Banker and Customer Relationship
Banker Definition G. Crowther
“A banker is a dealer in debt of his own and other 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
Right and Duties of Customers
Rights of Customers
1. Right to encash a Cheque
It is the right of the customer that his cheque is to be encashed. He should be given the amount as per the balance.
2. Right to receive documents
It is the right of the customer to receive the pass book, cheque book, and statement of account from the bank.
3. Right to sue against wrongful dishonor
A customer has the right to sue a bank if the bank dishonors the cheque with out and positive reason.
4. Secrecy
It is the right of customer that bank can be kept his account secret and not disclos d to any one.
5. Right to interest
It is the right of customer to receive the interest and bank, is bound to pay, and depends upon the nature of account.
Duties of customer
1. Obey banking hours
A customer must present his cheque for encashment (payment) and collection with in banking hours and days.
2. Safe custody of cheque book
It is the duty of the customer to keep his cheque book safe. So that it may not be go into the hands of unauthorized person.
3. Presentation of cheque before expiry
It is the duty of the customer that he should present the cheque with in six month of its issue date. Otherwise no claim would be for payment.
4. Case of forged cheque
It is the duty of the customer that he must inform the bank believing that his signature is being forged on a cheque so that no payment should be made.
Right and duties of banker Right of banker
1. Right of interest and charges
The banker has the right to charge interest on loans. It also charges commission as for services provided. The services include collection of cheque, bills of exchange and dividends etc.
2. Right of lien
The bank has a lien on the goods and securities of the customer until he repays his dues. The bank can sell such items after giving proper notice.
3. Charge compound interest
The banker has right to charge compound interest on over drafts calculated o daily balance. There is agr ment between banker and customer about rate and time period.
4. Adjustment of balances
The banker has right to adjust debit balance against credit balance.
Duties of Banker
1. The honour the customer’s cheque
It is the duty of the banker to honour cheque issued by the customers. The cheque must be drawn properly and presented during working hours.
2. Secrecy of customers account
The bank should maintain the secrecy of the customer account if it is disclosed the customer may suffer loss.
3. Purchase and sale of securities
It is the duty of the bank to obey the instructions regarding the purchasing and selling of securities.
4. Opening of letter of credit (L/C)
It is one the duties of the bank to issue letter of credit for its customers in the international trade.
Why don’t we read According to statistics, about 30% of adults do not read at all. Almost half of the country’s population has not read a single book over the past year. The book circulation in 10 years has decreased by 4 times, and the circulation of periodicals (magazines, newspapers) in 5. These data are not encouraging. Is not it? Why did we stop reading?