Right Duties and Liabilities of Banker and Customer
In simple words banker denotes a bank. He is the person who represents bank in front of client and customer. Following are definitions of banker:
“ A banker is any businessman who is carrying on the business of banking “
The word customer has been defined in English or Pakistan’s law. In simple word a customer is such a person to whom you extend your services in return of consideration. The customer is defined as following:
“ there must be some sort of account either a depositor or a current account in some similar relation to make a man customer of a banker “ ...view middle of the document...
This right exist in the case of over draft also
To receive passs book / statement account:
A customer has a right to receive pass book or a statement of account. The statement of account show all transactions that have taken place in his account during a particular time period.
To sure bank for wrong Dishonour:
If the banker wrongly dishonoured the cheque of customer, a suit for damages can be filled against him. The general rule is that the smaller the amount the greater will damages.
To sure bank for disclosing secret information:
The customer has the right to also sue a bank if he finds banker guilty of disclosing his important information to others.
Duties of banker
The duties of a banker are extremely important. Followings are the duties of babnker:
To honour cheques of customers:
It is a formost duty of a banker to honour customer’s cheque and make payment accordingly. He bcan refuse to honour cheque only in some rare cases.
Duty of secrecy:
As already stated that the basic relationship that exist between bankers and customers is that of trust. So both the parties should take every step to preserve this relation. A banker is duty bound to care for secrecy of the client.
Execution of standing orders:
Ist is a bankers duty to execute all standing orders and instructions of the client.
A garnishee order is an order issue bu court to judgement creditor to attach the funds in hands of third person who own money to judgement debtor. The garnishee warns third person called “Garnishee” against releasing the money attached until directed by the court to do so. So when a Garnishee order is declared by a court in respect of customer , it is a bankers duty to stop operation of this account.
The banker is duty-bound to ensure proper safety of valuable and belongings of customers. As there is a bailor-bailee relationship between banker and customer so all the duties of bailee are also the duties of banker.
Duties of customer
Followings are the duties of customer:
With in business hours:
Although it is the duty of the banker to honour the cheques drawn by customer but at the same time it is the duty of customers to present them during normal business hour.
With in a reasonable time: ...