1.

Explain the relationship between the banker and its customers.

Answer»

Relationship between bankers and customers : 

The relation between a banker and customers falls under two broad categories, namely.

1. General relationship 

2. Special relationship

1. General relationship

  • Primary Relationship (Debtor and creditor relationship). 
  • Subsidiary Relationship (Trustee and beneficiary relationship.) 
  • Agent and Principal Relationship

2. Special relationship 

  • Obligation to honour cheques. 
  • Obligation to maintain secrecy of accounts.


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