Banking: LESSON 10 BANK CUSTOMER RELATIONSHIP: CONCEPT AND CASES
BANKER-CUSTOMER RELATIONSHIP BY ABDUL QADIR BHAMANI. There are two types of liens – General lien and particular lien. BANKER AND CUSTOMER RELATIONSHIP PRESENTED BY: RITESH customer. • A person of a specified kind with whom one has to deal. ces of different types given by the banks. There try play a anking business from any other kind of business.” ge: “The relation of banker and customer begin.
The bankers accept a deposit of money and not of anything else. The definition also implies the time and made to withdrawing of the deposit.
Banker customer relationship
The deposit money should be repayable to the depositor on demand made by the letter or according to the agreement reached between the two parties. Bank is an Agent, Trustee, Executor, Administrator for Customers Customer A person who has a bank account in his name and for whom the banker undertakes to provide the facilities as a banker is considered to be a customer.
To constitute a customer the following requirements must be fulfilled; The bank account may be savings, current or fixed deposit must be operated in his name by making a necessary deposit of money. The dealing between the banker and customer must be of the nature of banking business.Banker Customer Relationship for SBI clerk 2018
The general relationship between banker and customer: Types of the Relationship between Banker and Customer The relationship between banker and Customer are categorized into three; Relationship as debtor and creditor.
Banker as a trustee. A depositor remains a creditor of his banker so long as his account carries a credit balance. Relationship with the customer is reserved as soon as the customer account is overdrawn. Banker becomes a creditor of the customer who has taken a loan from the banker and continues in that capacity fills the loan is repaid. Banker as a Trustee Ordinally a banker is a debtor of his customer in the report of the deposit made by the letter but in certain circumstances, he acts as trustee also.
A trustee hold holds money or asset and performs certain functions for the benefit of some other person called the beneficiary. For example; If the customer deposits securities or other values with the banker for the safe custody, the letter acts as a trustee of his customer.
Banker as an Agent A banker acts as an agent of his customer and performs a number of agency functions for the conveniences of his customer.
For example, he buys or sells securities on behalf of his customer, collects cheques on his behalf and makes payment of various dues of his customer. Through the primary relationship between a banker and his customer is that of a debtor and a creditor or vice versa, the special features of this relationship as a note above impose the following additional obligations on the banker.
Different forms of Banker Customer Relationship in Banking
The obligation to honor the cheques The deposit accepted by a banker is his liabilities repayable on demand or otherwise.
The customer's status is that of an unsecured creditor of the banker. The debtor-creditor relationship of banker and customer differs from other commercial debts in the following ways: The creditor the customer must demand payment. On his own, the debtor banker will not repay the debt. However, in case of fixed deposits, the bank must inform a customer about maturity. The creditor must demand the payment at the right time and place.
The depositor or creditor must demand the payment at the branch of the bank, where he has opened the account. However, today, some banks allow payment at all their branches and ATM centres. The depositor must demand the payment at the right time during the working hours and on the date of maturity in the case of fixed deposits.
Today, banks also allow pre-mature withdrawals.
- Different forms of Banker Customer Relationship in Banking
- Banking & Insurance
- Relationship between Banker and Customer
The creditor must make the demand for payment in a proper manner. The demand must be in form of cheques; withdrawal slips, or pay order. Now-a-days, banks allow e-banking, ATM, mobile-banking, etc. Relationship of Pledger and Pledgee The relationship between customer and banker can be that of Pledger and Pledgee.
This happens when customer pledges promises certain assets or security with the bank in order to get a loan. In this case, the customer becomes the Pledger, and the bank becomes the Pledgee. Under this agreement, the assets or security will remain with the bank until a customer repays the loan.
Relationship of Licensor and Licensee The relationship between banker and customer can be that of a Licensor and Licensee.
This happens when the banker gives a sale deposit locker to the customer. So, the banker will become the Licensor, and the customer will become the Licensee. Relationship of Bailor and Bailee The relationship between banker and customer can be that of Bailor and Bailee.
Bailment is a contract for delivering goods by one party to another to be held in trust for a specific period and returned when the purpose is ended.
Bailor is the party that delivers property to another. Bailee is the party to whom the property is delivered. So, when a customer gives a sealed box to the bank for safe keeping, the customer became the bailor, and the bank became the bailee. Relationship of Hypothecator and Hypothecatee The relationship between customer and banker can be that of Hypothecator and Hypotheatee. This happens when the customer hypothecates pledges certain movable or non-movable property or assets with the banker in order to get a loan.
In this case, the customer became the Hypothecator, and the Banker became the Hypothecatee.