Banking, Business

RIGHTS AND DUTIES OF BANKER AND CUSTOMER

RIGHTS AND DUTIES OF BANKER AND CUSTOMER

Right and Duties of Customers:

(DUTIES)

1. Banking Hours: A customer must present cheques for payment and collection during banking hours.

2. Out-Dated Cheque: A customer is required to present cheques for payment before they become stale or outdated.

3. Unauthorized Person: A customer should keep his Cheque Book under lock and key, so that it may not go into the hands of an unauthorized person.

4. Warning: If a customer knows or has reasonable grounds for believing that his signature is being forged on a cheque, it is his duty to warn the banker of the fact at the earliest opportunity.

5. Careful Draw of Cheque: A customer should draw the cheques in such a careful way that there is no room left for raising the amount.

(RIGHTS)

1. Right to Draw a Cheque: The customer has the right to draw cheques against his credit balance or when there is previous agreement to allow him Running Finance (old name Overdraft).

2. Right to Receive Pass Book: A customer has the right to receive a Pass Book or a Statement of Account.

3. Right of Correction: In a case there is over-crediting or over-debiting a customer has a right to get it corrected.

4. Right to Sue: A customer has the right to sue a bank if it fails to maintain the secrecy of his account or dishonours the cheque by mistake.

5. Right of Receiving Deposit: The customer has right to withdraw his deposited amount in bank at any time even he can withdraw from fixed deposit.

6. Right of Receiving Profit: It is the right of customer that he will receive profit or interest from bank on his deposited amount according to the decided rates.

Rights and Duties of Banker

(DUTIES)

1. Secrecy: It is the duty of banker to keep all the information and transaction about his customer secret, otherwise the customer can sue for any loss due to this reason.

 2. Payments: When a banker has to make payments on behalf of his customer, he must act in conformity with the instructions of the customer.

3. Collections: While collecting bills, salaries, dividends etc., a banker must take due care so as to protect the interest of the customer.

4. Trustee: While acting as a trustee, a banker must act in accordance with the terms and conditions contained in the Trust Deed.

5. Purchase and Sale of Securities:  In case of the purchase and sale of securities on behalf of his customer, it is the duty of a banker to obey the instruction of the customer.

6. Opening Letter of Credit: The opening banker must comply strictly with the terms and conditions laid down in the application form for opening a letter of credit. If the banker is negligent then he will have no right to claim any indemnity from the customer.

7. Safe Deposits: It is the duty of a banker to take care of the safe deposits as a man of ordinary prudence would do in case of his own articles in similar conditions.

8. Dealing in Foreign Exchange: A banker must follow strictly the Exchange Control regulations and instructions of the State Bank while dealing in foreign exchange.

(RIGHTS)

1. Right of Compound Interest: A banker has a right to charge compound interest on overdrafts, calculated on half yearly balances. It may change due to agreement made between the banker and the customer.

2. Right to Claim Charges: A bank has a right to claim bank charges and commission as compensation for the services provided. The services include collection of cheques, bills of exchange and dividends etc.

3. Right of Lien: A bank has a lien on the goods and securities of the customer to retain until he pays his dues. The bank can sell after giving proper notice. The bank has no lien on custody deposits and trust funds.

4. Right to Adjust Debit Balance: It is the legal Tight of the bank to set off or adjust the debit balance against the credit balance of the same borrower.

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