Banking and Insurance

Course Description

The Banking and Insurance syllabus for courses typically offered in senior secondary education (like Class 11 and Class 12 in India) or professional undergraduate courses (such as B.Com, BBA, etc.) covers a wide range of topics related to the functioning of the banking sector and the insurance industry. Here’s an overview of what the syllabus might typically include for Banking and Insurance subjects:

What You’ll Learn From This Course

1. Banking Syllabus

Introduction to Banking

• Definition and evolution of banking.
• Types of banks: Commercial banks, cooperative banks, development banks.
• Functions of banks: Primary (accepting deposits, lending loans), secondary functions (agency functions, general utility services).
• Banking structure in India: RBI, public sector banks, private sector banks, and foreign banks.

Banking Operations

• Types of bank accounts: Savings, current, recurring, fixed deposit accounts.
• KYC (Know Your Customer) norms, Anti-Money Laundering (AML).
• Cheque clearing process, electronic clearing system (ECS).
• Online banking: Internet banking, mobile banking, and payment gateways.
• Digital banking products: UPI, NEFT, RTGS, IMPS, and wallets.

Reserve Bank of India (RBI)

• Functions of RBI: Monetary authority, regulator of financial systems, currency issuer, banker’s bank, lender of last resort.
• Monetary policy tools: Repo rate, reverse repo rate, CRR, SLR, open market operations.

Financial Markets and Instruments

• Types of financial markets: Money market, capital market.
• Instruments: Treasury bills, certificates of deposit, bonds, stocks.
• Role of banks in capital markets and government securities.

Banking Regulations and Reforms

• Banking Regulation Act, 1949.
• Reforms in the banking sector: Narasimham Committee recommendations.
• Basel norms and risk management in banks.
• NPAs (Non-Performing Assets) and asset quality management.

International Banking

• Role of international banking.
• Foreign exchange market: Exchange rate mechanisms, forex reserves.
• International banking regulations: SWIFT, FATF.

2. Insurance Syllabus

Introduction to Insurance

• Definition, nature, and significance of insurance.
• History and evolution of the insurance sector.
• Principles of insurance: Utmost good faith, insurable interest, indemnity, contribution, subrogation, proximate cause.

Types of Insurance

• Life Insurance:
• Types of life insurance policies: Term insurance, whole life, endowment, unit-linked insurance plans (ULIPs).
• Riders in life insurance policies.
• Settlement process, maturity claims, death claims.
• General Insurance:

• • Fire insurance, marine insurance, health insurance, motor insurance, and property insurance.
  • Policy conditions, exclusions, and endorsements.
  • Role of TPA (Third-Party Administrator) in health insurance.

• Reinsurance:
• Concepts of reinsurance, types of reinsurance: Facultative and treaty reinsurance.
• Role of reinsurers in managing risks.

Regulation of Insurance in India

• Role of the Insurance Regulatory and Development Authority of India (IRDAI).
• Insurance Act, 1938.
• Solvency norms, capital adequacy, risk management in insurance companies.

Insurance Underwriting and Claims

• Principles and process of underwriting.
• Risk assessment, premium calculation.
• Claims procedure: Reporting, documentation, investigation, settlement of claims.
• Fraud management in insurance.

Insurance Marketing

• Marketing of insurance products, customer relationship management (CRM) in insurance.
• Distribution channels: Agents, brokers, banc assurance.
• Role of technology in insurance: Online policies, claim settlement apps, and insurrect.

Risk Management

• Understanding risk in insurance.
• Methods of risk management: Avoidance, retention, transfer, and sharing.
• Role of insurance in mitigating personal and business risks.

3. Banking and Insurance Integrated Topics

Bank Assurance

• Concept of bancassurance (tie-up between banks and insurance companies).
• Role of banks in selling insurance products.
• Regulatory framework governing bancassurance.

Insurance in Banking Operations

• Bank deposits insurance: Deposit Insurance and Credit Guarantee Corporation (DICGC).
• Credit life insurance, mortgage insurance.
• Role of insurance in protecting loan repayments and bank liabilities.

Financial Inclusion and Rural Banking

• Role of banks in financial inclusion, microfinance institutions (MFIs).
• Rural banking products, insurance products for rural customers.
• Government schemes: Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY).

Emerging Trends in Banking and Insurance

• Fintech innovations: AI, blockchain, big data in banking and insurance.
• The impact of digital technologies and data analytics on risk assessment and fraud detection.
• Regulatory challenges in the digital era.

4. Project Work/Practical Applications

• Practical projects on banking operations like loan processes, customer relations, banking ethics.
• Projects on insurance risk assessment, claims processing, underwriting, and marketing strategies.
• Case studies on banking failures, fraud detection, insurance policy lapses, and settlements.