Banker-Customer Human Relationship Explained Inwards Detail

Banker-Customer Relationship

The human relationship betwixt banker as well as client is mainly that of a debtor as well as creditor. However, they too percentage other relationships.

Some of the of import relationships they percentage are depicted below.

The banker-customer human relationship is that of a:

1. Debtor as well as Creditor,
2. Pledger as well as Pledgee,
3. Licensor as well as Licensee,
4. Bailor as well as Bailee,
5. Hypothecator as well as Hypothecatee,
6. Trustee as well as Beneficiary,
7. Agent as well as Principal,
8. Advisor as well as Client, and
9. Other miscellaneous relationships.

Discussed below are of import banker-customer relationships.

1. Relationship of Debtor as well as Creditor

When a client opens an concern human relationship amongst a bank as well as if the concern human relationship has a credit balance, thus the human relationship is that of debtor (banker / bank) as well as creditor (customer).

In representative of savings / fixed deposit / electrical current concern human relationship (with credit balance), the banker is the debtor, as well as 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, as well as the banker must repay the ease to the customer.

In representative of loan / advance accounts, banker is the creditor, as well as the client is the debtor because the client owes coin to the banker. The banker tin dismiss need the repayment of loan / advance on the due date, as well as the client has to repay the debt.

A client remains a creditor until at that spot is credit ease inwards his 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 as well as client differs from other commercial debts inwards the next ways:

1. The creditor (the customer) must need payment. On his own, the debtor (banker) volition non repay the debt. However, inwards representative of fixed deposits, the banking concern must inform a client most maturity.
2. The creditor must need the payment at the correct fourth dimension as well as place. The depositor or creditor must need the payment at the branch of the bank, where he has opened the account. However, today, around banks let payment at all their branches as well as ATM centres. The depositor must need the payment at the correct fourth dimension (during the working hours) as well as on the appointment of maturity inwards the representative of fixed deposits. Today, banks too let pre-mature withdrawals.
3. The creditor must brand the need for payment inwards a proper manner. The need must live on inwards shape of cheques; withdrawal slips, or pay order. Now-a-days, banks let e-banking, ATM, mobile-banking, etc.

2. Relationship of Pledger as well as Pledgee

The human relationship betwixt client as well as banker tin dismiss live on that of Pledger as well as Pledgee. This happens when client pledges (promises) for certain assets or safety amongst the banking concern inwards social club to larn a loan. In this case, the client becomes the Pledger, as well as the banking concern becomes the Pledgee. Under this agreement, the assets or safety volition stay amongst the banking concern until a client repays the loan.

3. Relationship of Licensor as well as Licensee

The human relationship betwixt banker as well as client tin dismiss live on that of a Licensor as well as Licensee. This happens when the banker gives a sale deposit locker to the customer. So, the banker volition cash inwards one's chips the Licensor, as well as the client volition cash inwards one's chips the Licensee.

4. Relationship of Bailor as well as Bailee

The human relationship betwixt banker as well as client tin dismiss live on that of Bailor as well as Bailee.

1. Bailment is a contract for delivering goods yesteryear i political party to around other to live on held inwards trust for a specific menstruation as well as returned when the purpose is ended.
2. Bailor is the political party that delivers belongings to another.
3. Bailee is the political party to whom the belongings is delivered.

So, when a client gives a sealed box to the banking concern for prophylactic keeping, the client became the bailor, as well as the banking concern became the bailee.

5. Relationship of Hypothecator as well as Hypothecatee

The human relationship betwixt client as well as banker tin dismiss live on that of Hypothecator as well as Hypotheatee. This happens when the client hypothecates (pledges) for certain movable or non-movable belongings or assets amongst the banker inwards social club to larn a loan. In this case, the client became the Hypothecator, as well as the Banker became the Hypothecatee.

6. Relationship of Trustee as well as Beneficiary

A trustee holds belongings for the beneficiary, as well as the earnings earned from this belongings belongs to the beneficiary. If the client deposits securities or valuables amongst the banker for prophylactic custody, banker becomes a trustee of his customer. The client is the beneficiary thus the ownership remains amongst the customer.

7. Relationship of Agent as well as Principal

The banker acts every bit an agent of the client (principal) yesteryear providing the next means services:

• Buying as well as selling securities on his behalf,
• Collection of cheques, dividends, bills or promissory notes on his behalf, and
• Acting every bit a trustee, attorney, executor, correspondent or representative of a customer.

Banker every bit an agent performs many other functions such every bit payment of insurance premium, electricity as well as gas bills, treatment taxation problems, etc.

8. Relationship of Advisor as well as Client

When a client invests inwards securities, the banker acts every bit an advisor. The advice tin dismiss live on given officially or unofficially. While giving advice the banker has to receive got maximum assist as well as caution. Here, the banker is an Advisor, as well as the client is a Client.

9. Other Relationships

Other miscellaneous banker-customer relationships are every bit follows:

• Obligation to accolade cheques : As long every bit at that spot is sufficient ease inwards the concern human relationship of the customer, the banker must accolade all his cheques. The cheques must live on consummate as well as inwards proper order. They must live on presented inside half dozen months from the appointment of issue. However, the banker tin dismiss turn down to accolade the cheques alone inwards for certain cases.
• Secrecy of customer's account : When a client opens an concern human relationship inwards a bank, the banker must non give data most the customer's 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 yesteryear him to the customer. For e.g. an overdraft facility.
• Law of limitation on banking concern deposits : Under the police push clit of limitation, generally, a client gives upwards the correct to recover the amount due at a banker if he has non operated his concern human relationship since concluding 10 years.

So, these were around of import banker-customer relationships.