BANKER AND CUSTOMER RELATIONSHIPDEFINITION 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.
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
TYPES OF RELATIONSHIPBANKER AND CUSTOMER RELATIONSHIPI.GENERAL RELATIONSHIP II.SPECIAL RELATIONSHIPGENERAL RELATIONSHIP BETWEEN BANKER AND CUSTOMER1.PRIMARY RELATIONSHIP2.SECONDARY RELATIONSHIP
CONT..1.PRIMARY RELATIONSHIP a.DEBTOR AND CRDITOR RELATIONSHIPb.CREDITOR AND DEBTOR RELATIONSHIPDEBTOR AND CRDITOR RELATIONSHIPWhen 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.
Features of debtor and creditor Banker is called a dignified debtorCustomer is not the secured creditor of the bankCustomer’s balance at bank is not repayableBanker 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.
CREDITOR AND DEBTOR RELATIONSHIPb. CREDITOR AND DEBTOR RELATIONSHIPHere the banker acts as a creditor.