Term Banker and Customer

 

Banker Definition G. Crowther

 

“A banker is a dealer peoples”

 

 

J.W.Gilbert

 

“A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another”

 

Customer Definition By dr. hart

 

“A customer is one who has an account with the banker or for whom a banker habitually underrates to act as such”

 

 

By Justice Lindley

 

“Customer is a person who has some sort of account either deposit or current account or some similar relation with a banker”

 

The customer must be…..

He should not be a minor

He should be person of sound mind

He should not have been debarred from entering into any contract under the law

 

 

Relationship

General Relationship

 

 

Debtor and creditor

 

“The basic relationship is that of debt r and creditor. If a customer deposits money in the bank he is the creditor and the bank is debtor. If the customer has an overdraft balance then he is the debtor and bank is the creditor”

 

 

 

Special Relationship Principal

The customer is the principal when deposits cheque, drafts, dividends for collection with bank. The bank is an agent when he sells or purchases securities and installment of loans etc.

 

Bailer and Bailee

 

When a customer hands over his valuable to the bank for safe custody then the customer becomes the bailer and the bank is the bailee. And charges small amount for services rendered

 

Pledger and Pledgee

 

When the customer pledges moveable properly with the banker as security for loans, he becomes pledger and banker as pledge. This relationship also knows as pawner and Pawnee. The pledged good should be returned after the debt is repaid by customer.

 

 

Mortgagor and mortgagee

 

When the loan is taken against immovable property the customer is called mortgager and the banker is mortgagee.

 

 

Banker is a trustee and Executor

 

The banker receives valuable and documents of he customer and keeps them in safe custody. The banker also executes the standing instructions of its customers so banker becomes as trustee and executor.

 

Consultant

 

 

Bank usually undertakes financial consultancy for their client. In such a situation the bank becomes a consultant. When a bank advises his client on any important financial matter, bank b comes advisor and client becomes advisee.

 

Guarantor and principal debtor

 

Guarantor is the person who gives the guarantee. Principal debtor is the person for whom the guarantee is given. Today’s banking business giving of guarantee is an ordinary job of a bank when a bank gives guarantee, it becomes guarantor and client becomes principal debtors.

 

Financer and Financee

 

When the banker provide loan to his customer he become financer and customer becomes financee.

 

 

Indemnifier and indemnity holder

 

Indemnity is a contract when one party promises to save the other party form the loss caused to him by the conduct of the promisor himself or by the conduct of any other person the person who promises to make good the loss is called indemnifier and promise is called indemnity holder. So the bank makes a contract of indemnity with the client, bank becomes indemnifier and client becomes indemnity holder.

 

Reference and Referee

 

When a bank informs the state bank or any other authority about the financial status of a client, bank is called referee and client becomes reference

 

 

Termination of the Relationship

 

The relationship between customer and bank is terminated in following conditions

Termination by customer

The rate of interest is not acceptable to him

Bank does not give him facility as offered by other Not satisfied with the services

His confidence in the bank is shakened due to change of customer death

He change his place of residence

 

 

Termination by Banker

 

If the customer does not obey the banking hours.

Intimation of death of customer Due to insanity of customer

Due to insolvency of the customer Due to court order

Character is not satisfactory

 

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