Banker – Customer Relationship

Banker – Customer Relationship

Relation	Bank	Customer
Deposit account	Debtor	Creditor
Banks lend a money to Customer	Creditor	Debtor
Safe custody of articles	Bailee	Bailor
Safe deposit locker	Lessor	Lessee
Remittances, Collection Of Cheques, bills etc on	Agent	Principal
behalf of the customers
Issue of duplicate draft, FD receipts	Indemnified	Indemnifier
	/ Indemnity
	Holder

Acceptance of deposits should be for the purpose of lending and investment. The deposit should be accepted from public

Acceptance of deposit should be in money.

Deposit repayable to depositors on demand or otherwise.

The deposits may be withdrawable by cheque, draft order or otherwise.

Obligation to Pay Cheques (34)

It is a statutory obligation of the banker, having sufficient funds of the drawer in

his hands properly applicable to the payment cheque duly presented.

Bank’s liability for wrongful dishonor of cheque

The above obligation to pay the cheques is not unconditional. The conditions under which banker may refuse payment of a cheque

Funds properly applicable

The cheque is not properly applicable

The cheque has become stale is post-dated.

The cheque is presented at a branch other than one where it is payable.

Cheque is crossed and is presented for cash payment.

Cheque is received after

Drawer signature differs

Amount of the cheque as stated in figures and words differs.

.

Bank’s Obligation to Maintain secrecy of Accounts

Disclosures permitted by Law and Practice

Precautions to be adopted while disclosing the Information.

Furnishing of o Opinion