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