BANKING AFFAIRS

Detailed explanation-1: -The customer-banker relationship is built on trust and mutual understanding, and both parties have certain rights and obligations that they must adhere to. Banks have a fiduciary duty to act in the best interests of the customer and to use reasonable care, skill, and diligence in managing the customer’s assets.

Detailed explanation-2: -The legal relationship between a customer and the bank is based on contract and is generally classified as a debtor-creditor relationship. This means that when a bank or other type of ADI accepts money from a customer it does so as a borrower on terms that may be implied.

Detailed explanation-3: -In a banker-customer relationship, one of the roles of banker is to act as the trustee for customers. A bank is a place for customers to keep their properties especially cash in order to secure the safety of the properties, hence it is the responsibility of bank to ensure the security of these properties.

Detailed explanation-4: -Creditor and Debtor Customer who borrows money from the bank own money to the bank. In the case of any loan/advances account, the banker is the creditor and the customer is the debtor. The relationship is the first case when a person deposits money with the bank reverses when he borrows money from the bank.