VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
Banker customer relationship
1. What Is A Banker
The Bill of Exchange Act, 1882 (U.K)
“A banker includes any body of persons, whether
incorporated or not , who carry on the business of
banking”
According to Heber L. Hart,
A banker or bank is a person or company carrying
on the business of receiving moneys, and collecting
drafts, for customers subject to the obligation of
honoring cheques drawn upon them from time to
time by the customers to the extent of the
amounts available on their current accounts”
University of South Asia 1
2. What Is A Banker
Sir John Paget maintains that no one
can be a banker who does not:
Take money on deposit or current account
Issue and pay cheques drawn upon himself
Collect cheques, crossed and uncrossed,
for his customers.
University of South Asia 2
3. Functions of Banks
Acceptance of deposits
Lending and investment of deposits
Discounting of bills
Drawing, making, accepting, discounting,
buying, selling, collecting and dealing in bills
of exchange, hundies, promissory notes,
coupons, drafts, bills of lading, railway
receipt, warrants, debentures, certificates and
other instruments and securities.
University of South Asia 3
4. Functions of Banks
Issuing of letter of credit, travellers cheques.
Buying and selling of foreign exchange
Purchasing, selling or underwriting shares,
stocks, debentures/TFCs, bonds and
investments of all kinds
Buying and selling bullion.
Receiving bonds, scripts and all kinds of
valuables on deposit or for safe custody or as
agent.
University of South Asia 4
5. Functions of Banks
Collecting and transmitting money and
securities from one place to another
Transacting guarantee and indemnity
business
Undertaking and executing trusts
Undertaking the administration of
estates as executors, trustees or
otherwise.
University of South Asia 5
6. Functions of Banks
Rendering advice to customers in respect of
investments, financial matters etc
Doing all such other things as are incidental
or conducive to the promotion of business of
banking company including management and
acquiring and holding and generally dealing
with any property or any right, title or interest
in such property which may form the security
for any loans or advances.
University of South Asia 6
7. What Constitutes A Customer
According to Sir John Paget,
“to constitute a customer there must be
some recognizable course or habit of
dealing in the nature of regular banking
business.”
Two things are important:
Some recognizable course or habit of
dealing between him and the bank.
That the transactions were to be in the
nature of regular banking business.
University of South Asia 7
8. What Constitutes A Customer
According to Heber L. Hart,
“A Customer is a person who has an
account with a banker”
Bills of Exchange Act (U.K) 1882 S-82
“A person is a customer of a bank if he
keeps either a deposit account with the
bank or it would seems, if the bank
systematically transacts with him, any kind
of banking business.”
University of South Asia 8
9. Rights of A Customer
Draw cheques against his available bank
balance.
Give stop payment mandate and removal
thereof.
Terminate his deposit account and claim
payment of all sums lying in his account.
Share in the profits/losses as earned and
determined by the bank in case of PLS based
deposits.
Have a periodical bank statements of his
account.
University of South Asia 9
10. Rights of A Customer
Get the errors rectified in the bank
statement , if any.
Deposit cash and cheques for collection in his
account.
Have new cheque book after utilizing the
previous one.
Be informed about any direct operations in
his account by the bank.
Sue the bank for wrongful dishonor of his
cheque along with damages.
University of South Asia 10
11. Rights of A Customer
Cross, indorse or cancel cheques and
other instruments.
Sue the bank for wrongful disclosure of
his bank account/balance.
Ask for his balance within business
hours.
University of South Asia 11
12. Duties of A Customer
Keep the cheque book under lock and key.
Take reasonable care in drawing cheques.
Disclose his banker about missing cheques.
Draw the cheques on the cheque book
provided by his bank.
Present cheques and other instruments for
encashment/collection within business hours.
Notify the bank in case of any disagreement
in the bank statement.
Abide by all rules and regulations of the bank.
University of South Asia 12
13. Rights Of A Banker
Recover charges, if any
Recover outstanding amount of finance and
markup due thereon.
Sell securities upon default by the customer
after serving him reasonable notice.
Stop operation of the account in the following
circumstances:
Death of the customer
University of South Asia 13
14. Rights Of A Banker
Insanity of Customer
Under orders of the court
Bankruptcy of customer
Unsatisfactory operation
Retain customer’s funds unless demand arises
for its repayment.
Disclose information of his customer’s
account under special circumstances.
Take pledge of hypothecated stocks in case
customer fails to adjust his loan account as
per agreed terms.
University of South Asia 14
15. Duties Of A Banker
Honour cheques of the customers against his
available balance.
Abide by standing instructions of the
customer.
In case, deposit account is closed by the
customer, to pay the entire amount through
banker’s /P.O , after satisfying claims if any
Provide periodical bank statements
Collection of customer’s cheques.
Maintain secrecy of his customer’s account.
University of South Asia 15
16. Duties Of A Banker
Inform his customer about:
Dishonor of cheques/bills along with reason
therof
Closure of account
Suspension/ stopping operations of his
account
Bank’s intention to sell securities belonging
to the customer.
University of South Asia 16
17. Banker’s Duty of Secrecy
A banker must not disclose the state of his
customer’s account or any information
concerning the customer or his affairs.
Any disclosure of customer’s affairs by his
banker can affect the credit or reputation of
the customer and the banker may be held for
damages for breach of contract.
The obligation of secrecy, however may not
be considered essential on the following
occasions:-
University of South Asia 17
18. Banker’s Duty of Secrecy
Where there is a compulsion of law.
Where there is duty to the public to disclose.
Where the interest of the bank require
disclosure.
Where there is an express or implied consent
of the customer.
Where there is an established practice
amongst bankers to exchange information on
their customer’s account as a common
courtesy.
University of South Asia 18