Banker

Banker includes a body of

persons, whether incorporated or
not, who carry on the business of
banking'
ustomer
Anyone ls cusLomer
lndlvldual
Croup
A LrusL
An lnsLlLuLlon
CovL/semlgovL/local selfgovL organlzaLlon
ebtor-reditor
When Customer depos|ts money
reditor-ebtor
When 8ank |ends Money
BaiIee- BaiIor ReIationship
Jen CusLomer deposlLs valuables
bonds securlLles eLc
ent-PrincipaI
ReIationship
When 8anks renders serv|ces ||ke rem|ttance and
co||ect|on of b|||s(Cheques)
When 8ank co||ects serv|ce charges
8ank
AgenL
CusLomer
rlnclpal
essor and essee
8ank
Lessor
CusLomer
Lessee
hen Bank Provide safe deposit lockers
to customer who hire them on lease
%rustee and Beneficiary
8ank
1rusLee
CusLomer
8eneflclary
hen a trust is created appointin Bank
as a trustee
$R OF OUN%$
8ankers are obllgaLed Lo malnLaln secrecy of
a/cs' wlle openlng and afLer closure a/cs'
8ank ls llable Lo compensaLe lf Le LrusL ls
broken
Secrecy of Le sLaLus of cusLomer's a/c are
quallfled noL absoluLe
iscIosures permitted by Iaw and
practice
Dnder Law
lncome 1ax AcL 1961 (Sec 131 133(6))
Companles AcL 1936 (Sec 233 237)
8anker 8ook Lvldence AcL 1891 (Sec 4)
88l AcL 1937 (Sec 26)
lorelgn Lxcange ManagemenL AcL 1973 (Sec 11)
ClfL 1ax AcL 1938 (Sec 36)
&nder express or implied consent
of the customer
CusLomer permlLs Lo be dlsclosed Lo ls
prospecLlve guaranLor or cusLomer
8uL lL ls necessary Lo geL Le consenL of Le
cusLomer
ommon courtesy among
bankers
lL ls cusLomary wlLln ln Le bankers
An lmplled consenL of Le cusLomer ls
presumed Lo exlsL
1e lnformaLlon ls kepL confldenLlal aL boL
ends
AdequaLe precauLlons sould be consldered
abouL Le confldenLlallLy
isclosure in the bank's
interest
A banker can dlsclose ln case of legal dlspuLes
A dlspuLe wlL banker and cusLomer regardlng
Le balance sLandlng or loan defaulL
1o proLecL Le bankers lnLeresL Ley wlll [usLlfy
wlL reveallng Le ln formaLlons Lo Le
guaranLor or
1o sollclLor for lnlLlaLlng legal proceedlngs
isclosure in Public/National
interest
8anker may be requlred Lo make dlsclosure
ln Le lnLeresL of Le naLlon and publlc aL
large
ubllc lnLeresL may be reckoned only
accordlng Lo Le prevalllng clrcumsLances
PRU%ON$
8ankers sould adopL proper precauLlon wlle
dlscloslng flnanclal sLaLus Lo Le cusLomers
Dndue or lrrelevanL lnformaLlon can only
make Le banker llable for compensaLlon
And also Le Llrd parLy wlc uses Le
lnformaLlon may also suffer loss
Precautions to be adopted
nly facLs sould be revealed dlsclosure
sould noL be of rumors
nly general Lerms sould be used Lo descrlbe
Le credlL sLandlng of Le cusLomer
Ceneral Lerms commonly used ln banklng
fraLernlLy llke 'ordlnary' 'falr' 'good'
'excellenL' 'unsaLlsfacLory' 'ln ordlnary course
of buslness'
Precautions to be adopted
Secrecy sould be malnLalned by Le reclplenL
also
lL common pracLlce wlLln Le bakers Lo sare
lnformaLlon ln sLrlcL secrecy Lerefore
1e banker glvlng lnformaLlon wlll noL be
responslble or llable for Le lnformaLlon glven
so
So Le reclplenL sould LreaL lL as confldenLlal
Precautions to be adopted
lnformaLlon sould noL be glven ouL of
conLexL wlLouL [usLlflcaLlon
lf Le person ls noL dlrecLly concerned wlL
Le cusLomer of Le bank Len
1e banker sould noL make suc dlsclosure
Furnishin of opinion:
mportant aspects
ne of Le maln duLles of banker ls Lo submlL
a oplnlon reporL of ls cusLomer
Pe ls also requlred Lo obLaln suc reporL from
oLer banks before processlng credlL
appllcaLlon
8ank obLalns oplnlon reporL for a new
cusLomer from oLer banks wo olds a a/c
spects to consider while
submission of report.
An lmplled auLorlLy ls avallable form Le
cusLomer Lo dlsclose lnformaLlon slnce
CusLomer would be underLaklng some llablllLy
dlrecL or conLlngenL llke as requesLed for
credlL faclllLles or would be accepLlng bllls pr
would be a guaranLor eLc
Furnishin of opinion:
mportant aspects
8eporL sould be of facLual records aL Le
bank
no speclal efforL sould made Lo obLaln more
lnformaLlon abouL Le cusLomer for merely
submlLLlng of reporL
Furnishin Of Opinion:
mportant spects
1e oplnlon sould be of general Lerms only
1e bank sould noL mlsgulde/mlsrepresenL
oLer bank
8ank sould glver Lrue oplnlon of Le
cusLomer as elp ln Le bank
Jlle lndlcaLlng worL of Le cusLomer ls lL
cusLomary Lo noL Lo glve ln numbers buL use
convenLlonal Lerms used ln banks
Furnishin Of Opinion:
mportant spects
Jlle preparlng Le reporL Le bank sould
sLlpulaLe LaL
1e reporL ls submlLLed wlLouL any
responslblllLy on Le parL of Le bank and lLs
offlcers
And also lndlcaLe LaL all ln formaLlons so
furnlsed sould be LreaLed as confldenLlal
Sources
8uslness references
8ank references
CredlL lnformaLlon agencles
Camber of commerce
Lmployers
CredlL appllcaLlon forms of Le
defaulLers submlLLed Lo Le credlLors
#ecap
ln a deposlL accounL Le relaLlonslp beLween
Le bank and cusLomer ls LaL of debLor and
credlLor (8ankuebLor CusLomerCredlLor)
ln case of loan (8ankCredlLor CusLomer
uebLor)
ln case of remlLLance lorelgn excange
buslness collecLlon of bllls/ceque (8ank
AgenL CusLomerrlnclpal)
#ecap
ln case of safe deposlL locker (8ankLessor
CusLomerLessee)
8ank also funcLlons as execuLor and LrusLee
for and bealf of Le beneflclarycusLomer
%he term 'debtor' means
a) person who owes some debt
b) person to whom some debt is
owed
c) Lender
d) None of the above
%he term 'creditor' means
a) person who owes some debt
b) person to whom some debt is
owed
c) Lender
d) None of the above
hen a customer deposits money in a Bank
a) ustomer is a Bailee and Bank is a Bailor
b) ustomer is a reditor and Bank is a
ebtor
c) ustomer is a ebtor and Bank is a
reditor
d) ustomer is a Principal and Bank is a
agent
hen bank grants overdraft facilities
to a customer but account is in credit
balance, banker is
a) reditor of the customer
b) Principal of the customer
c) ebtor of the customer
d) %rustee of the customer
hen Jewels are deposited in
Banks for safe custody what is the
bank-customer relationship?
a) %rustee & Beneficiary
b) Bailor & bailee
c) gent & Principal
d) Lessor & Lessee
hen a customer takes a locker in a
bank, what is the Bank-customer
relationship?
a) Lessor and lessee
b) Pledgor and pledgee
c) Principal and gent
d) %rustee-Beneficiary
hile collecting a cheque / bill etc. for a
customer the bank acts as a ____
a) ebtor
b) %rustees of the customer
c) gent of the customer
d) None of the above
bank received the payment of an outstation
bill on behalf of his customer, But before the
money could be credited to the customer
account the bank failed. hat is the
relationship between the bank and the
customer?
a) reditor and ebtor
b) Principal and gent
c) Bailer and Bailee
d) %rustee and Beneficiary
hen is a trustee beneficiary
relationship established
a) Opening of an account
b) losure of an account
c) hen Bank Fails
d) hen a bill is collected
%he secret of ustomers account is
a) Not disclosed to any one
b) isclosed to Public
c) isclosure Permitted under the
Law
d) None of the above
Bank can disclose confidential
information about the customer
a) %o other customers of the Bank
b) %o uditors of the Bank
c) %o Statutory authority as required
by law
d) None of the above
Bank can disclose confidential
information about the customer
a) s permitted by law
b) Under express or implied consent
of the customer
c) n the Bank's nterest / National
nterest
d) ll the above
Precaution to be adopted while
disclosing the customer information
include that
a) Only facts should be revealed
b) Statement should be general
c) nformation should not be given out
of context
d) ll the above
#ecovery gents have a duty to keep
confidentiality of customer's accounts and
other information, in terms of:
a) %he contract ct
b) %he B 's Model policy on ollection of
dues
c) %he #B 's draft guidelines on recovery
agents engaged by banks
d) ll the above
%he sources of information to compile
opinion reports on the means and
assets of the defaulters can be obtained
discreetly from ____________
a) Bank reference
b) Employee
c) ity Police
d) Neighbor
%he sources of information to compile
opinion reports on the means and assets
of the defaulters can be obtained
discreetly from ____________
a) Business references
b) Employers
c) redit information agencies
d) ny of the above