- Features of Bank
- Features of customer
- Types of the connection between banker and client
- Relationship as debtor and creditor
- Banker as a trustee
- Banker as an agent
- Special relationship with customer/obligation of a banker
The relationship between a banker and a client depends on the kind of group action.
In this banker and client relationships; each parties have some obligations and rights. The connection between banker and client isn’t solely that of a human and mortal. However, they additionally share different relationships.
The term banking could outline as acceptive of deposit of cash from the general public for the aim of disposal or investment of that cash that are due on demand or otherwise and with a draw by cheque, draft or order.
A person WHO contains a checking account in his name and for whom the banker undertakes to produce the facilities as a banker is taken into account to be a client.
Features of Bank
1. The definition of banking describes the subsequent options of banking.
- A financial organization should perform each of the essential functions.
- Accepting of deposit.
2. Disposal or investment the same: The phrase deposit of cash from the general public is important. The bankers settle for a deposit of cash and not of the rest. The planet public implies that a banker accepts a deposit from anyone WHO offers his/her cash from such purpose.
3. The definition additionally implies the time and created to withdraw the deposit. The deposit cash ought to be due to the investor on demand created by the letter or in keeping with the agreement reached between the 2 parties.
Features of customer
To represent a client the subsequent needs should be fulfilled;
1. The checking account is also savings, current or mounted deposit should be operated in his name by creating a necessary deposit of cash.
2. The dealing between the banker and client should be of the character of the banking business. The overall relationship between banker and customer:
Types of the connection between Banker and client
The relationship between banker and client are classified into three;
Relationship as human and mortal
On the gap of Associate in nursing account, the banker assumes the position of a human. An investor remains a mortal of his banker see you later as his account carries a credit balance.
The relationship with the client is reserved as before long because the client account is overdrawn. Banker becomes a mortal of the client WHO has taken a loan from the banker and continues in this capability fills the loan is repaid.
Banker as a Trustee
Ordinally a banker may be a human of his client within the report of the deposit created by the letter however in sure circumstances, he acts as trustee additionally.
A trustee hold holds cash or plus and performs sure functions for the good thing about another person referred to as the beneficiary.
Banker as Associate in nursing Agent
A banker acts as Associate in Nursing agent of his client and performs variety of agency functions for the conveniences of his client. For example, he buys or sells securities on behalf of his client, collects check/cheques on his behalf and makes payment of varied dues of his client.
Special relationship with customer/obligation of a banker
Through the first relationship between a banker and his client is that of a human and a mortal or the other way around, the special options of this relationship as a note higher than impose the subsequent extra obligations on the banker.
The obligation to honor the Check/Cheques
The deposit accepted by a banker is his liabilities due on demand or otherwise. The banker is so beneath a statutory obligation to honor his customer’s check/cheque within the usual course.
According to section thirty one of the negotiable instruments. Act 1881 the banker is absolute to honor his customer’s check/cheque provided by following conditions ar fulfilled:
• Availability of enough funds of the client.
• The correctness of the check/cheque.
• Proper presentation of the check/cheque.
• A cheap time for assortment.
• Proper drawing of the check/cheque.
The obligation to keep up the secrecy of the client accounts
The banker is Associate in nursing obligation to require the utmost care keep secrecy regarding the account of his client. By keeping secrecy is that the account books of the bank won’t be thrown hospitable the general public or government, officers if the subsequent cheap state of affairs doesn’t occur,
1. Discloser of knowledge needed by law.
2. Discloser allowable by bankers’ follow and wages. The follow and wages ar customary amongst bankers allow revelation of sure data and also the following circumstances.
- With specific or tacit consent of the client.
- Banker reference.
- Duty to the general public to disclose.
Thus, it’s vital to know the connection between a banker and a client since it helps USA to know the muse of the entire industry and what all rights and duties vests with each the parties. It additionally helps USA to collect the remedies offered just in case of breach of duties.