Banker-Customer Relationship
The human relationship betwixt banker together with client is mainly that of a debtor together with creditor. However, they besides portion other relationships.
Some of the of import relationships they portion are depicted below.
The banker-customer human relationship is that of a:
- Debtor together with Creditor,
- Pledger together with Pledgee,
- Licensor together with Licensee,
- Bailor together with Bailee,
- Hypothecator together with Hypothecatee,
- Trustee together with Beneficiary,
- Agent together with Principal,
- Advisor together with Client, and
- Other miscellaneous relationships.
Discussed below are of import banker-customer relationships.
1. Relationship of Debtor together with Creditor
When a client opens an work concern human relationship amongst a bank together with if the work concern human relationship has a credit balance, together with hence the human relationship is that of debtor (banker / bank) together with creditor (customer).
In illustration of savings / fixed deposit / electrical current work concern human relationship (with credit balance), the banker is the debtor, together with the client is the creditor. This is because the banker owes coin to the customer. The client has the correct to need dorsum his coin whenever he wants it from the banker, together with the banker must repay the residuum to the customer.
In illustration of loan / advance accounts, banker is the creditor, together with the client is the debtor because the client owes coin to the banker. The banker tin need the repayment of loan / advance on the due date, together with the client has to repay the debt.
A client remains a creditor until at that spot is credit residuum inwards his work concern human relationship amongst the banker. H5N1 client (creditor) does non larn whatever accuse over the assets of the banker (debtor). The customer's condition is that of an unsecured creditor of the banker.
The debtor-creditor human relationship of banker together with client differs from other commercial debts inwards the next ways:
- The creditor (the customer) must need payment. On his own, the debtor (banker) volition non repay the debt. However, inwards illustration of fixed deposits, the depository fiscal establishment must inform a client almost maturity.
- The creditor must need the payment at the correct fourth dimension together with place. The depositor or creditor must need the payment at the branch of the bank, where he has opened the account. However, today, to a greater extent than or less banks let payment at all their branches together with ATM centres. The depositor must need the payment at the correct fourth dimension (during the working hours) together with on the appointment of maturity inwards the illustration of fixed deposits. Today, banks besides let pre-mature withdrawals.
- The creditor must brand the need for payment inwards a proper manner. The need must last inwards shape of cheques; withdrawal slips, or pay order. Now-a-days, banks let e-banking, ATM, mobile-banking, etc.
2. Relationship of Pledger together with Pledgee
The human relationship betwixt client together with banker tin last that of Pledger together with Pledgee. This happens when client pledges (promises) for sure assets or safety amongst the depository fiscal establishment inwards club to larn a loan. In this case, the client becomes the Pledger, together with the depository fiscal establishment becomes the Pledgee. Under this agreement, the assets or safety volition rest amongst the depository fiscal establishment until a client repays the loan.
3. Relationship of Licensor together with Licensee
The human relationship betwixt banker together with client tin last that of a Licensor together with Licensee. This happens when the banker gives a sale deposit locker to the customer. So, the banker volition larn the Licensor, together with the client volition larn the Licensee.
4. Relationship of Bailor together with Bailee
The human relationship betwixt banker together with client tin last that of Bailor together with Bailee.
- Bailment is a contract for delivering goods past times 1 political party to to a greater extent than or less other to last held inwards trust for a specific flow together with returned when the purpose is ended.
- Bailor is the political party that delivers holding to another.
- Bailee is the political party to whom the holding is delivered.
So, when a client gives a sealed box to the depository fiscal establishment for rubber keeping, the client became the bailor, together with the depository fiscal establishment became the bailee.
5. Relationship of Hypothecator together with Hypothecatee
The human relationship betwixt client together with banker tin last that of Hypothecator together with Hypotheatee. This happens when the client hypothecates (pledges) for sure movable or non-movable holding or assets amongst the banker inwards club to larn a loan. In this case, the client became the Hypothecator, together with the Banker became the Hypothecatee.
6. Relationship of Trustee together with Beneficiary
A trustee holds holding for the beneficiary, together with the net turn a profit earned from this holding belongs to the beneficiary. If the client deposits securities or valuables amongst the banker for rubber custody, banker becomes a trustee of his customer. The client is the beneficiary hence the ownership remains amongst the customer.
7. Relationship of Agent together with Principal
The banker acts equally an agent of the client (principal) past times providing the next way services:
- Buying together with selling securities on his behalf,
- Collection of cheques, dividends, bills or promissory notes on his behalf, and
- Acting equally a trustee, attorney, executor, correspondent or representative of a customer.
Banker equally an agent performs many other functions such equally payment of insurance premium, electricity together with gas bills, treatment taxation problems, etc.
8. Relationship of Advisor together with Client
When a client invests inwards securities, the banker acts equally an advisor. The advice tin last given officially or unofficially. While giving advice the banker has to accept maximum help together with caution. Here, the banker is an Advisor, together with the client is a Client.
9. Other Relationships
Other miscellaneous banker-customer relationships are equally follows:
- Obligation to laurels cheques : As long equally at that spot is sufficient residuum inwards the work concern human relationship of the customer, the banker must laurels all his cheques. The cheques must last consummate together with inwards proper order. They must last presented inside half dozen months from the appointment of issue. However, the banker tin reject to laurels the cheques solely inwards for sure cases.
- Secrecy of customer's account : When a client opens an work concern human relationship inwards a bank, the banker must non give data almost the customer's work concern human relationship to others.
- Banker's correct to claim incidental charges : H5N1 banker has a correct to accuse a commission, involvement or other charges for the diverse services given past times him to the customer. For e.g. an overdraft facility.
- Law of limitation on depository fiscal establishment deposits : Under the police of limitation, generally, a client gives upwardly the correct to recover the amount due at a banker if he has non operated his work concern human relationship since final 10 years.
So, these were to a greater extent than or less of import banker-customer relationships.
