GENERAL KNOWLEDGE

Detailed explanation-1: -taken loan or any other form of financial accommodation from the banker, the customer becomes the debtor and the banker becomes the creditor. The debtor and creditor relationship of banker and customer has certain features: A banker is a debtor, when he holds his customer’s deposit.

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: -Answer & Explanation When the bank lends money to the customer, the customer is the borrower and the bank is the lender. The relationship between the banker and the customer is therefore that of a creditor and a debtor.