Banker and customer relationship

2. Marketing of Banking Assets and Liability
Thanks to our Respected Sir !
Sir Khalid Rafique

3. 3
Group Members
 Mubashar Maqbool
13- 32
 Waseem Baig
13-48
 Muhammad Shan
13- 44
 Muhammad Sartash
13- 46
 Muhammad Ali
13-08

4. Topic:
Banker and Customer
Relationship

5. Bank:
• Bank core business is accept the deposits of money from
public.
• Utilize the deposits in lending to borrowers or investments.
• Bank repayable back to depositors on demand.
• Deposit of money withdraw thorough cheque draft order &
otherwise.

6. Two deposits classified:
Demand deposits
 Like current account & PLS saving account
 depositors present the cheque on counter or inset his ATM card in ATM
machine & bank is payable to depositors
Time deposits:
 Bank retain the deposits for specific time period(1 , 6, 12, 24, 36 months)
& withdrawn on the expiry time period.

7. Customer:
• A person/ company/entity who has an account with a bank is a
customer.
• There is no unanimity as regards to the time period of the
dealings. A casual transaction like encashment of a cheque
does not entail a person to be customer.
• The duration of association of the customer with the bank is of
no essence.

8. Relationship b/w banker & customer
• Relationship is based on offer & acceptance.
• At time customer depots the money he should be offer and
banker is acceptance.
• At the time of financing ; banker offer the amount through
offer letter and customer accept it up on their signature.
• When customer open the account in bank then create a relation
between banking and customer.

9. Under the LAW of contract person are able in ‘‘section 11: of
contract act’’
• Person have maturity aged (+18)
• Person is sound mind
• Person is not disqualified in contract by court.

10. Other Relationship
1. Debtor and creditor:
• Bank (debtor)
• Customer (creditor)
When customer deposits their money in bank
2. Creditor and debtor
• Bank ( creditor)
• Customer ( debtor)
When bank offer the finance amount through offer letter

11. 3. Principal and Agent (section 182, contract act)
• Customer (principal) deposits checks, drafts, dividends for collection with
the bank.
• He also gives written instructions to the bank to purchase securities, pay
insurance premium, instalments of loans etc on his behalf.
• When the bank performs such agency services, he becomes an agent of his
customer.
4. Bailer and bailee: (section 148, contract act)
• During certain circumstances banker becomes bailee. When he receives
gold ornaments and important documents for safe custody he takes charge
of it as bailee and not trustee or agent.
• He cannot make use of them as he is bound to return the identical articles
on demand.

12. 5. Pledger and pledgee/ pawner and Pawnee
• Pawn is a sort of bailment in which the goods are delivered to another as a
pawn, to be a security for money borrowed.
• Thus a banker acts as a Pawnee where a customer delivers he goods to him
to be kept as security till the debt is discharged. The banker can retain the
goods pledged till the debt is paid.
6. Mortgager and mortgagee
• He relation between a banker as mortgagee and his customer as mortgagor
arises when the latter executes a mortgage deed in respect of his immovable
property in favour of the bank or deposits the title deeds of his property with
the bank to create an equitable mortgage as security for an advance.

13. 7. Banker and trustee
• When banker appointed as receiver by court in proceeding, money is
deposited in bank and bank act as trustee because in this case bank is
receiver of money for specific propose.
• A banker becomes a trustee under special circumstances. When a customer
deposits securities or other valuables with the banker for safe custody, the
banker acts as trustee of customer.
8. Advisory relationship
• When bank advises the customer to make their investment in particular
business, trade , project etc…

14. Termination of relationship
• Banker and customer relationship is established when
customer is open the account and both parties are able to
terminate the relationship by closing the account.

15. Account close by customer:
 When customer shift some where & it is not feasible and
convenient to maintain the account in particular branch.
 When customer is dissatisfied the branch service.
 When bank not offer the particular service which is required
by customer.
 When customer not receive the periodically account
statement.
 When customer find improper behaviour of bank staff.

16. Account close by bank:
 When customer pass habitual cheque for payment without
having sufficient balance in A/C.
 When customer account balance is nil more then 6 months.
 When customer regularly present the cheque for payment
after counter hours of bank.
 When customer not maintain minimum balance in account.
 When customer involve in money laundering.
 When customer is insolvent
 When customer id declared as insane.

17. Deceased Account:
When customer is die/ death, banker is terminated the account
which is called deceased account. Amount of account paid to
his legal beneficiary.
If persons is death
(Deceased Account)
Indemnity bond Succession certificate

18. Rights and regulations of bank & customer
Rights of bank
1. Right of lien:
Banker have a right to retain the things/property belonging to
another, until the due of debt is received.
2. Right of set off:
Adjusting the debit balance in the amount of customer against
the credit balance in other account of same customer

19. 3.Right to charged for services:
Banker have the right to charged for service which provided to
customer. Bank notify the schedule of charges of their services
on semi-annually .
4.Revision of charge:
Banker have the right to revision of charge of services which is
offer to customer.

20. 5. Recovery of makeup:
Banker have the right to recover the makeup as per term
and condition of finance agreement.
6. Recover of recovery makeup:
When customer not pay the make-up at timely then
banker have a right charged the penal mark-up.
7. Right to close the A/C:
Bank have the right to close the account for any certain
reason but after the notice.

21. Obligation of bank
1. Banker have a responsibility to ‘‘open the A/C’’ accept the
deposits
2. Banker have the responsibly to accept the cheque but within
the counter hours of bank.
3. Banker have the responsibility to giving the notice before
closing the account.

22. 4. Banker have the responsibility to make a payment when
customer present the cheque on counter for payment.
a) It drawn properly
b) It is drawn any branch of bank, where it is presented for payment.
c) No defect, in apparent tenor of cheque, not a stale, post dated, out of
date, mutilated, turnout.
d) When customer present the cheque there is sufficient credit
balance id available in bank A/C.
e) No, legal bar in payment of cheque

23. 5. Banker have the responsibility to keep a secrecy and
congeniality of customer A/C and not disclosed the balance of
customer account to their person,
if banker disclosed is then customer have a right to sue the bank
but some case banker have a right to close the information.
a) When information required by police officer if customer in value in any
crime.
b) Wen customer in value in money laundering, terrorist, financing,
criminal activity.
c) When bank has to file recovery suit against the customer for the
recovery bank due.
d) Customer some time provide the account statement to other
departments , agencies who require the statement for verification like
VISA agency.

24. • 6. banker have the responsibility to provide the account
statement periodically to its customer
• 7. banker have the responsibilities to pay profit to customer if
he deposit in profit bearing account.
• 8. bank have a duty to issue the cheque book, ATM card.