Banking Awareness – Pregnant Of Customer

Friends, inward our previous post nosotros guide maintain discussed almost the definition of Banker. In this post nosotros shall run into the pregnant of the Customer. The institution of human relationship betwixt banker together with client is real essential inward Banking Law. Unfortunately, at that topographic point is no Definition of client till today nether whatsoever Statue inward India. It is easier to recognize a client than to define the term customer.

The legal decisions throw merely about low-cal on the pregnant of the term ‘customer’. In Great Western Railway Company v. London together with County Banking Company (1909), a client was defined equally “a somebody who has merely about variety of an account, either deposit or electrical flow account, or merely about similar relation alongside a banker”.


Lord Dunedin (UK) (1920) stated “the give-and-take client signifies a human relationship inward which duration is non of the essence…. A somebody whose coin has been accepted past times the banking concern on the basis that the banking concern undertakes to honour cheques upto the sum standing to his credit, is, inward the sentiment of their Lordships, a client of the banking concern inward the feel of the statue irrespective of whether his connectedness is of long or brusk standing”.

Under the Republic of Republic of India police describe also, the relation must live on of banking nature. (Central Bank of Republic of Republic of India v. V. V. Gopinath Nair (1970, the Kerala High Court). Thus. fifty-fifty a unmarried transaction may constitute a customer. Frequency of transactions is non essential to constitute a somebody equally a client but the transactions are probable to boot the bucket frequent. The dealings must live on of banking nature. If the somebody goes to a banking concern inward lodge to pay electricity nib or band nib or to deposit valuables for rubber custody or to obtain modify for a one thousand rupee note, he cannot boot the bucket a client of the banking concern because the transactions are non of banking nature. They relate to casual services rendered past times banks.
It is essential that the dealing must live on of banking nature. The somebody may opened upward a electrical flow work concern human relationship or savings banking concern work concern human relationship in-order to boot the bucket a customer.
If whatsoever dispute arises betwixt a banker together with customer, it tin transportation away live on settled exclusively on the basis of the nature of human relationship that is existing betwixt them. Hence, it is real much essential to empathise the exact nature of human relationship that is existing betwixt a banker together with a customer. The human relationship betwixt a banker together with a client tin transportation away broadly live on classified inward 2 categories. They are,
  1. The full general human relationship betwixt a banker together with a customer, and
  2. The particular human relationship betwixt a banker together with a customer
We shall verbalise over inward item almost these relationships inward our adjacent post. Happy Reading 🙂 

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