BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When there are complaints from the customer
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When the bank accept the complaint from the customer
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When the customer is declared of unsound mind
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All of the above
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Detailed explanation-1: -According to the rules, whenever banks learn that one of their customers is incapable of operating the account due to mental incapacity the operation in such a customer’s account would be immediately suspended. As per the law, a contract with the mentally unsound person is void ab initio.
Detailed explanation-2: -The bank-customer relationship, being a contractual bond, may terminate via agreement or consent, notice of termination, death or dissolution of one of the parties, sequestration, insanity of the customer, and the natural effluxion of time.
Detailed explanation-3: -In case an account is dormant or inactive and the bank has sent repeated requests to the customer to activate the same, the bank can close an account.
Detailed explanation-4: -If the banker dishonours any cheque without sufficient reasons, he will be held liable to pay damages to his customer under Section 31 of the Negotiable Instruments Act, 1881. In case of default by the customer to close the account, the banker should close the account and send the money by draft to the customer.
Detailed explanation-5: -➢ The Bank will not terminate a customer relationship without giving reasonable or contractual prior notice.