Define the Term Banker and Customer
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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