The document discusses the relationship between banks and their customers. It notes that there is a general relationship where banks accept deposits and provide loans, making the bank a debtor and customer a creditor or vice versa. It also describes special relationships where banks provide additional services, taking on roles like trustee, bailee, lessor, and custodian. The rest of the document covers topics like the importance and benefits of customer relationship management (CRM) in banking, strategies adopted in the banking sector using CRM, types of e-banking services provided, challenges of e-banking, the role of financial technology, tax havens, know your customer (KYC) norms, and anti-money laundering measures.

1. Chapter 4: Banker and Customer
Relation
GENERAL RELATIONSHIP
If we look at Sec 5(b) of the Banking Regulation Act, we
would notice that the bank’s business is accepting deposits
for lending. Thus, the relationship arising out of these two
main activities is known as General Relationship.
1. DEBTOR AND CREDITOR
2. CREDITOR AND DEBTOR

2. SPECIAL RELATIONSHIP
In addition to these two activities banks also undertake other
activities mentioned in Sec.6 of the Banking Regulation Act. In
addition to opening a deposit/loan account banks provide a
variety of services, which makes the relationship more wide and
complex. Depending upon the type of services rendered and the
nature of the transaction, the banker acts as a bailee, trustee,
principal, agent, lessor, custodian, etc.
1. TRUSTEE AND BENEFICIARY (BANK AS A TRUSTEE AND
CUSTOMER AS A BENEFICIARY)
2. BAILEE AND BAILOR (BANK-BAILEE AND CUSTOMER-
BAILOR)
3. LESSOR AND LESSEE (BANK- LESSOR AND CUSTOMER-
LESSEE)

3. Importance of CRM
1.Improved Customers Retention
2.Boosted Sales
3.More Effective Marketing Efforts
4.Increased Productivity
5.Personalised Customer Relationships

4. Benefits of CRM in banking
I. Boosted Sales
II. Increased Lead Conversion
III. Personalized Customer Journeys
IV. Increased Productivity
V. More Efficient Communication
VI. Inter-Department Data Tracking
VII. Better Service
VIII.Improved Customer Experience
IX. Increased Customer Loyalty

5. Strategies adapted in banking sector
a. Utilize data to enhance services.
b. Customer experience.
c. Operational enhancements.
d. Workforce transformation.
e. Security and compliance

6. Types of E-banking
A. Internet Banking.
B. Mobile banking.
C. Automated Teller Machine (ATM's).
D. Smart Cards.
E. Electronic Funds Transfer (EFT).
F. Electronic Clearing Services (ECS).
G. Telebanking.
H. Door-Step Banking

7. CHALLENGES IN E-BANKING
 1.Implementation of global technology
 2.Strengthening the public support
 3.Confidentiality, integrity and authentication
 4.Customer Satisfaction
 5.Availability of Personnel services
 6.Non- Performing Assets (NPA)
 7.Handling Technology
 8.Competition

8. Role and raise of financial
technology in banking system
Banking environment has become highly competitive today. To be able
to survive and grow in the changing market environment banks are
going for the latest technologies,
The Software Packages for Banking Applications in India had their
beginnings in the middle of 80s,
The Software Packages for Banking Applications in India had their
beginnings in the middle of 80s,
The middle and late 90s witnessed the tornado of financial reforms,
deregulation globalization etc.
Technology has continuously played on important role in the working of
banking institutions and the services provided by them. Safekeeping of
public money, transfer of money, issuing drafts, exploring investment
opportunities and lending drafts, exploring investment being provided.

9. Tax Havens
Wealth that has been illegally acquired or concealed from the
purview of tax and other authorities, as legitimate, through
the use of methods that obscure the identity of the ultimate
beneficiary and the source of the ill-gotten profits. It is a
criminal offence whose effects usually are deleterious for the
functioning of a polity and pernicious for the socioeconomic
fabric, both domestically and globally. The process of
laundering money may occur in a variety of ways, such as with
the shrewd exploitation of a complex, interweaving web of
secrecy jurisdictions and/or tax havens, the manipulation of
the concept of legal persons and legal arrangements to
concoct ‘shell companies’ that can operate as covers for
corrupt individuals, the abuse of loopholes in existing anti-
money laundering legislation, the weak implementation of
these rules, the corruption of authorities

10. KYC Norms
KYC process includes :
o ID card verification
o Face verification
o Document verification such as utility bills as
proof of address
o Biometric verification.
Banks must comply with KYC regulations and
anti-money laundering regulations to limit fraud.

11. Anti-Money Laundering Measures
 Banks should keep in mind that the information
collected from the customer for the purpose of
opening of account is to be treated as confidential and
details thereof are not to be divulged for cross selling
or any other like purposes. Banks should, therefore,
ensure that information sought from the customer is
relevant to the perceived risk, is not intrusive, and is
in conformity with the guidelines issued in this
regard. Any other information from the customer
should be sought separately with his/her consent and
after opening the account.

12. REFERENCES
https://bankingdigests.com/blog/banker-customer-
relationship/#:~:text=The%20relationship%20betw
een%20a%20banker,or%20availed%20by%20the%2
0customer
https://vikaspedia.in/social-welfare/financial-
inclusion/know-your-customer-guidelines
https://blog.ipleaders.in/relationship-between-
banker-customer/
https://gfgc.kar.nic.in/vemagal/FileHandler/61-
b8aa7bea-e723-4345-a2bc-6b8fbf7afac5.pdf

13. Thank you...