1.3.1 Intermediation
		1.3.2 Payment System
		1.3.3 Financial Services
	1.4 Banking—A Business of Trust
	1.5 Issues and Challenges in Banking in India
		1.5.1 Introduction
		1.5.2 Issues and Challenges
		1.5.3 Risk Management and BASEL Norms
		1.5.4 Consolidation
		1.5.5 Non-Performing Assets (NPAs)
		1.5.6 Financial Inclusion
		1.5.7 Entry of Foreign Banks
		1.5.8 Technology
		1.5.9 Overseas Expansion
		1.5.10 Skilled Manpower
		1.5.11 Customer Retention
	1.6 Concluding Remarks
Chapter 2: Banking System
	2.1 Central Banking
		2.1.1 Functions of Central Bank
		2.1.2 Methods of Credit Control
	2.2 Commercial Banking
		2.2.1 Nature
		2.2.2 Functions
		2.2.3 Credit Creation by Commercial Bank
		2.2.4 Mechanism of Credit Creation
	2.3 Cooperative Banking
		2.3.1 Features of Cooperative Banking
	2.4 Banker–Customer Relationship
		2.4.1 General Relationship
		2.4.2 Special Relationship
Chapter 3: Banking Services and Products
	3.1 Deposit Services and Products
	3.2 Deposit Products
	3.3 Loan or Credit Services
		3.3.1 Term Loan
		3.3.2 Leasing
		3.3.3 Working Capital Facilities
		3.3.4 Post-Sale Finance or Trade Finance
	3.4 Payment and Remittance Services and Products
	3.5 Collection Services and Products
	3.6 Foreign Exchange Services and Products
	3.7 Distribution Services and Products
	3.8 Collection Services and Products
	3.9 Demat Services and Products
	3.10 Safekeeping Services and Products
	3.11 Advisory Services and Products
Chapter 4: Banking Regulations
	4.1 Introduction
	4.2 Banking Regulation in India
	4.3 Regulation by the RBI
		4.3.1 Nature of Business
		4.3.2 Licensing of Banking Companies
		4.3.3 Capital Requirements
		4.3.4 Capacity Adequacy
		4.3.5 Shareholding and Voting Rights
		4.3.6 Appointment of Whole-time and Part-time Directors
		4.3.7 Banking Ombudsman Scheme
		4.3.8 Know Your Customer (KYC)
		4.3.9 Anti Money Laundering (AML)
	4.4 Other Regulators
		4.4.1 SEBI
		4.4.2 IRDA
		4.4.3 Government of India
Chapter 5: Banking Management
	5.1 Risk Management System in Banks
	5.2 Risks in Banking
	5.3 Risk Management
		5.3.1 Objectives of Risk Management
		5.3.2 Risk Management Components
	5.4 Asset–Liability Management (ALM)
		5.4.1 Policy Issues
	5.5 Liquidity Management
	5.6 Cash Management
		5.6.1 Problems in Cash Management
		5.6.2 Cash Management and Advantages to Banks
	5.7 Credit Management
	5.8 Investment Management
Chapter 6: Insurance–An Introduction
	6.1 Introduction
		6.1.1 Definition
	6.2 History of Insurance Policies
	6.3 Rural and Social Sector Obligations
		6.3.1 Rural Sector
		6.3.2 Social Sector
		6.3.3 Obligations
	6.4 Types of Insurance
		6.4.1 Re-insurance
		6.4.2 Life Insurance
		6.4.3 General Insurance
		6.4.4 Property Insurance
		6.4.5 Fire Insurance
		6.4.6 Fidelity Insurance
		6.4.7 Liability Insurance
		6.4.8 Critical Illness Insurance
	6.5 Policy Conditions
		6.5.1 Assignment
		6.5.2 Nomination
	6.6 Principles of Insurance
		6.6.1 Principle of Utmost Good Faith
		6.6.2 Principle of Insurable Interest
		6.6.3 Principle of Indemnity
		6.6.4 Principle of Actuary
		6.6.5 Principle of Legality
		6.6.6 Financial Principles
		6.6.7 Economic Principles
		6.6.8 Principle of ‘Causa Proxima’
Chapter 7: Insurance Regulatory Environment
	7.1 Insurance Regulatory and Development Authority (IRDA)
		7.1.1 Objectives of IRDA
		7.1.2 Powers and Functions of IRDA
		7.1.3 Registration of Insurance Companies
	7.2 Licensing of Insurance Agent
		7.2.1 Pre-requisites for Grant of License
	7.3 Power of Government to Make Rules
	7.4 Licensing of Surveyors and Loss Assessors
		7.4.1 Eligibility
		7.4.2 Investigation
	7.5 Investment of Assets and Approval of Investments/Approved Investments
		7.5.1 Approved Investment for Life Insurance Business
		7.5.2 Approved Investments for General Insurance Business
		7.5.3 Insurance Advertisements and Disclosures
	7.6 Acturial Services
		7.6.1 Actuary
		7.6.2 Product Pricing—Actuarial Aspects
	7.7 Insurance Broker
		7.7.1 Licensing of Brokers
		7.7.2 Capital Requirement for Brokers
		7.7.3 Functions of Brokers
		7.7.4 Code of Conduct for Brokers
	7.8 Insurance Agents
		7.8.1 Various Types of Commission That are Usually Paid to Agents
	7.9 Protection of Policyholders
		7.9.1 How PPI Protects
Chapter 8: Understanding Risk and Risk Management in Insurance
	8.1 Defining Risk
	8.2 Causes of Loss
		8.2.1 Peril
		8.2.2 Hazard
	8.3 Categories of Risk
		8.3.1 Pure Risk and Speculative Risk
		8.3.2 Fundamental and Particular Risk
		8.3.3 Financial and Non-Financial Risk
		8.3.4 Static and Dynamic Risk
	8.4 Burden of Risk on Society
	8.5 Risk Management
	8.6 Importance of Risk Management in the Field of Insurance
	8.7 Risk Management Objective (RMO)
	8.8 Risk Management Process
		8.8.1 Risk Identification
		8.8.2 Selection of Risk
		8.8.3 Risk Evaluation
		8.8.4 Appropriate Risk Management Techniques
		8.8.5 Periodic Review
Chapter 9: Extension of Insurance to Niche Areas
	9.1 Health Insurance
		9.1.1 Managed Health Care
		9.1.2 Individual Health Insurance
		9.1.3 Benefits and Type of Policies
		9.1.4 Medical Expense Insurance
		9.1.5 Healthcare via Health Insurance
	9.2 Third Party Administrators (TPA)
		9.2.1 Functioning of TPA
		9.2.2 Conditions of and Procedures for Licensing of TPA
	9.3 Extension of Insurance to the Area of Pension
		9.3.1 Group Superannuation Scheme
		9.3.2 Pension Options
		9.3.3 Contributions and Who Pays
		9.3.4 Benefits on Retirement
		9.3.5 Tax Benefits
	9.4 Bancassurance
		9.4.1 Benefits of Bancassurance
	9.5 Claim Management
		9.5.1 Claim
		9.5.2 Claim Types
		9.5.3 Claim Settlement Procedure in General Insurance
	9.6 Underwriting
		9.6.1 Sources of Data Required for Underwriting
Chapter 10: Micro Finance–An Overview
	10.1 Introduction
	10.2 Defining Micro Finance
	10.3 Micro Finance Products
		10.3.1 Micro Credit
		10.3.2 Micro Savings
		10.3.3 Micro Insurance
		10.3.4 Pension and Provident Fund
		10.3.5 Payment Transfers
	10.4 Micro Finance Services
	10.5 Supply of Micro Finance
		10.5.1 Micro Finance Credit-lending Models
Test your Knowledge
	Chapter 1: Banking–An Introduction
	Chapter 2: Banking System
	Chapter 3: Banking Services and Products
	Chapter 4: Banking Regulations
	Chapter 5: Banking Management
	Chapter 6: Insurance–An Introduction
	Chapter 7: Insurance Regulatory Environment
	Chapter 8: Risk Management in Insurance
	Chapter 9: Extension of Insurance to Niche Areas
	Chapter 10: Micro Finance–An overview
Bibliography
Index