BANKER AND CUSTOMER

BANKER AND CUSTOMER

• TO MAINTAIN SECRECY OF ACCOUNTS---
• ----------------TO CONTINUE UNTIL CLOSURE AND AFTER
• -------------EXEMPTIONS
• -COMPULSION OF LAW
• -PUBLIC INTEREST
• -BANK INTEREST
• -EXPRESS OR IMPLIED
• CONSENT OF CUSTOMER
 BANKER AND CUSTOMER
• DEBTOR-CREDITOR RELATIONSHIP- DEPOSITS
• PRIVELEGED DEBTOR BANKER
• CUSTOMER TO VISIT AND DEMAND
• PAID ONLY AT BANK WITHIN
BANKING TIME
• CUSTOMER IS AN UNSECURED CREDITOR
• RIGHT OF SETOFF/RIGHT OF
APPROPRIATION
 BANKER AND CUSTOMER
• OBLIGATIONS TO DEPOSITORS
• -----TO HONOUR CHEQUES WHERE SUFFICIENT FUNDS ARE
AVAILABLE/CHQ IS IN ORDER FOR PAYMENT IN DUE COURSE /IN GOOD FAITH
• TO PAY DAMAGES FOR WRONGFUL DISHONOR
• SPECIAL DAMAGES FOR LOSS OF REPUTATION AND
/CREDITWORTHINESS/BUSINESS TO TRADERS
• EXCEPTIONS –COURT ORDER(GARNISHEE ORDER)/INCOME TAX
ATTACHMENT/GOVT INVESTIGATING AGENCIES/UNDER BANK SET OFF
• CLOSURE OF ACCOUNTS UNDER NOTICE
• PAYMENT TO NOMINEES ON DEATH OF DEPOSITOR
• EXERCISING CARE AND DILIGENCE AS AGENT/UPHOLDING TRUST IN
FIDUCIARY CAPACITY AS ADVISER/SAFEGUARDING SECURITIES
• FAIRNESS IN SERVICE CHARGES AND DISCLOSURES
 BANKER AND CUSTOMER
• BANKER”S SPECIAL RIGHTS
• ----------------GENERAL LIEN OR BANKERSLIEN (RIGHT OF CREDITOR
TO RETAIN GOODS OR SECURITIES OWNED BY DEBTOR UNTIL
LOAN IS REPAID)
• RIGHT OF ACCOUNTS SET OFF –ADJUSTING DR BALANCE
ACCOUNTS AGAINST CR BALANCE ACCOUNTS PROVIDED BOTH
ACCOUNTS
-------BELONG TO SAME LEGAL PERSON /IN SAME CAPACITY/AND
DUE ON THE DATE OF EXERCISING THE RIGHT
• RIGHT OF APPROPRIATION –RIGHT TO APPLY RECEIPTS
TO A PARTICULAR ACCOUNT WHERE NO INSTNS ARE AVAILABLE
 BANKER AND CUSTOMER
• SOLE PROPRIETOR/PROPRITRIX
• HINDU UNDIVIDED FAMILY/JOINT HINDU FAILY-HUF--
EVERY MALE MEMBER-CO-PARCENER
• ------------------ELDEST MEMBER IS KARTA -AUTHORISED TO
OPERATE BANK ACCOUNTS
• MINOR ACCOUNTS---BYNATURAL GUARDIAN/COURT
APPOINTED GUARDIAN-
• MARRIED WOMEN
• SPECIAL TYPES-INSOLVENT/ILLITERATES/OTHER
INCOMPETENT TO CONTRACT
 BANKER CUSTOMER
• PARTNERSHIP FIRMS ( MAX20/BNKG 10)
• OPENING OF ACCOUNT--CONSENT OF ALL PARTNERS/MANDATE OR
AUTHORISATION
• PARTNERSHIP LETTER/REGISTRATION OF FIRM-(UN REGISTERED FIRM CANNOT FILE SUITS TO
RECOVER ITS MONIES-(HOWEVER OUTSIDERS CAN RECOVER)
• EVERY PARTNER JOINTLY AND SEVERALLY LIABLE AND ALSO ENJOYS IMPLIED POWER TO STOP ANY
TRANSACTION
• OENING OF ACCOUNTS/MORTGAGE CREATION ARE NOT ALLOWED FOR INDIVIDUAL PARTNERS
• RETIREMENT OF PARTNER—WITH NOTICE TO BANK AND FIRM\
• --------------------------------------- BANK TO DECIDE AFTER DEMARCATING LIABLITY FOR RETIRING PARTNER
• CLAYTONS RULE—DEATH/RETIREMENT/INSOLVENCY LIMITS LIABILITY ON
DATE AS FURTHER DEBITS ARE NOT BINDING-HOWEVER ALL SUBSEQUENT
CREDITS LIQUIDATE LIABILITY
• LIMITED LIABILITY PARTNERSHIP FIRMS –LLPUNDER COMPANY LAW
• ---LIMITED LIABILITY FOR PARTNERS/UNLISTED COMP CAN CONVERT TO LLP/
 BANKER AND CUSTOMER
• COMPANY ACCOUNTS
• DOCUMENTS REQUIRED—CERTIFICATE OF
INCORPORATION/MEMORANDUM OF
ASSOCIATION/ARTICLES OF
-----ASSOCIATION/BOARD
RESOLUTION/BORROWING POWERS
• CERTIFICATE OF COMMENCEMENT OF
BUSINESS(PUBLIC LIMITED COMPANIES)
• REGISTRATION OF CHARGES WITHIN 30DAYS
 BANKER AND CUSTOMER
• CLUBS/SOCIETIES AND NON-TRADING
INSTITUTIONS
• REGISTRATION/RULES/BY-LAWS/RESOLUTION/MANDATE
OF OPERATION
• LIQUIDATORS/TRUSTEES/EXECUTORS/ADMINISTRATORS
• ---------------AUTHORISATION LETTERS /REGISTERED DEED
• CAUTION AGAINST CONVERSION
• COMPANY VS DIRECTOR
• PARTNERSHIP VS PARTNER/
• CLUBS
 DEPOSIT FRAUDS-EXTERNAL
• FAKE CUSTOMERS-INDIVIDUALS AND INSTITUTIONS –IMPROPER
DOCUMENTS-FORGED DOCUMENTS –FAKE DOMESTIC AND FX CURRENCY
• PROPER DOCUMENTATION-BUT VANISHING CUSTOMERS-KYC NORMS NOT
FOLLOWED-INTRODUCTION PROCEDURE IGNORED
• FORGERY IN PERSON SIGNATURES-FORGERY IN ABSENTIA SIGNATURES-AT
OPENING-IN OPERATIONS OF CHEQUES-RAISING LOANS AGST DEPOSITS-
OPERATING DORMANT/INOPERATIVE ACCOUNTS-FORGERY –OF SECOND
SIGNATURE
• AFTER OPENING DEPOSITING STOLEN CHQS AND
WITHDRAWING ON REALISATION
. WITHDRAWING AGAINST UNCLEARED POSITIONS
,.CONVERSION IN ACCOUNTS-TAMPERINGWITH OWNERSHIP OF ACCOUNTS
---FRAUDS IN AGENCY DEPOSIT COLLECTION ACCOUNTS
 DEPOSIT FRAUDS-INTERNAL
-MIS APPROPRIATION BY STAFF
CASH SECTION-COUNTERFOIL WITHOUT CREDIT
IN ACCOUNT
DEPOSIT COUNTERS-COLLUSION IN
IMPERSONATION AND FORGERY
REPLACING PHOTOS AND SIGNATURES
ADDING JOINT OPERATIONS/ASSISTING
CONVERSION/OPERATING INOPERATIVE
ACCOUNTS/RAISING LOANS AGAINST DEPOSITS