Banker and Customer

Introduction 

• Banking industry occupies an important place in nation’s economy. One cannot think of the                  development of any nation without the active assistant rendered by financial institution. 

• Right from small businessman, up to the biggest business tycoon, they invariably depend upon            finance of different type given by the bank. Therefore, one has to accept that the banking                    industry play vital role in every field and every juncture of the business.

• This chapter deal with the relationship that the exists between the banker and the customer. The            relationship start right from a movement on account is opened and it come the end immediately          on course of the account.

1. Meaning of Banker and Customer 

Meaning of the banker: the banker are the term “banker “refer to the person or company carrying on the business of receiving the money and collection drafts, for the customer subject to obligation of honoring check draw upon them from time to time by the customer to the extent of the amount available on their current accounts.

Form definition given above, it is clear that if any person or institution fulfill the following conditions, it will satisfy the definition of banker or the banking company. 

a. Accepting of deposit from the public, the deposit maybe the different type, current, save and               fixed etc.

b. Such deposit must be withdrawal by check and draft.

c. Any money accept deposit must be for the purpose of lending or investment.

d. Perform of banking business as the main business.

Meaning of Customer: the term “customer “ is fund the definition or technical word in the Cambodian law on Negotiable instruments and payment transactions: Customer an individual, whether carrying on a business or not, or a legal entity. Including a bank, having an account with an account. They can refer to the ordinary language in the banking business that the customer is a person who has an account in a bank is considered its customer.

Thus, in order to constitute a person as a customer, he must satisfy the following conditions: 

1. He must have an account with the bank-ie saving bank account, current deposit account, or fixed         deposit account.

2. The transactions between the banker and the customer should be of banking nature i.e., a person         who approaches the banker for operating safe deposit locker or purchasing traveller check is not        a customer of the bank since such transaction do not come under the orbit of banking transaction.

       The special type of customer are those who are distinguished from other type ordinary customer            by some special feature. Hence, they are call the special type of the customer. They are to dealt with carefully while operating and opening the account. They are :

1. Minors: a minors is person who has not completed 18 year of age. The law has specially                protected a minor merely because his mental faculty has not fully developed and such, he is likely to commit a mistake or even blunders which will affect his interest adversely. It is for the reason, the law has come to the recuse of a minors. A banker can very well to open an account in the name of a minors. But the banker has to be careful to ensure that he does not open a current account, if a current account is open and stand overdrawn inadvertently, the banker has no remedy against a minor, as he can not be take to a court of law. It is for the reason that the banker should be careful to see that the invariably opens the saving bank account.

2. Lunatics: A lunatics or an insane person is one who on account of mental derangement, is incapable of understanding his interests. Since a lunatics customer an incompetent party, the banker has to be very careful for dealing with such customer. The banker should not open an account in the name of a person of unsound mind. On coming to know of customer’s insanity, the banker should stop all operation on the account and await a court order.

3. Drunkards’ : a drunkard is a person who can on account of consumption of alcoholic drink get himself intoxicated and thereby, lose the balance over his mental faculty and hence, is incapable of forming rational judgments. A banker has to be very careful in dealing with the customer. Encashment of his check especially when he is drunk, the banker should make immediate payment. This is because of the customer may afterward ague that the bank has not made payment at all. Therefor, it is better and safe that the banker should insists upon such customer getting a witness to countersign before making any payment against the check. 

4. Married women: an account may be opened by the bank in the same of married women was as she has a power to draw check. At the time of opening an account in the same of a married account. It is advisable to obtain the name and occupation of her husband and name of her employer. 

5. Insolvents : when a person is unable to pay his debt in full, his property in certain circumstance is taken possession of  by official receive or official assignee, under order of the court.

6. Illiterate Person: A person is said to be illiterate when he does not know to read and write. No current account should be opened in the name of an illiterate person. However, a saving bank account maybe open in the name of such a person, one the account opening from the bane should obtain his thump mark in the presence of two person known to the bank and depositor. Withdrawal from the country by the account holder should be permit after identification every time. The person identification the drawer must be known to the bank and he should preferably not be a member of the bank’s staff.

7. Joint Accounts: when two or more person open an account jointly, it is call joint account. The banker should be take the following precaution in open and dealing with the joint account.

a. The application of opening joint an account must be sign by all the person intending to open an            joint account.

b. A mandate containing name or name of person authorizes to operating an account.

c. The full name an account all the document furnish to the banker even if the account is to be                 operated upon by once or a few of the joint account holder.

d. Banker must stop operating an account as soon as notice of death, insolvency, insanity.