The Banking Law in Theory and Practice by Dr. S. N. Gupta (7th Edition, 2025) stands as the most authoritative, exhaustive, and scholarly exposition on Indian banking law. Spanning three comprehensive volumes, this classic work bridges doctrinal theory with modern banking practice, providing a complete and up-to-date analysis of banking regulation, commercial transactions, financial services, and digital banking in India and abroad.
First published over four decades ago, this treatise has evolved into a cornerstone reference for bankers, lawyers, judges, regulators, and academicians, capturing the dynamic developments in banking jurisprudence, financial policy, and regulatory governance. The 7th Edition (2025) has been thoroughly revised and expanded, incorporating the latest amendments, case laws, RBI circulars, fintech innovations, and judicial decisions up to 2025.
⚖️ Key Features of the 7th Edition (2025)
💼 Comprehensive 3-Volume Coverage:
Presents a detailed and sequential study of banking law, banking practice, and financial technology, integrating theory with practical applications across all major branches of banking operations.⚖️ Updated with the Latest Developments:
Includes discussions on:The Banking Regulation (Amendment) Act, 2020
RBI’s Master Directions (2023–2025) on NBFCs, digital lending, and KYC
Digital Personal Data Protection Act, 2023 and its implications for financial data
Supreme Court rulings on NPAs, debt recovery, and insolvency
Recent RBI and SEBI circulars on payment systems, co-lending, and fintech regulation
🏦 Theoretical and Practical Integration:
Offers a unique balance of legal philosophy, judicial interpretation, and real-world banking operations, making it equally relevant to practitioners and scholars.📚 Exhaustive Coverage of Core Banking Law Areas:
Banking Regulation Act, 1949
Reserve Bank of India Act, 1934
Negotiable Instruments Act, 1881
SARFAESI Act, 2002
Insolvency and Bankruptcy Code, 2016
FEMA, 1999 and anti-money laundering (PMLA, 2002) provisions
📊 Focus on Contemporary Banking Challenges:
Includes comprehensive analysis on:Digital Banking and Fintech – AI-based lending, neobanks, UPI, and payment gateways
Cryptocurrency Regulation and RBI’s stance on virtual assets
Cybersecurity & Data Privacy in Banking Operations
ESG and Sustainable Finance initiatives
Financial Inclusion & Priority Sector Lending reforms
💡 Judicial and Regulatory Insights:
Discusses landmark judgments and regulatory guidelines shaping Indian banking jurisprudence, such as:Swiss Ribbons Pvt. Ltd. v. Union of India (2019)
Vijay Mallya v. State Bank of India (2023)
Reserve Bank of India v. Jayantilal N. Mistry (2015)
ICICI Bank v. Official Liquidator (2021)
Lalit Kumar Jain v. Union of India (2021)
📖 Practical Aspects for Bankers & Lawyers:
Includes procedural guidance on:Documentation for loans, guarantees, and securities
Bankers’ duties, liabilities, and customer relationship
Recovery proceedings before DRTs, NCLTs, and High Courts
Legal due diligence in banking mergers and acquisitions
📚 Volume-Wise Overview
Volume I – Foundations and Regulatory Framework
Origin and evolution of banking institutions in India
Nature and definition of banking business
Reserve Bank of India – constitution, powers, and monetary control functions
Licensing, regulation, and governance of banking companies
Capital adequacy, prudential norms, and Basel III framework
Cooperative and regional rural banks: legal structure and supervision
Volume II – Banking Operations, Customer Relations & Instruments
Banker–customer relationship: duties, rights, and liabilities
Principles governing loans, advances, and overdrafts
Securities for advances – pledge, mortgage, hypothecation, and lien
Negotiable Instruments Act, 1881 – promissory notes, bills, cheques, and dishonour
Legal issues in electronic funds transfer, UPI, NEFT, RTGS
Documentation, guarantees, and indemnities
Money laundering, KYC, and compliance obligations
Banker’s books evidence and confidentiality norms
Volume III – Specialized Banking, Technology & Emerging Areas
Banking and insolvency: IBC, 2016 and debt recovery mechanisms (DRT/SARFAESI)
Cross-border banking and foreign exchange management under FEMA
Digital banking, fintech collaborations, and RBI regulatory sandbox
Cybercrimes in banking – frauds, data theft, and electronic evidence
ESG, green banking, and ethical responsibilities of banks
International banking and trade finance – letters of credit, factoring, and forfaiting
Future of banking law in the age of AI and digital transformation
💼 Highlights of the 2025 Edition
🔹 Fully revised and expanded to include developments up to 2025
🔹 Case law and RBI circulars integrated under each chapter
🔹 Discussion on emerging areas like digital assets, AI in banking, and ESG lending
🔹 Comparative perspective: Indian, UK, EU, and U.S. regulatory frameworks
🔹 Includes appendices with model forms, RBI notifications, and key circulars
🔹 Cross-references to connected laws – Companies Act, IBC, PMLA, FEMA, and IT Act
🎯 Recommended For
🏛️ Judges and Lawyers – for references in banking litigation, recovery, and insolvency cases
💼 Bankers and Financial Professionals – to understand the legal underpinnings of banking operations
🧑🎓 CA, CS, and CMA Students – studying banking and financial regulations
🎓 Law Students & Academicians – for courses in banking law, financial regulation, and corporate governance
🧠 Researchers & Policy Analysts – exploring banking reforms and regulatory policy
👨🏫 About the Author
Dr. S. N. Gupta is a distinguished banking law scholar, economist, and legal expert with over four decades of experience in teaching, research, and consultancy. A former banker and academic, he has served as Advisor to several financial institutions and Consultant to the Reserve Bank of India and World Bank projects.
He has authored several acclaimed titles in banking, finance, and commercial law, known for blending conceptual clarity, policy insight, and practical analysis. His deep understanding of both legal principles and banking operations makes his works indispensable to professionals and scholars alike.
🏛️ Conclusion
The Banking Law in Theory and Practice (7th Edition, 2025) by Dr. S. N. Gupta, published by Lexis Nexis, is the definitive treatise on Indian and global banking law—an essential resource that combines theoretical analysis, practical banking procedures, and evolving regulatory trends.
Covering every major development from traditional banking to digital transformation, this three-volume masterpiece remains unparalleled in scope, clarity, and authority, offering a complete understanding of the legal foundations, regulatory framework, and future direction of the banking industry.
📗 In Summary:
A monumental 3-volume work that unites law, finance, and practice,
“The Banking Law in Theory and Practice” (7th Edition, 2025) by Dr. S. N. Gupta stands as the most comprehensive and enduring reference for anyone seeking to master the complexities of modern banking law and policy.
