Banker-Customer Human Relationship Explained Inward Detail

Banker-Customer Relationship

The human relationship betwixt banker too client is mainly that of a debtor too creditor. However, they every bit good part other relationships.

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

The banker-customer human relationship is that of a:

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

Discussed below are of import banker-customer relationships.

1. Relationship of Debtor too Creditor

When a client opens an occupation concern human relationship amongst a blogspot.com//search?q=what-is-bank-introduction-definition">bank too if the occupation concern human relationship has a credit balance, too then the human relationship is that of debtor (banker / bank) too creditor (customer).

In instance of savings / fixed deposit / electrical current occupation concern human relationship (with credit balance), the banker is the debtor, too 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, too the banker must repay the residual to the customer.

In instance of loan / advance accounts, banker is the creditor, too 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, too the client has to repay the debt.

A client remains a creditor until at that topographic point is credit residual inward his occupation concern human relationship amongst the banker. Influenza A virus subtype 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 too client differs from other commercial debts inward the next ways:

1. The creditor (the customer) must need payment. On his own, the debtor (banker) volition non repay the debt. However, inward instance of fixed deposits, the banking concern must inform a client close maturity.
2. The creditor must need the payment at the correct fourth dimension too 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 permit payment at all their branches too ATM centres. The depositor must need the payment at the correct fourth dimension (during the working hours) too on the appointment of maturity inward the instance of fixed deposits. Today, banks every bit good permit pre-mature withdrawals.
3. The creditor must brand the need for payment inward a proper manner. The need must hold upwards inward shape of cheques; withdrawal slips, or pay order. Now-a-days, banks permit e-banking, ATM, mobile-banking, etc.

2. Relationship of Pledger too Pledgee

The human relationship betwixt client too banker tin hold upwards that of Pledger too Pledgee. This happens when client pledges (promises) sure as shooting assets or safety amongst the banking concern inward club to larn a loan. In this case, the client becomes the Pledger, too 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 too Licensee

The human relationship betwixt banker too client tin hold upwards that of a Licensor too Licensee. This happens when the banker gives a sale deposit locker to the customer. So, the banker volition snuff it the Licensor, too the client volition snuff it the Licensee.

4. Relationship of Bailor too Bailee

The human relationship betwixt banker too client tin hold upwards that of Bailor too Bailee.

1. Bailment is a contract for delivering goods past times 1 political party to around other to hold upwards held inward trust for a specific menstruum too returned when the purpose is ended.
2. Bailor is the political party that delivers holding to another.
3. Bailee is the political party to whom the holding is delivered.

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

5. Relationship of Hypothecator too Hypothecatee

The human relationship betwixt client too banker tin hold upwards that of Hypothecator too Hypotheatee. This happens when the client hypothecates (pledges) sure as shooting movable or non-movable holding or assets amongst the banker inward club to larn a loan. In this case, the client became the Hypothecator, too the Banker became the Hypothecatee.

6. Relationship of Trustee too Beneficiary

A trustee holds holding for the beneficiary, too the profits earned from this holding 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 hence the ownership remains amongst the customer.

7. Relationship of Agent too Principal

The banker acts every bit an agent of the client (principal) past times providing the next way services:

• Buying too 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 too gas bills, treatment taxation problems, etc.

8. Relationship of Advisor too Client

When a client invests inward securities, the banker acts every bit an advisor. The advice tin hold upwards given officially or unofficially. While giving advice the banker has to accept maximum assist too caution. Here, the banker is an Advisor, too the client is a Client.

9. Other Relationships

Other miscellaneous banker-customer relationships are every bit follows:

• Obligation to respect cheques : As long every bit at that topographic point is sufficient residual inward the occupation concern human relationship of the customer, the banker must respect all his cheques. The cheques must hold upwards consummate too inward proper order. They must hold upwards presented inside half dozen months from the appointment of issue. However, the banker tin spend upwards to respect the cheques entirely inward sure as shooting cases.
• Secrecy of customer's account : When a client opens an occupation concern human relationship inward a bank, the banker must non give data close the customer's occupation concern human relationship to others.
• Banker's correct to claim incidental charges : Influenza A virus subtype 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 banking concern deposits : Under the constabulary of limitation, generally, a client gives upwards the correct to recover the amount due at a banker if he has non operated his occupation concern human relationship since final 10 years.

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