1. BANKER – CUSTOMER
RELATIONSHIP
SUDHEENDRAN.M
ASST. PROFESSOR
SCMS - COCHIN

2. Person /
Legal Entity -
Maintains an Who’s A
A/c for Banking
Customer?
Transactions
Situation :
Availing
Ancillary
Services?

3. Question : Closing of Undesirable A/c
 Mr. A’s current a/c has become an undesirable
a/c due to very unsatisfactory operation. He
does not agree to close the a/c even after
repeated requests. As an Asst. Manager in
Federal Bank, You have:
 A. A right to close the a/c once the cheque book
issued gets exhausted.
 B.No right to close the a/c without the consent of
Mr. A
 C. A right to close the a/c after giving notice
 D. A right to close the a/c after giving public notice.

4. Type of Banker - Customer
Transaction Relationship
 Deposits Debtor & Creditor
 OD/Loan/CC Dr. Bal. Creditor & Debtor
 Cheque Collxn Agent & Principal
 Standing Instrn Agent & Principal

5. Type of Banker - Customer
Transaction R’shp
Purchase of DD/MT Agent & Principal
Safe Custody of Article Bailee & Bailor
Safe Deposit Locker Lessor & Lessee

6. DEBTOR & CREDITOR
Deposits from customers
Free to use.
Demand of payment to be made by the
customer (Privileged Debtor?)
Customer (Creditor) doesn’t call for any
security from debtor (Bank).

7. Question : SB a/c Limitation Period?
 In case a bank does not pay a
customer’s SB deposits, the latter can
bring action for recovery within :
A.12 yrs of dishonour
B. 12 yrs from the date of cheque
C. 3 yrs of date of demand.
D. None of these

8. CREDITOR & DEBTOR
Loans & Advances
- Customer (Borrower)
& Banker (Lender)

9. BANKER AS AN AGENT
Agent does any act as per instruction
from principal.
Collect Cheques/ Dafts /Dividend
Warrants/Pymt of Insurance Premia, etc
on behalf of the customer.

10. BANKER AS BAILEE
 Gold Ornaments & Imp. Docs for Safe
Custody.
 Banker can’t use the articles
 Return of Identical Items on
Demand
 No interest
 Custodian & liable for any loss
due to negligence

11. LESSOR & LESSEE
 Safe Deposit Lockers
 Bank (Lessor) & Customer (Lessee).
WHY?
 Leases Out Space for Rent
 Not Responsible for Loss due
to Non Negligence

12. Question : Relationship termination?
 The banker – customer relationship does not
stand terminated upon:
A. Death of customer.
B. Lunacy of customer
C. Insolvency of customer
D. Arrest of the customer
E. Any of the above

13. Question : Relationship termination?
 The banker – customer relationship comes to
an end when the customer is:
A. imprisoned for criminal offence.
B. imprisoned for civil offence.
C. arrested for criminal offence
D. b or c
E. NOA

14. THANK YOU