BANKER – CUSTOMER
RELATIONSHIP
SUDHEENDRAN.M
ASST. PROFESSOR
SCMS - COCHIN
Who’s A
Customer?
Person /
Legal Entity -
Maintains an
A/c for Banking
Transactions
Situation :
Availing
Ancillary
Services?
Question : Closing of Undesirable A/c
Mr. A’s current a/c has become an undesirable a/c due to very unsatisfactory operation. He does not agree to close the a/c even after repeated requests. As an Asst. Manager in Federal Bank, You have:
A. A right to close the a/c once the cheque book issued gets exhausted.
B.No right to close the a/c without the consent of Mr. A
C. A right to close the a/c after giving notice
D. A right to close the a/c after giving public notice.
Type of
Transaction
Deposits Debtor & Creditor
OD/Loan/CC Dr. Bal. Creditor & Debtor
Cheque Collxn Agent & Principal
Standing Instrn Agent & Principal
Banker - Customer
Relationship
Purchase of DD/MT Agent & Principal
Safe Custody of Article Bailee & Bailor
Safe Deposit Locker Lessor & Lessee
Type of
Transaction
Banker - Customer
R’shp
DEBTOR & CREDITOR
Deposits from customersFree to use.
Demand of payment to be made by the
customer (Privileged Debtor?)
Customer (Creditor) doesn’t call for any
security from debtor (Bank).
Question : SB a/c Limitation Period?
In case a bank does not pay a
customer’s SB deposits, the latter can
bring action for recovery within :
A.12 yrs of dishonour
B. 12 yrs from the date of cheque
C. 3 yrs of date of demand.
D. None of these
CREDITOR & DEBTOR
Loans & Advances
- Customer (Borrower)
& Banker (Lender)
BANKER AS AN AGENT
Agent does any act as per instruction
from principal.
Collect Cheques/ Dafts /Dividend
Warrants/Pymt of Insurance Premia, etc
on behalf of the customer.
BANKER AS BAILEE
Gold Ornaments & Imp. Docs for Safe Custody.
Banker can’t use the articles
Return of Identical Items on Demand
No interest
Custodian & liable for any loss due to negligence
LESSOR & LESSEE
Safe Deposit Lockers
Bank (Lessor) & Customer (Lessee).
WHY?
Leases Out Space for Rent
Not Responsible for Loss due
to Non Negligence
Question : Relationship termination?
The banker – customer relationship does not
stand terminated upon:
A. Death of customer.
B. Lunacy of customer
C. Insolvency of customer
D. Arrest of the customer
E. Any of the above
Question : Relationship termination?
The banker – customer relationship comes to
an end when the customer is:
A. imprisoned for criminal offence.
B. imprisoned for civil offence.
C. arrested for criminal offence
D. b or c
E. NOA
THANK YOU
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