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Wednesday, 12 September 2012

Write a note on the bankers and customers relation









Sir Jhon Paget throws light on the relations of the banker and customers in the following word, " The relationship of banker and customer is primarily that of a debtor and creditor, the respective position being determined by the existing state of the account. The banker is free to use and does not use the money, accepted far him. The customer has parted control over it, retaining only his right to repayment."

The relationship between banker and customer  have a special nature. Banker as a person or corporal who carries the business of the bank. The customer is a person who has some sort of account either current or fixed some similar relations with a banker.


DUTIES OF THE BANKER :-
Following are the important duties of the bankers :
 
1. To Honour Cheques :-
It is the duty of the banker to honour the cheques of the customers but
i. The cheques should be properly drawn.
ii. The customers has balances to his credit.
iii. The loan contract has been signed.
iiii. There is no legal prohibition in payment.
 
2. Secrecy Of Account :-
It is the duty of the bank that it should not disclose the customers financial position with out his permission.
 
3. Standing Orders :-
The bank abides by the standing orders of the customers in making payments on his behalf such as insurance premium.
 
4. Custodian Of Property :-
The bank takes care of the property deposited by the customers with or without charge. It is the oldest relation between the banker and customer.

 
BANKER'S RIGHTS :-
1. Right Of Charges :-
The bank has the right to charge the commission and interest on the services performed by him for the customers such as advancing of loans.
 
2. Bankers General Lien :-
The bank has the general lien to dispose of the share or title deed which is deposited with it with clear instructions for sale.
 
3. Incidental Charges :-
The banker has the right to charge the incidental charges.
 
4. Advice On Investment :-
If the customers need advice on investment, the banker without assuming any responsibility will offer advice to them.

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