The relationship between a banker and a customer depends on the type of transaction. When the banker agrees to open the account, he is legally accepting the offer and thus a binding contract is created. The depositors are creditors and the bank is the debtor. Banker customer relationship in detail pdf download.
Generally, there are many duties of a banker in a bankercustomer relationship. The relationship between a banker and a customer depends on the activities. Or the relation between a banker and a customer is that of a debtor and a creditor. Different types of bankers customer relationship exits in banking system. Thus the relationship between a banker and customer is the transactional relationship. Banking law the relationship between banker and customer. So, the relationship terminates if the account is closed for any reason. Concept of banker and customer relationship banking school. These responsibilities are known as the special features of relationship between a banker and a customer. The relationship between bank and customer, specifically the holder of a current account, must be explained in terms of the general principles of the law of obli gations a nd, in part icular. Banker customer relationship free download as powerpoint presentation. An appraisal of the relationship between banker and. The relationship subsisting between banker and customer is basically contractual and fundamentally that of debtor and creditor. The general relationship between banker and customer.
Bankers journal, february 2010, the banking law in theory and practice. The relationship between banker and customer falls under two broad categories viz. General relationship between the banker and customer. The fundamental obligations of a banker towards its customers are as follows. An appraisal of the legal relationship between a banker. Milnes holden t, banking law and practice in india, the researcher follow the book to know about the banker and customer relationship in india. What is the legal relationship between the banker and his. Banking means accepting deposits from public, for the purpose of lending, repayable on demand or otherwise with drawable by. General relationship creditordebtor relationship between the customer having a deposit account and the banker. Firstly, it is the duty of banker to honor the cheques issued by customers. Depositor is the lender and the banker is the borrower.
Chapter 4 banker and customer relationship shodhganga. Nov 05, 20 determination of contract between banker and customer the banker and its customer may mutually agree to extinguish their rights and obligations under the banking contract and this is expressed in the latin phrase eodem modo quo oritur, eodem modo dissolvitur which means what has been created by agreement may be extinguished by agreement. This article will seek to analyze the legal implications of this revolution in the context of the debtor creditor relationship between banker and customer. The terms and conditions governing the relationship are not leaked by the banker to any third party. The first part of this article seeks to explain and shed more light on banker customer relationship, the legal position as to. Banker and customer general relationship mortgage law. The dealing between the banker and customer must be of the nature of the banking business. Banker a banker is the one who gets into debts and creates debts. For these services, the banker charges a nominal commission from the customer. Learn vocabulary, terms, and more with flashcards, games, and other study tools. The relationship between the banker and customer is, generally, like a commercial transaction. This contract is cr and its customer is a loan contrac owes him that money and vice v between banker and customer is act, 1881 and the contract act, vital. The relationship between banker and a customer can be.
Apr 11, 2017 whenever an individual opens an account in a bank an obligation is automatically created on the banker towards its customer with certain rights and responsibilities. Hill, sir john paget remarks, the relation of a banker and a customer is primarily that of debtor and creditor, the respective positions being determined by the existing state of account. Jul 14, 2017 advances in information and communication technology ict amongst, have led to new challenges in all aspects of banking and especially so in the banker customer relationship. The general relationship between banker and customer is. Sometimes, the banker act as agent, trustee or others also. The relationship between a banker and his customer depends upon the nature of service provided by a banker.
The data analysis found that there is a significant relationship between the banker and customer relationship on using the technology enabled services offered by the banks in the sample area. Relationship between customer satisfaction and mobile banking. Banks business depends much on the strong bondage with the customer. Commercial banks render a great deal of services to their customers. Accepting deposits and lending andor investing are the core banking businesses of a bank. Bankers act as per the standing instructions of their customers. Implications of the information and communications technology. Start studying legal cases, bankercustomer relationship. General relationship between banker and customer the relationship between a banker and his customer is basically contractual. Implications of the information and communications. Oct 23, 2018 rights and duties of banker and customer. As the bankercustomer relationship can be established, so it can also be terminated. Relationship between customer satisfaction and mobile.
Therefore, the general relationship between a depositor and the banker is a relation of the debtor and the creditor. The moment the customer opens an account with the banker, he becomes debtor of the customer and the customer becomes his. Hart the banker is one who receives money, collects cheques and drafts, for customers, with an obligation to honour the cheques drawn by customers from time to time subject to availability of amounts in the account. The general legal relationship between bank and its customer. The relationship that arises between banker and customer, in conducting, various businesses involve certain obligations and rights on the banker as well as the customer. As such, the relationship existing between banker and customer cannot be exhausted. Other special relationship with the customer, obligations of a banker. When customer deposits money into his bank account, the bank becomes a debtor of the customer. Tounderstand more in customer relationship management, we first need to understand threecomponents which are customer, relationship and their management. Aug 21, 2014 the relationship between the banker and customer is, generally, like a commercial transaction. Banking means accepting deposits from public, for the purpose of lending, repayable on demand or otherwise with drawable by cheque, draft, order. Another aspect of the bankercustomer relationship is one of agent and principal when paying and collecting cheques, and bailment when accepting valuables for safekeeping in a safe deposit box. Which one of the following is the most important relationship between banker and customer a debtor and creditor b bailee and bailor.
The relationship between banker and customer are categorized into three. The relationship between a banker and a customer is the foundation on which mutual duties, liabilities and privileges are being built. Advances in information and communication technology ict amongst, have led to new challenges in all aspects of banking and especially so in the banker customer relationship. Also, duty of secrecy is another key obligation of banker to the customers in a banker customer relationship due to its confidentiality of this agreement. The banker and customer creates some obligations of banker and to fulfill those obligations it enjoys few rights. The relationship between the banker and customers creates some obligations on the part of a bank. The legal relationship between a bank and its customer differs in several important respects from the relationships between most other service providers. It arises between a banker and a customer with the opening of an account by the customer with a banker. The relationship between a banker and customer depends upon the type of service. The general legal relationship of bank and customer is contractual relationship, started from the date of opening an account.
It also consists of general and special contracts arising from the particular requirements of the banking business. As more than 50% of indians have bank accounts, it is very important for you to know the rights and duties of both bankers and customers. The general relationship between banker and a customer is that of a debtor and a creditor i. The relation of banker and customer begins as soon as the first cheque is paid in and accepted for collection and not merely the it is paid general relationship between banker and customer the relationship between a banker and his customer is basically contractual.
The statutory protection afforded to bankers in nigeria in paying cheques olamide benedicta abe abstract the article is divided into three parts. In this case, the customer becomes the pledger, and the bank becomes the pledgee. The customer can be a person, a company, a society or a legal entity. Impact of banker customer relationship on the effective. We provide all important questions and answers for all exams. It is very difficult to live without a bank account as it is required for many things. Best of all, they are entirely free to find, use and download, so there is no cost or stress at all. However, before committing himself, the banker will want to be satisfied that the person will be a suitable customer, either by personal introduction, by taking and following up references or making some form of enquiry see later. Sep 04, 2009 the relationship between a banker and a customer depends on the activities. This happens when customer pledges promises certain assets or security with the bank in order to get a loan. As a general rule, the terms and conditions on deposits cannot be varied unilaterally by either party.
The relationship between the bank and its customer is a contract of mandate, where the customer deposits money with a bank, a contract of loan to use arises. Relationship between banker and customer the general relationship between banker and customer is that of debtor and creditor. However, the relationship between the banker and customer is directly opposite when the bank lends money to its customer. The relationship between a banker and customer depends upon the type of service rendered by the banker. Jul 20, 2015 what is the legal relationship between the banker and his customer. Generally, there are many duties of a banker in a banker customer relationship. General awareness for ssc rrb psc exam combo pack6 ebooks by. An appraisal of the relationship between banker and customer. An appraisal of the legal relationship between a banker and its customer. Whenever an individual opens an account in a bank an obligation is automatically created on the banker towards its customer with certain rights and responsibilities.
Banker and customer relationship authorstream presentation. Relationship debtorcreditor when the customer avails a loan or an advance then his relationship with the banker undergoes a change to what it is when he is a deposit holder. Hart the banker is one who receives money, collects cheques and drafts, for customers, with an obligation to honour the cheques drawn by customers from time to time subject to availability of amounts. Also, duty of secrecy is another key obligation of banker to the customers in a bankercustomer relationship due to its confidentiality of this agreement. Depositor is the creditor and the banker is the debtor. Zohra saleem and kashif rashid 2011, relationship between customer satisfaction and mobile banking adoption in pakistan insisted that reduction of risk related transactions performed through. The relationship starts righ immediately on closure of the acc a. Free download pdf of banking law multiple choice questionsmcqs with answers as per exam pattern, to help you in day to day learning. Banker customer special relationship published on april 11, 2017. The bankercustomer relation the relationship between the b between them. An appraisal of the legal relationship between a banker and. Crm and knowledge management aredirected towards improving and continuously delivering good services to customers.
The primary relationship between a banker and customer is legal based on contract as per contract act, 1872. General legal relationship between bank and customer. In addition, the more the interaction with the banker, the level of awareness and the usage patterns are highly positive with. The relationship between customer and banker can be that of pledger and pledgee. The relationship between banker and customer terminates in the following grounds. On the opening of an account, the banker assumes the position of a debtor. Pdf 8 banker customer relationship krishnaveni reddy. Another aspect of the banker customer relationship is one of agent and principal when paying and collecting cheques, and bailment when accepting valuables for safekeeping in a safe deposit box. Banker and customer relationship definition according to sec 5c of the banking regulation act 1949, a banker is a person who undertakes business of banking. Banking law multiple choice questions mcqs and answers. Bank and customer relationship online practice test. Banker a banker is the one who gets into debts and creates debts h.