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Unit 4: Banker-Customer Relationship
4.1 Bank, Customers and Banking Services
The customer is the person who opens an account and maintains a banking relationship — not a one-visit visitor. Services flow both ways: the bank takes deposits, lends, transfers, keeps valuables, and advises; the customer supplies funds, instructions, and fees.
4.2 Characteristics of the Banker-Customer Relationship
- Contractual — rooted in the account agreement’s terms.
- Fiduciary in part — confidence and secrecy beyond the bare contract.
- Continuing — a running relationship, not a single transaction.
- Personal in part — the bank must know its customer (KYC under the anti-money-laundering regime).
4.3 Types of Relationship
| Relationship | Who is who | Example |
|---|---|---|
| 4.3.1 Bailer-Bailee | Customer bailer; bank bailee | Safe-deposit lockers; valuables held |
| 4.3.2 Trustee-Beneficiary | Bank trustee; customer beneficiary | Money held for a special purpose |
| 4.3.3 Agent-Principal | Bank agent; customer principal | Collections, payments on instruction |
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