Banking operation ( Tutorial ) (2).pptx

Therefore the bank should comply with the

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Therefore, the bank should comply with the instructions of the relevant authority such as a court. If a court finds that an individual has a mental disorder and unable to manage their affairs, the court may appoint a committee to manage the estate of the individual as the court deems necessary. It is very important to ensure that the court order grants the committee these power to manage the bank account of the individuals. 1. Discuss some of the reasons leading to termination of a banker-customer relationship.
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1. Discuss some of the reasons leading to termination of a banker-customer relationship. 4. Death of a customer The death of a customer terminates the authority given to the banker and therefore has the effect of terminating the relationship. A bank has the duty to honour the customers’ payment instructions and to permit operations on their accounts in accordance with the terms of the mandate that the bank holds the account. All instructions by a customer shall remain effective for the protection of the bank for payment made or instruction carried out in good faith in spite of death until written notice with documents evidencing such death is received by the bank. o On the death of a customer, the mandate may no longer be valid and the bank may no longer have any authority to pay items drawn on the account. However, this would not usually apply to a partnership, a limited liability partnership, a company, or a club association or a society. Types of customer account: Individual Joint Accout Sole proprietorship Partnership Companies and limited liability partnership Club, association or society
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2. Banks may derive information about customers’ financial circumstance from the products and services used by the customers. Identify these banking products and services and discuss the information these products and services may provide about customers circumstances. 1. Card payments Use of a credit or debit card to make payment for a sale of goods or services. Indicates on how a customer is spending their money.
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2. Standing orders and direct debit Standing order Initiated by a payer. It comes with paying a fixed amount at regular interval.
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  • Fall '16
  • Wang Ah Yong

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