Professional Documents
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RELATIONSHIP
TRANSACTION
*DEPOSITS *LOANS/ADV. *BILLS - COLLECTION *BP/BD *LOCKER *ARTICLES-SAFE CUS.
BANKERS RELATION
DEBTOR CREDITOR AGENT HOLDER FOR VALUE LESSOR BAILEE
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TERMINATION OF RELATIONSHIP
Notice of Death/insolvency of customer or
liquidation of company/lunacy Closure of a/c by customer (Voluntary) Closure of a/c by bank (Due Notice)
DUTIES OF BANKER
(1) To honour cheques provided 1. Cheque properly drawn 2. presented within business hours 3. Regular/proper endorsement 4. Sufficient balance in a/c/Limit 5. Relation is not terminated: a. death b. insolvent/lunatic 6. Payment is not stopped by drawer 7. Garnishee/income tax order
DISHONOUR OF CHEQUES
Funds insufficient/exceeds arrangement Stop Payment by customer or by attachment
order or court order/ withdrawal stopped owing to death or lunacy or insolvency of a/c holder/ Cheque Altered & no authentication, Cheque post dated, un-dated, out dated, Effects not cleared-Present again, A/c closed, Refer to drawer ect. Instrument specially crossed to ----------Earmarked balance not sufficient
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CONTINUED
Information to be furnished provided:
* Request is in writing under relevant section and act * Request is by authorised person * Furnish only asked information * Only specific(not general) infomation * Diff in a/c, name no info. to be furnished * Fact to be advised to a/c holder
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To provide passbook or statement of a/c duly completed in all respects (4)To collect cheques, drafts etc. (5) To give reasonable notice before a/c is closed.
RIGHTS OF A BANKER
PARTICULAR LIEN: I.e. TAILORS LIEN GENERAL LIEN: LEGAL POSSESSION
UNTIL THE WHOLE OF THE DEBT IS PAID. (1)BANKERS LIEN IS GENERAL LIEN KNOWN AS IMPLIED PLEDGE RIGHT OF SALE IS ALSO AVAILABLE TO BANK WITH REASONABLE NOTICE. AGAINST TIME BARRED DEBTS ALSO
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BORROWER ONLY AVAILABLE AFTER REPAYMENT OF LOAN ALSO CHEQUES FOR COLLECTION CREDIT BAL. SUBJECT TO RIGHT OF SET-OFF AND NOT LIEN Subject to exceptions to Bankers Right of Lien
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SET-OFF IS APPLICABLE IF
A/Cs ARE IN SAME NAME AND RIGHT BELONGING TO ONE PERSON i.e. SB A/C AND
PROPRIETORSHIP FIRMS ACCOUNT PARTNERS INDIVIDUAL A/C(CREDIT) AGAINST FIRMS DEBT AS LIABILITY OF PARTNERS IS JOINT & SEVERAL INDIVIDUALS A/C CREDIT BAL. AGAINST DEBIT BALANCE IN JOINT A/CS ALSO FORTWO A/CS AT DIFFERENT BRANCHES EVEN AGAINST TIME BARRED DEBTS SET-OFF BEFORE GARNISHEE/IT ORDER 13
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BANKERS RIGHTS
(4)CHARGE INTEREST,COMMISSION, EXCHANGE, INCIDENTAL CHARGES FOR SERVICES RENDERED AND SOLD TO CUSTOMERS
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CUSTOMERS DUTIES
A/c to be conducted satisfactorily.
Maintain Min. Reqd. Bal. Cheques to be drawn properly so as not to facilitate forgery or fraud. To give full & proper instructions while countermanding a cheque. To make demand for payment To pay charges for services rendered
THANK YOU
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