Most, if not all of us, maintain bank accounts banker-customer relationship begins no sooner the customer opens an account and a banking service is transacted a remarkable feature of this relationship is its attendant legal rights and obligations on both sides it is of interest to note that the relationship between a banker and a. The relationship between a banker and a customer depends on the activities products or services provided by bank to its customers or availed by the customer thus the relationship between a banker and customer is the transactional relationship. The relationship between banker and customer can be that of a licensor and licensee this happens when the banker gives a sale deposit locker to the customer so, the banker will become the licensor, and the customer will become the licensee.
The relationship between a banker and a customer depends on the activities, products or services provided by the bank to its customers thus the relationship between a banker and its customers is a transactional relationship. A bank typically does not owe fiduciary duties to a depositor, as fiduciary relationships require something behind a debtor-creditor relationship there must be something approximating business agency, a professional relationship, or a family tie rhoads v harvey publications, 145 ariz. The relationship between a banker and a customer depends on the type of transaction products or services offered by bank to its customers the legal relationship between a bank and its customer differs in several important respects from the relationships between most other service providers.
The relationship between banker and customer the essential relationship between a banker and its customer is contractual, not fiduciary ( foley v hill (1848) 2 hl cas 28 hart v sangster  1 ch 329 at 337 encyclopaedia of banking law , para. Explain the legal relationship between bank and customer the banker/customer relationship the relationship between bank and customer arises from a legal contract between them these are the main types of relationship which may exist between bank and customer: receivable/payable relationship. 24 definition of a banker and a bank customer the law of banking is the law of the relationship between a banker and his customers in essence, the nigerian law of banking focuses on participants in the banking industry namely the banker and the customer.
Banker and customer realationship5 1 banker and customer relationship 2 banker and customer relationship the relationship between the banker and customer is. The relationship between a customer/non-customer and a banker is purely depend on the nature or the type of dealings between them following are the relationships that are commonly found between banks and customer. Banker and a customer relationship • the relationship between a banker and a customer depends on the type of transaction • these relationships confer certain rights and obligations both on the part of the banker and on the customer. The relationship arises between a banker and a customer with the opening of an account by the customer with a banker the application for opening an account is considered as a letter of agreement for establishing the banker-customer relationship. Difference between the banker and the customers commercial banks render a great deal of services to their customers the relationship between banker and a customer can be expressed under the following angles: i bankers and customers act as debtor and creditor when a customer deposits his surplus.
The relationship between a banker and a customer is that of debtor and creditor in respect of the money deposited with the banker by the customer this position becomes clearer when a customer asks for his money if the amount is not paid, the customer can sue the bank the. The relationship between a banker and a customer depends on the type of transaction thus the relationship is based on contract, and on certain terms and conditions these relationships confer certain rights and obligations both on the part of the banker and on the customer. Legal position as to who a banker is, who a customer is, the incidents of a banker customer relationship and the position of the law especially judicial decisions in the aspect of banker customer relationship. Banker's right to combine accounts : the banker has a right to combine several accounts kept by the customer at the same branch or different branches of the bank (garnet v mc kervan) the banker however, cannot combine the personal account of a customer with a joint account of a customer and some other person. In the bank-customer scenario, the creditor (customer) would have to go to the bank and demand for the money , the bank would not come to the customer and actively seeking to repay back the money as there is no liability to pay until a demand is made by the customer in the customer-supplier relationship, the debtor is being active to make the.
The primary relationship between a banker and customer is legal based on contract as per contract act, 1872 however, the most valued relationship for the banking business is the behavioral relationship. Relationship, banker’s duties to his customer, duties of the customer and proffered some solutions on how to create awareness about the nature of bank/customer relationship keywords: bank, customer, law of banking. The relationship between a banker and a customer is as follows: 1 contractual relationship: the contract takes place the moment an account is opened by a customer with a bank and this contract remains valid till the customer operates his account as per the terms and conditions agreed between them. The basic function of a banker is accepting of money from the public by way of deposits and deploying the same by means of loans and investments besides these functions, bankers render a variety.
Please watch: bfm | caiib | foreign exchange (forex market) | case study asked in caiib exam explained in hindi . Bank/customer relationship there are no statutory provisions in this area in our jurisdiction, there is generally no fiduciary relationship between bank and customer in the absence of these duties, the bank can put its own profit-making interests above the customers. The relationship between the banker and customer is, generally, like a 'commercial transaction' the relationship between a banker and a customer is the foundation on which mutual duties, liabilities and privileges are being built an understanding of these terms is essential.