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The Rights and Responsibilities of a Banker towards their Customers 2014 INTRODUCTION: Customer for a Bank: For a bank, a customer is a person who is utilizing one or more of the services provided by the bank. A customer is a person through whom the bank gets an opportunity to make an earning in return to the service they can provide the customer with. For Example: An individual who has a checking account with a bank or an individual who has a mortgage or a loan with the bank or an individual
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  The Rights and Responsibilities of a Banker towards their Customers 2014   1 INTRODUCTION: Customer for a Bank: For a bank, a customer is a person who is utilizing one or more of the services provided by the bank. A customer is a person through whom the bank gets an opportunity to make an earning in return to the service they can provide the customer with. For Example: An individual who has a checking account with a bank or an individual who has a mortgage or a loan with the bank or an individual who has a fixed deposit with the bank are all customers of the bank. A person cannot be referred to as a customer of a bank without holding an account with the bank. It is immaterial whether the account is opened in the name of a person in trust for another; the name on the bank’s record will be regarded as the customer.  A customer can be a person, a firm or any organization. Banker for a Customer:   A banker is responsible for establishing and maintaining positive customer relationships, planning and delivering effective sales strategies and monitoring the progress of new and existing financial products. Bankers may work as managers in high street branches providing operational support on a day-to-day basis, or in more specialized posts in corporate or commercial departments at area, regional or head offices.  The Rights and Responsibilities of a Banker towards their Customers 2014   2 A banker is a banking expert who gives clients financial advice on matters relating to loans, investments, securities and savings. Their financial advice not only helps clients to solve financial needs, but also increases their firm’s profits   Dr H.L Hart  , in the Law of Banking  defines a bank/banker as: “A person or company carrying on the business of receiving money and collecting drafts for customers subject to the obligation of honoring cheques drawn upon them from time to time by customers to the extent of the amount available on their current account.”     The Rights and Responsibilities of a Banker towards their Customers 2014   3 LITERATURE REVIEW Many studies have been conducted on this topic to examine the relationship between the banker and customer and to know the rights and responsibilities of both. I have extracted some useful knowledge from that studies or previous researches. These studies indicated that there are certain rights and responsibilities of both a banker and customer that should be undertaken to make their relationship strong and to create good will. Legal rights and duties under the Banker/Customer Relationship :  A banker-customer relationship is contractual in nature, imposing certain rights and duties on both parties. It is that of debtor and creditor, with a duty on the bank to comply with existing laws and regulatory directives. Flowing from this is an agency relationship between the bank and the customer giving rise to a duty of care; i.e. in addition to obeying the instructions of the customer (the principal), the bank (agent) must also use reasonable care and skill in carrying them out with as view to protect the customer and his money. A bank’s duty of care may arise in tort as well as in contract where it is proven that a bank has been negligent and has failed to carry out the instructions of a customer with reasonable skill and diligence. In particular instances, depending on the nature of the transaction, the bank/banker may owe a customer a higher duty of care than usual; i.e. a fiduciary duty. General Responsibilities of a Banker:   A banker has numerous general responsibilities which go along with their daily job duties. The banker is responsible for assessing the client’s financial standing and offering bank programs in accordance with that financial standing. The banker will review the finances of a client, introduce financial programs  The Rights and Responsibilities of a Banker towards their Customers 2014   4 which may be needed by the client and answer to their needs each step of the way. The banker is also an individual who is responsible for the smooth daily operation of the financial institution. This individual must ensure that they comply with institution rules and regulations as well as pertinent federal and state laws. Specific Duties of a Banker:   The overall duty of a banker is to help clients with their financial questions and needs. In order to do so, the banker must correspond with the client and determine what type of banking help they are looking for. The banker can meet with the bank patrons in person or speak with them over the phone. The banker will most likely have numerous meetings with the client to fulfill their desired requests. The banker must also review a client’s financial history and  current standing to determine if their desired financial needs can be met. The banker will also inform them the best way to meet their financial goals. A banker will have to deal with various types of financial transactions. One specific duty of the banker may entail arranging student loans for clients. Many financial institutions offer student loans as a way for clients to pay for their college education or that of their children. The banker will present the loans which they offer to students, review the individual’s credit and help the client with their student loan needs. The daily job duties of a banker will also entail keeping complete and accurate records of the financial institution’s transactions which they carry out on a daily basis. Items such as loan applications, bank statements and other accompanying documents must be reviewed and properly filed by the banker to ensure that they can easily be recalled should need be. A banker must also meet with the client’s business associates and representation to gather information related to the financial needs of the client.
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