BANKING AFFAIRS

Detailed explanation-1: -A Banker’s lien is always a general lien. A banker has a right to exercise both kinds of lien. his general lien confers upon his the right to retain the securities in respect of the general balance due from the customer.

Detailed explanation-2: -A banker has lien on all securities and valuables of his customer, which come into his hands in his capacity as banker in the ordinary course of business.

Detailed explanation-3: -General Lien Example: If two securities are given to banker but a loan is taken against one of them he ( banker ) may retain both the securities until his claim is satisfied.

Detailed explanation-4: -Features of general lien – Banker’s The right is not restricted by law of limitation. The act only restricts the remedy through court and not discharges the debt. Hence, bank can recover debts even when time have exceeded also.

Detailed explanation-5: -"A banker’s lien on negotiable securities has been judicially defined as ‘an implied pledge’. A banker has, in the absence of agreement to the contract, a lien on all bills received from a customer in the ordinary course of banking business in respect of any balance that may be due from such customer."