Banker

A banker is a person transacting the business of accepting, for the purpose of lending or investment of deposit of money from the public ,repayable on

demand

or

otherwise

and

withdrawable

by

cheque,draft,order or otherwise and includes any Post Office Savings bank. Section 3(b) of N. I. Act, 1881

Customer
A person becomes customer as soon as a business

relationship is established.
It is not necessary for the account to have been opened for a long or for the business to be conducted over a regular period.

Two Conditions are Important for Becoming a Customer of a Bank

There has to have some habit of dealing between him and the banker with or without opening an account.
The transaction so made ought to be in the nature of regular banking business.

Base of Banker-Customer Relationship Trust

Behavioral Aspects

Relationship Ladder

Customer

Client

Supporter

Advocate

Development Partner

Customer
Deposit account holder Borrower Purchaser of DD,TT,PO

Importer
Exporter

Remitter
Bill payer

Task of the Banker

Know your Customer Well behaved,ever smiling Attentive for satisfying customer Use of courteous language Keep contact with the customers To be mentor of the client Send success stories Seek advice from the client Consider your client as development partner

The Nature of Service Rendered by the Banker

Traditional Services

New Services

Traditional Services
Maintenance of different types of deposit accounts.
Grants of advances and loan facilities Collection of cheques and other instruments Issue of guarantee Remittance facilities

Purchase and sale of securities

New Services
Schemes for deposit mobilization Credit card / Debit card Travelers cheques Service after banking hour Merchant banking Factoring

Lease Financing
Venture Financing Offshore banking

Types of BC Relationship
General Relationship
Special Relationship

Banker Customer Relationship(General) Debtor- Creditor Relationship Agent- Principal Relationship Bailor- Bailee Relationship Lessor Lessee Relationship Mortgagor- Mortgagee Relationship

Trusty- Beneficiary Relationships

Special Relationship
Right of lien Right of set-off Bankers right of automatic set off Right to claim incidental charge Right to charge interest and commission

Responsibilities & Duties of Banker

To accept deposit To honor cheque if it is drawn & presented properly To maintain secrecy of the customers account To collect cheques,bills ,drafts etc in the customers account

Responsibilities & Duties of Banker

To provide statement of the account To comply special instruction To give reasonable notice before closing the account To make payment of interest To maintain true account of the client

Termination of Banker Customer Relationship

Termination by the banker Termination by the customer Customers death Customers insanity

Customers insolvency
Notice of assignment Garnishee order (Garnishee Order Nishi and Absolute
Garnishee Order)

Change in the constitution of customers firm

Relationship Banking
Valuing the Relationship (Extra Caring) Customer Relationship Management

Thanks for Patience Hearing