1. UNIT -1 BANKER AND CUSTOMER
Ms.Ramya GR
Assistant Professor
Department of Management studies
Acharya Institute of Graduate studies
2. MEANING OF BANK
A bank is a financial institution that accepts deposits from the public and creates credit. Lending
activities can be performed either directly or indirectly through capital markets. Due to their importance
in the financial stability of a country, banks are highly regulated in most countries.
3. WHO IS A CUSTOMER IN BANK?
Any one holding account in a bank is called as Customer ;
A person whose money has been accepted by the banker on the footing that he undertakes to honor
cheque unto the amount standing to his credit is a customer of the bank irrespective of whether his
connection is short or long duration.
The word customer signifies a relationship in which duration is not of essence.
4. CHARACTERISTICS / FEATURES OF A BANK
Dealing in Money
Acceptance of Deposit
Giving Advances
Payment and Withdrawal
Agency and Utility Services
5. CONTD…….
Profit and Service Orientation
Ever increasing Functions
Connecting Link
Name Identity
6. TYPES OF RELATIONSHIP BETWEEN BANKER AND CUSTOMERS:
1.General Relationship:
2. Special Relationship:
7. GENERAL RELATIONSHIP BETWEEN BANKER AND CUSTOMER:
Debtor And Creditor Relationship:
Banker as a Bailee
Banker as a Trustee
Bank as an executor
Banker as an Attorney
Note : Power of Attorney refers to the authority to act for another person in legal or financial matters.
8. SPECIAL RELATIONSHIP BETWEEN BANKER AND CUSTOMER:
THE BANKER HOLDS SPECIAL RELATIONSHIP BY OBLIGING
1) the Banker To Honour Checks:
2) Banker to Maintain Confidentiality:
3) Banker To Maintain Records:
9. RIGHTS AND / OBLIGATIONS DUTIES OF BANKER AND CUSTOMER
Rights of a Banker
1. Right to charge interest
2. Right to levy commission and service charges
3. Right of Lien
4. The Right of Set-off
5. Right of Appropriation
6. Right to Close the Account
10. RIGHTS OF A CUSTOMER
1. Right to fair treatment
2. Right of transparent, fair and honest dealing
3. Right to suitability
4. Right to privacy
5. Right to grievance redressed and compensation
11. DUTIES / OBLIGATIONS OF CUSTOMERS TO BANKS
1. It is the duty of customers to present the cheque and other negotiable instruments only during the
business hours of the bank.
2. In the case of any disagreement in the bank statement, customers should inform the bank.
3. Whenever photographs or any documents of customers are required by the bank, it should be
submitted.
4. It is the duty of the customer to present the instrument of credit within the due time from the date
of issue.
5. The cheque should be filled by customers very carefully.
12. CONTD…..
6. If the cheque book is lost or stolen, it is the duty of the customers to inform the bank.
7. If the customer notices any forgery in the amount of the cheque, he/she should inform it to the bank
immediately.
8. Customers should provide proper information in the Know Your Customer (KYC) form.
9. Customers should make the repayment of all the dues on time.
10. It is the duty of the customers to read the MITC ( Most Important Terms and Conditions)
13. OBLIGATIONS / DUTIES OF BANKERS
1. It is the duty of the bank to honor the cheques of its customers up to the amount standing to the
credit of the customer’s account. The bank is liable to pay the compensation to the customer, if it
wrongfully refuses to honor the cheque.
2. It is the duty of the bank to follow the instructions given by the customers. If the customer has not
given any instructions, the bank should act as per rules and regulations.
3. Bankers should not disclose personal information given by customers to any outsider.
4. Banks should maintain all details of transactions made by the customer.
