What Is The Meaning Of Banker And Customer And What Is The Relationship Between Them?

A banker is a dealer in capital or more properly a dealer in money. He is an intermediate party between the borrower and the lender. He borrows from one party and lends to another. According to Doctor Herbert Hart, a banker or a bank is a person carrying on the business of receiving money and collecting data for customers subject to the obligation of honouring available on their current accounts. According to the banking company's ordinance 1962 banking has been defined as accepting for the purpose of lending or investment of deposits of money from public repayable on demand or otherwise and withdrawals by cheques, draft or order.

A customer is a person who maintains a regular account with the bank without taking into consideration the duration and frequency of operation of his account. To be a customer for any bank the individual should have an account with the bank. The individual should deal with the bank in its nature of regular banking business. He should deal with the bank without consideration of the duration and frequency of operation of his account. The relationship between banker and customer is of utmost importance. If is generally studied under the following two heads one is general relationship and special relationship.

The general relationship are - 1} bail-or Baile
2} agent principal
3} trustee beneficiary
4} debtor creditor

Trustee and beneficiary

You have been just appointed as a credit officer in resase bank.you have been just inform by the head of credit that the bank has introduce a new moddy credit software which uses cash based ratio to analyses financial status
the head of department has requested you to submit a memo explaining the key cash based ratios and their relevant of the credit function.

The relationship between the banker and customer is very important to be understood because if problems are encountered in future then they are settled down in consideration to the relationship between the banker and the customer. For the first time, banker and customer relationship was settled down in the year 1848 in England in the House of Lords in the case of Foley v Hill and it was defined by Lord MacKay. According to that description, the relation between banker and customers is a simple relation and it is neither relation of principal and agent nor a relation of a fiduciary nature. The different relationships are based on the dealings between the two parties. I have a very good article regarding it which will further help you to understand this relationship.

Relationships Between Banker And A Customer