The relationship between banker and customer are categorized into three. 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 statutory protection afforded to bankers in nigeria in paying cheques olamide benedicta abe abstract the article is divided into three parts. 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. Generally, there are many duties of a banker in a bankercustomer relationship. Banking means accepting deposits from public, for the purpose of lending, repayable on demand or otherwise with drawable by. 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. Bank and customer relationship online practice test. Banker customer relationship,is just a special contract where a person entrusts valuable items with another person with an intention that such items shall be retrieved on demand from the keeper by.
Therefore, the general relationship between a depositor and the banker is a relation of the debtor and the creditor. General relationship between the banker and customer. Banker a banker is the one who gets into debts and creates debts h. The legal relationship between a bank and its customer differs in several important respects from the relationships between most other service providers. The relationship between a banker and a customer depends on the type of transaction. Banker a banker is the one who gets into debts and creates debts. The general relationship between banker and customer. The general relationship between banker and customer is that of debtors and creditors according to the state of the customers account i. Pdf the bank and customer relationship, combination of. The fundamental obligations of a banker towards its customers are as follows. 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. Banker customer relationship in detail pdf download. General legal relationship between bank and customer. For these services, the banker charges a nominal commission from the customer. The general legal relationship between bank and its customer. Firstly, it is the duty of banker to honor the cheques issued by customers. It also consists of general and special contracts arising from the particular requirements of the banking business. An appraisal of the legal relationship between a banker and.
Chapter 4 banker and customer relationship shodhganga. Different types of bankers customer relationship exits in banking system. Crm and knowledge management aredirected towards improving and continuously delivering good services to customers. 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. These responsibilities are known as the special features of relationship between a banker and a customer. Start studying legal cases, bankercustomer relationship. Banker and customer relationship authorstream presentation. The relationship between banker and customer is not only that of a debtor and creditor. Jul 20, 2015 what is the legal relationship between the banker and his customer. Commercial banks render a great deal of services to their customers. As a general rule, the terms and conditions on deposits cannot be varied unilaterally by either party.
The banker customer relation the relationship between the b between them. The general relationship between banker and a customer is that of a debtor and a creditor i. 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. General relationship between banker and customer the relationship between a banker and his customer is basically contractual. Banker customer relationship free download as powerpoint presentation. When customer deposits money into his bank account, the bank becomes a debtor of the customer. The primary relationship between a banker and customer is legal based on contract as per contract act, 1872. Which one of the following is the most important relationship between banker and customer a debtor and creditor b bailee and bailor. Accepting deposits and lending andor investing are the core banking businesses of a bank. 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. The relationship between the banker and customer is, generally, like a commercial transaction. In this case, the customer becomes the pledger, and the bank becomes the pledgee.
On the opening of an account, the banker assumes the position of a debtor. 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. Relationship between banker and customer the general relationship between banker and customer is that of debtor and creditor. Impact of banker customer relationship on the effective. Implications of the information and communications technology. Concept of banker and customer relationship banking school.
Bankers journal, february 2010, the banking law in theory and practice. 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 relationship between the banker and customers creates some obligations on the part of a bank. Best of all, they are entirely free to find, use and download, so there is no cost or stress at all. The bankercustomer relation the relationship between the b between them. Learn vocabulary, terms, and more with flashcards, games, and other study tools. An appraisal of the legal relationship between a banker. Relationship between customer satisfaction and mobile. 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. 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 cheque, draft, order.
Generally, there are many duties of a banker in a banker customer relationship. 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. Or the relation between a banker and a customer is that of a debtor and a creditor. The relationship between a banker and customer depends upon the type of service rendered by the banker. Other special relationship with the customer, obligations of a banker. It arises between a banker and a customer with the opening of an account by the customer with a banker.
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. However, the relationship between the banker and customer is directly opposite when the bank lends money to its customer. The depositors are creditors and the bank is the debtor. When the banker agrees to open the account, he is legally accepting the offer and thus a binding contract is created.
It is very difficult to live without a bank account as it is required for many things. Banks business depends much on the strong bondage with the customer. The relationship between a banker and a customer is the foundation on which mutual duties, liabilities and privileges are being built. The relationship between a banker and customer depends upon the type of service. The general relationship between banker and customer is. Implications of the information and communications. The first part of this article seeks to explain and shed more light on banker customer relationship, the legal position as to. Depositor is the lender and the banker is the borrower. Sometimes, the banker act as agent, trustee or others also. An appraisal of the relationship between banker and customer. 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. Banker and customer general relationship mortgage law. 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.
As such, the relationship existing between banker and customer cannot be exhausted. The customer can be a person, a company, a society or a legal entity. The relationship between a banker and his customer depends upon the nature of service provided by a banker. The relationship between a banker and a customer depends on the activities. The dealing between the banker and customer must be of the nature of the banking business. Aug 21, 2014 the relationship between the banker and customer is, generally, like a commercial transaction. 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. Oct 23, 2018 rights and duties of banker and customer. The banker and customer creates some obligations of banker and to fulfill those obligations it enjoys few rights. The terms and conditions governing the relationship are not leaked by the banker to any third party. Banking law multiple choice questions mcqs and answers. Milnes holden t, banking law and practice in india, the researcher follow the book to know about the banker and customer relationship in india. As the bankercustomer relationship can be established, so it can also be terminated.
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 relationship subsisting between banker and customer is basically contractual and fundamentally that of debtor and creditor. 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. So, the relationship terminates if the account is closed for any reason.
Bankers act as per the standing instructions of their customers. Banker customer special relationship published on april 11, 2017. Banking law the relationship between banker and customer. Tounderstand more in customer relationship management, we first need to understand threecomponents which are customer, relationship and their management. Thus the relationship between a banker and customer is the transactional relationship. Free download pdf of banking law multiple choice questionsmcqs with answers as per exam pattern, to help you in day to day learning.
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 banker and customer governmentadda. 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. General awareness for ssc rrb psc exam combo pack6 ebooks by. General relationship creditordebtor relationship between the customer having a deposit account and the banker. 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. We provide all important questions and answers for all exams.
The moment the customer opens an account with the banker, he becomes debtor of the customer and the customer becomes his. The relationship between customer and banker can be that of pledger and pledgee. The relationship between banker and customer falls under two broad categories viz. 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. This happens when customer pledges promises certain assets or security with the bank in order to get a loan. An appraisal of the relationship between banker and. Depositor is the creditor and the banker is the debtor. 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.
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. Pdf 8 banker customer relationship krishnaveni reddy. Relationship between customer satisfaction and mobile banking. Sep 04, 2009 the relationship between a banker and a customer depends on the activities. Also, duty of secrecy is another key obligation of banker to the customers in a bankercustomer relationship due to its confidentiality of this agreement. The general legal relationship of bank and customer is contractual relationship, started from the date of opening an account. The relationship between banker and customer terminates in the following grounds. In addition, the more the interaction with the banker, the level of awareness and the usage patterns are highly positive with.