In banking, a banker is an officer responsible for conducting banking business and holds several rights, including the general lien, right of set-off, and banker’s right of appropriation. A banker may charge interest and commission, and also has the authority to close customer accounts under specific circumstances such as insufficient balance or insolvency. The rights and obligations outlined aim to ensure effective service and debt management between the bank and its customers.

1. RIGHTS OF A BANKER MEANING
IN BANKING, A BANKER IS AN OFFICER OF A
BANK WHO CONDUCTS THE BUSINESS OF
BANKING. A BANKER HAS SOME RIGHTS AND
OBLIGATIONS THAT MUST BE IMPLEMENTED
AND FOLLOWED TO PROVIDE THE BEST
BANKING SERVICES TO THE CUSTOMERS.

2. RIGHTS OF A BANKER
1. Rights of General Lien: One of the most important rights enjoyed by a bank is the right of a general lien. Lien means the
right of the creditor to retain the goods or securities owned by the debtor until the debt due from him is repaid.
2. The Right of the Set-off: Right of set-off is the right of a debtor to adjust the amount due to him from a creditor against
the amount payable by him to the creditor to determine the net balance payable by one to another.
3. Banker’s Right of Appropriation: A customer may owe several distinct debts to the bank when the customer deposits
some money without specific instructions, and it is insufficient to discharge all debts. The problem arises as to which debt
this amount should be adjusted. In the absence of any specific instructions, the bank has the right to appropriate the
deposited amount to any loan, even to a time-barred debt.
4. Right to Charge Interest and Commission: A banker has the right to charge interest and commission on the loans and
advances given by him.
5. Right to Close the Account: A banker has the right to close the account of a customer in the following circumstances:
(a) If the customer is not maintaining the minimum balance required by the bank. (b) If the customer issues a cheque
without sufficient funds in his account. © If the customer becomes insolvent.

3. RIGHT TO SET OFF
The right of set-off is the right of a bank to
adjust the amount due to it from a debtor
against the amount payable by it to the debtor
to determine the net balance payable by one
to another 1. The right of set-off can be
exercised subject to the fulfillment of the
following conditions :
1.All the funds must prima facie belong to the
customer.
2.When debt amounts are certain.
3.When the debts are in the same rights.
4.There is no contract expressed or implied in
contrast.

4. RULE IN CLAYTON’S CASE
The rule in Clayton’s case
creates a presumption as to the
appropriation of payments into a
running account being
attributable to the repayment of
the oldest debits from the
account. In other words, when in
the absence of a contrary
intention, payments are
presumed to be appropriated to
debts in the order in which the
debts are incurred.

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