Obligation of a banker B Rights of a banker Banker as certain obligation to be

Obligation of a banker b rights of a banker banker as

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Obligation of a banker B. Rights of a banker
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Banker as certain obligation to be fulfilled towards the customer 1. Obligation to honour the customers cheque 2. Obligation to maintain secrecy of customer’s Account 3. Obligation to give reasonable notice before closing the customer’s accounts. 4. Obligation of Banker to Maintain Proper Records: The banker is under an obligation to maintain accurate record of all the transactions(credits and debits) of the customers made with the bank. 5. Obligation of Banker to Follow Customer’s Instructions: The banker is under a legal obligation to follow the instructions of the customer. This is so because there is the contractual relationship between the bank and the customer.
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OBLIGATIONS OF THE BANK 1. Obligation to honour the cheque: Under section 31 of NI Act 1881, the banker is obliged to make payment of the cheque ,with mandate, properly presented, provided there is balance in the account. However, when a garneshee order is served on the banker, the banker may seek refuse under order 21 of code of civil procedure 1908 and the banker may not pay the cheque when such order is served. If a debtor fails to pay the debt to the creditor, the latter may approach a court of law to issue a garneshee order on the banker of his debtor.
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Banker Obligation to honour the customers cheque: The bank has the obligation to honour customer’s cheque as and when they are presented. A banker must honour the customer’s cheque drawn on him provided a. Sufficient funds b. Correctness of the cheque c. Proper drawing of the cheque d. Proper presentation e. Reasonable time for collection
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A cheque is said to be dishonoured when the payment is not made. Circumstance for dishonour of cheque are : 1. Insufficiency of funds 2. Notice of the customer’s death 3. Notice of the customer’s Insolvency 4. Trust accounts 5. Suspicion about the title over the cheque 6. Presentation of a post-dated cheque 7. Joint account 8. Material alterations 9. Drawer’s signature 10. Proper form of the cheque 11. Drawn on another branch
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A cheque may be dishonoured by a banker by mistake or by negligence on the part of any of the employees, even though there is sufficient balance and cheque has been drawn in a proper manner. The banker will be held responsible for the wrongful dishonour of a cheque because of loss or damage to the customer.
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OBLIGATIONS OF THE BANK 2. Obligation to maintain secrecy: Section 13 of Banking Companies Act 1970 stipulates the banks to maintain secrecy of their customers' accounts and dealings with them. This obligation of the Bank to maintain secrecy continues even after the customer’s account is closed . If the banker makes an unwarranted disclosure of the status of account of the bank’s customer, the banker becomes liable to compensate the customer .
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OBLIGATIONS OF THE BANK However there are exceptions. The exceptions are : When law requires.
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