Banking law multiple choice questions mcqs and answers. This contract is cr and its customer is a loan contrac owes him that money and vice v between banker and customer is act, 1881 and the contract act, vital. A bank is a place for customers to keep their properties especially cash in order to secure the safety of the properties, hence it is the responsibility of bank to ensure the security of these properties. Like debtorcreditor, agentprincipal, licensorlessorlicensee. The relationship between bank and customer is based on simple contract. Different forms of banker customer relationship in banking. Free download pdf of banking law multiple choice questionsmcqs with answers as per exam pattern, to help you in day to day learning. Banker customer relationship,is just a special contract where a person entrusts valuable items with another person with an intention that such items shall be retrieved on demand from the keeper by. These relationships confer certain rights and obligations both on. The relationship between banker and customer is not only that of a debtor and creditor. So obviously in banking exams and interviews you surely will get atleast one question from this area. Meaning of a banker a banker is a dealer in capital or more properly a dealer in money.
General relationship between the banker and customer. Banker customer special relationship published on april 11, 2017. Legal relationship between banker and customer use of negotiable instruments is fraught with the risk of loss allocation of risk who is to suffer for the default of a third party. So here is the pdf file of shortnotes on customer banker relationship. Learn vocabulary, terms, and more with flashcards, games, and other study tools. This chapter discusses the relationship between a bank and its customer. In this paper we dealt with the meaning of bank or banker and customer, the nature of bankcustomer relationship, bankers duties to his customer, duties of the customer and proffered some solutions on how to create awareness about the nature of bankcustomer.
An appraisal of the relationship between banker and. The bankercustomer relationship is essentially a contractual one. However, before committing himself, the banker will want to be satisfied that the person. Also, duty of secrecy is another key obligation of.
In actual fact and in law the relationship is more complex. The bank and customer relationship, combination of accounts and setoff article pdf available november 2016 with 4,335 reads how we measure reads. T he opening of an account with a banker, and the bankers acceptance for such opening of account gives rise to a contractual relationship. There are various forms of banker customer relationship depending upon the services availed by the customer from bank.
Whenever an individual opens an account in a bank an obligation is automatically created on the banker towards. This contract is cr and its customer is a loan contrac owes him that money and vice v between banker and customer is act, 1881. The bills of exchange act 1882 defines a banker to include a body of persons whether incorporated or not who carry on the business. The special position held by banks and the size of their activities makes it essential to study the bankercustomer relationship under english law.
Best of all, they are entirely free to find, use and download, so there is no cost or stress at all. This means that when a bank or other type of adi accepts money. The customer is principal and the banker is the agent. The relationship starts righ immediately on closure of the acc. The definition of the business of banking and a large number of activities permissible for banks are given in the banking regulation act. Banker and a customer relationship the relationship between a banker and a customer depends on the type of transaction. In a bankercustomer relationship, one of the roles of banker is to act as the trustee for customers. Customer relationship management and its potential to help them acquire new customers retain existing ones and maximizetheir lifetime value.
Bankercustomer relationship is a contractual relationship between two parties and it may be terminated by. The general relationship between banker and customer. Concept of banker and customer relationship banking school. Firstly, it is the duty of banker to honor the cheques issued by customers. Explain the relationships of debtorcreditor and principalagent. Pdf the bank and customer relationship, combination of. In order to achieve the above aim, the study has four main objectives. Banking means accepting deposits from public, for the purpose of lending, repayable on demand or otherwise with drawable by cheque, draft, order.
Banker and customer relationship definition according to sec 5c of the banking regulation act 1949, a banker is a person who undertakes business of banking. This paper will aim to ascertain the legal nature of the. Generally, there are many duties of a banker in a bankercustomer relationship. Relationship between a banker and customer comes into existence when the banker agrees to open an account in the name of customer. Banking sector is a customeroriented servicewhere the. It is traditionally expressed as a debtor creditor relationship.
Advances in information and communication technology ict amongst, have led to new challenges in all aspects of banking and especially so in the banker customer relationship. Banker customer relationship is guided by different related laws and act. The data analysis found that there is a significant relationship between the banker and customer relationship on using the technology enabled services offered by the banks in the sample area. Pdf 8 banker customer relationship krishnaveni reddy. The aim of the study is to evaluate critically the status of customer relationship management in indian banking sector. The customer can be a person, a company, a society or a legal entity. The relationship between a banker and a customer depends on the type of transaction.
What is the legal nature of the bankercustomer relationship. Customer relationship management in indian banking sector. Different types of bankers customer relationship exits in banking system. As a future banker you should know the customer needs and what they expect them from a banker.
The bankercustomer relation the relationship between the b between them. In the light of a massive erosion of the principle of confidentiality. The banker customer relation the relationship between the b between them. Explain the relationships of bailorbailee and mortgagormortgagee. So the relationship between banker and customer is very important. An appraisal of the relationship between banker and customer in nigeria kabiru garba muhammad lecturer, faculty of law, usmanu danfodiyo university, sokoto nigeria abstract the relationship. Experience of individual voluntary arrangements introduction the relationship between a banker and a customer has its foundations.
Implications of the information and communications. Impact of banker customer relationship on the effective. When the banker agrees to open the account, he is legally accepting the offer and thus a binding contract is created. The fiduciary relationship between a bank and customers. Start studying legal cases, bankercustomer relationship. Banker customer relationship in detail pdf download. The relationship of banker and customer begins as soon as money or cheque is paid in and the bank accepts it and is prepared to. The legal relationship between a customer and the bank is based on contract and is generally classified as a debtorcreditor relationship. Legal rights and obligations on the basis of establishment of legal relationship, between banker and customer, both.
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