Relation between Banker and Customer
The Relation between Banker and Customer is Contractual method. It is regulated by general provisions of the law of contract. The main rules of agency, where applicable and banking practice. There may be the following relationship between banker and customer.
The best few Relationship between Banker and Customer
- Account holder and Creditor
- Bailee and Bailor Relationship
- Social Relation between Banker and Customer
- Trustee and Beneficiary Relationship
- Principal and Agent
I. Account holder and Creditor
Relation between Banker and Customer is account holder and Creditor. However, who is the thing that at a specific second relies upon the condition of the client's record. On the off chance that the record shows a credit balance, the financier will be an account holder and the client a loan boss. In any case, if there should be an occurrence of charge parity or overdraft, the financier will be the bank and the client the debitor.
II. Trustee and Beneficiary Relationship
The banker turns into a trustee when he acknowledges protections or significant from the clients for safe guardianship. New bank of India Ltd v. P. Lal AIR 1962 for this situation, it has been seen by the Supreme Court that where the sum is saved by the client for a reason, the broker goes about as a trustee as to the parity of the sum after satisfaction of the reason.
III. Principal and Agent
A Banker goes about as a specialist of his client and plays out various office capacities e.g the investors gather minds his sake and makes installment of different duty of his client viz. protection premium.
IV. Bailee and Bailor Relationship -
A bank Function as a bailee when it keeps important articles, trimmings, title deeds, and so on of its client. The bank takes care of these things and it is suggested the duty of the bank to restore these things securely. Accordingly the bank is a bailee and the client is bailor.
V. Social Relation between Banker and Customer
The financier has a commitment to respect the checks of the client up to the sum remaining to the credit of the client's record. The investor can practice an overall lien over the reports
The financier is under commitment to suspend the activity of records by the client on receipt of garnishee over from the court gave under Order 21, Rule 46 of the Civil Procedure Code 1908. The financier can charge the enthusiasm for defaults in reimbursements of advance by the client or for overdrawn sums.