Define the Term Banker and Customer

Term Banker and Customer


Banker Definition G. Crowther


“A banker is a dealer peoples”





“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”


Customer Definition By dr. hart


“A customer is one who has an account with the banker or for whom a banker habitually underrates to act as such”



By Justice Lindley


“Customer is a person who has some sort of account either deposit or current account or some similar relation with a banker”


The customer must be…..

He should not be a minor

He should be person of sound mind

He should not have been debarred from entering into any contract under the law




General Relationship



Debtor and creditor


“The basic relationship is that of debt r and creditor. If a customer deposits money in the bank he is the creditor and the bank is debtor. If the customer has an overdraft balance then he is the debtor and bank is the creditor”




Special Relationship Principal

The customer is the principal when deposits cheque, drafts, dividends for collection with bank. The bank is an agent when he sells or purchases securities and installment of loans etc.


Bailer and Bailee


When a customer hands over his valuable to the bank for safe custody then the customer becomes the bailer and the bank is the bailee. And charges small amount for services rendered


Pledger and Pledgee


When the customer pledges moveable properly with the banker as security for loans, he becomes pledger and banker as pledge. This relationship also knows as pawner and Pawnee. The pledged good should be returned after the debt is repaid by customer.



Mortgagor and mortgagee


When the loan is taken against immovable property the customer is called mortgager and the banker is mortgagee.



Banker is a trustee and Executor


The banker receives valuable and documents of he customer and keeps them in safe custody. The banker also executes the standing instructions of its customers so banker becomes as trustee and executor.





Bank usually undertakes financial consultancy for their client. In such a situation the bank becomes a consultant. When a bank advises his client on any important financial matter, bank b comes advisor and client becomes advisee.


Guarantor and principal debtor


Guarantor is the person who gives the guarantee. Principal debtor is the person for whom the guarantee is given. Today’s banking business giving of guarantee is an ordinary job of a bank when a bank gives guarantee, it becomes guarantor and client becomes principal debtors.


Financer and Financee


When the banker provide loan to his customer he become financer and customer becomes financee.



Indemnifier and indemnity holder


Indemnity is a contract when one party promises to save the other party form the loss caused to him by the conduct of the promisor himself or by the conduct of any other person the person who promises to make good the loss is called indemnifier and promise is called indemnity holder. So the bank makes a contract of indemnity with the client, bank becomes indemnifier and client becomes indemnity holder.


Reference and Referee


When a bank informs the state bank or any other authority about the financial status of a client, bank is called referee and client becomes reference



Termination of the Relationship


The relationship between customer and bank is terminated in following conditions

Termination by customer

The rate of interest is not acceptable to him

Bank does not give him facility as offered by other Not satisfied with the services

His confidence in the bank is shakened due to change of customer death

He change his place of residence



Termination by Banker


If the customer does not obey the banking hours.

Intimation of death of customer Due to insanity of customer

Due to insolvency of the customer Due to court order

Character is not satisfactory


Note: It is worth noting that not all specialties can be mastered through distance learning. For example, you can’t learn from a doctor without attending a university for practical knowledge. Most often distance education courses include specialties related to information technology and commerce. Now let’s find out in more detail how this training happens? Each student has his personal page on the website of his university, where teachers send manuals, textbooks and necessary teaching materials for self-study of the subject, as well as assignments that the student must send to the teacher for verification. In the same way all tests, tests and exams are surrendered. Then the teacher also sends an e-mail to the student with his assessment or sends back his work to correct the errors. There are several types of distance learning technologies: Case technology. It involves the use of paper carriers in the form of workbooks, which the tutor regularly checks. The interaction between the student and the teacher in this case is carried out through postal transfers or personal meetings in the training centers. Television and satellite technology is very rarely used because of the high cost and lack of technical opportunity for students to use it. Its main drawback is the lack of feedback between the tutor and the student. Network technology or online training. Most often, distance education includes all these three technologies, but in different proportions. Of course, the use of the Internet prevails in the educational process, but students also receive CDs with educational materials and lectures.

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