2.-BANKER-AND-CUSTOMER-RELATIONSHIP.pdf - BANKER AND CUSTOMER RELATIONSHIP BANKER AND CUSTOMER RELATIONSHIP DEFINITION According to sec 5(c of the

2.-BANKER-AND-CUSTOMER-RELATIONSHIP.pdf - BANKER AND...

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BANKER AND CUSTOMER RELATIONSHIP
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BANKER AND CUSTOMER RELATIONSHIP DEFINITION According to sec 5(c) of the Banking Regulation Act 1949, a banker is a person who undertakes business of banking. Banking means accepting deposits from public, for the purpose of lending, repayable on demand or otherwise with drawable by cheque, draft, order.
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Meaning of customer A customer means a person who seeks to open account which banker accepts with proper introduction. The relationship is not based on frequency of transactions, and durations. Features of bank or banker Receiving money and collecting drafts. The obligation of honouring cheques drawn upon them, making payments across the counter on demand. The main line of activity of the organisation should be banking
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TYPES OF RELATIONSHIP BANKER AND CUSTOMER RELATIONSHIP I. GENERAL RELATIONSHIP II. SPECIAL RELATIONSHIP GENERAL RELATIONSHIP BETWEEN BANKER AND CUSTOMER 1. PRIMARY RELATIONSHIP 2. SECONDARY RELATIONSHIP
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CONT.. 1. PRIMARY RELATIONSHIP a. DEBTOR AND CRDITOR RELATIONSHIP b. CREDITOR AND DEBTOR RELATIONSHIP DEBTOR AND CRDITOR RELATIONSHIP When banker accepts deposits from the customer he becomes the debtor and the customer is the creditor. The only obligation is to return the amount deposited with interest on demand. The banker can deal with the money anyway he likes.
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Features of debtor and creditor Banker is called a dignified debtor Customer is not the secured creditor of the bank Customer’s balance at bank is not repayable Banker should pay the deposit money on demand by the customer. The deposit should be paid at the appropriate place. The demand should be made by the customer on working days and during the business hours.
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CREDITOR AND DEBTOR RELATIONSHIP b. CREDITOR AND DEBTOR RELATIONSHIP Here the banker acts as a creditor.
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