BANKING AFFAIRS

Detailed explanation-1: -The relationship between the banker and the customer is therefore that of a creditor and a debtor.

Detailed explanation-2: -Debtor and Creditor Relationship-The relation of banker and customer is primarily that of debtor and creditor. But who is what at a particular moment depends on the balance of the account of the customer. If the account shows a credit balance, the banker will be a debtor and the customer a creditor.

Detailed explanation-3: -b) Trustee and Beneficiary: When a cheque or a bill of exchange is deposited with a bank for collection, the bank becomes a trustee for the cheque or bill till it is collected. Of course once the cheque is collected and the proceeds are credited to the customer’s account the banker becomes the debtor.

Detailed explanation-4: -The drawer is the person requesting the demand draft; the bank paying the money is the drawee; the party receiving the money is the payee.