This document discusses the banker-customer relationship. It defines a customer as someone who has an account, such as a deposit or current account, with a bank. It outlines the qualifications needed to be a customer, including not being a minor and being of sound mind. The rights of customers include drawing checks against their credit balance and suing the bank for wrongful dishonor of checks or lack of secrecy. Duties of customers include timely check presentation and safekeeping of checkbooks. The rights of bankers include lien and set-off. The relationship can terminate via notice, death, insanity, insolvency, court order, or unsatisfactory operations.

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2. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
Customer/Account Holder
Lord Lindley remarked that a customer is a person
who has “some sort of account” either deposit or
current account or similar relation with a banker.
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3. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
QUALIFICATION OF A CUSTOMER.
 He should not be a minor.
 He should be a person of sound mind.
 He shall not have been debarred from entering into
any contract, under any law.
 Offer and acceptance.
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4. BANKER CUSTOMER RELATIONSHIP
BANKER CUSTOMER RELATIONSHIP.
RIGHTS OF CUSTOMER.
 To draw cheques against his credit balance.
 To receive statement of account.
 To sue the bank for wrongful dishonor of his
cheques.
 To sue the bank for not maintaining secrecy of his
account.
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5. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
DUTIES OF CUSTOMER.
 To present the cheques for payment within
business hours.
 To present the cheques for payment within a
reasonable time from the issuance of cheques.
 To keep his cheques book under lock & key.
 To draw the cheques carefully.
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6. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
RIGHTS OF BANKER.
Right of Lien.
Lien is a right of a creditor to retain the goods
and securities owned by the debtor until the
debt due from him is paid.
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7. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
RIGHT OF SET-OFF.
A banker like other creditors possess the right
of set-off which enable him to combines two
accounts in the name of same customer and
adjust the debit balance in one account with
the credit balance in the other. The right to
combine two accounts is known as the right of
set-off.
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8. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
Essential Features of Set-off.
 The customer has been given a formal notice
regarding the banker’s intention to exercise
the right of set off.
 The capacity of the a/c holder in all the
accounts must be the same.
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9. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
 The right can be exercised only in respect of
debts due and not in respect of future or
contingent debts
 The right can be exercised in respect of
debts which are certain.
 When a bank receives a garnishee order
 For the purpose of this right of set-off the
different branches of the bank will constitute
one entity
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10. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
FOLLOWING ACCOUNTS CAN BE SUBJECT TO SET-OFF.
 Debit balance of Trust Account can be set-off
against the credit balance of trustees private
account after the trustee is personally liable.
 A deposit account can be set-off against an
overdraft account.
 If all the Joint a/c holders have given individual
guarantees, a joint a/c can be set-off against
individual a/c.
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11. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
BANKER’S DUTY OF SECRECY.
One of the most important obligation of a
banker is to take utmost care not to disclose
the state of his customer account as such
disclosure may do considerable harm to his
reputation and business. But this obligation to
maintain secrecy is not un-qualified. In certain
circumstances the banker has to make such
disclosure and the customer can not challenged
the banker legally.
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12. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
Banker’s duty of secrecy is revoked when:
 Under Compulsion of Law.
 Disclosure in Public Interest.
 Disclosure in Bank’s Interest.
 Under Common Courtesy Among Bankers.
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13. BANKER CUSTOMER RELATIONSHIP.
BANKER CUSTOMER RELATIONSHIP
TERMINATION OF RELATIONSHIP.
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Notice by a customer.
Notice by a banker.
Death of customer.
Customer insanity.
Customer insolvency.
Order of Court.
Un-satisfactory Operation.
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