Who is the Customer?
The word "customer" is neither explained in Indian statute nor in English statutes. The common outlook is that a customer is one who has his account with bank or who utilizes the services of the bank.
Features of legal association of banker and the customer
The special features of lawful association between the banker & the customer can be regarded as the rights and obligations of the banker.
The Rights and obligations of the banker are:
1. Obligation to collect drafts and cheques on behalf of customers.
2. Obligation to honor cheques of customers.
3. Obligation to maintain proper record of transactions with the customer.
4. Obligation not to reveal the state of account of customer to anyone else.
5. Obligation to act in accordance with the express standing instructions of customer.
6. Obligation to give logical notice to the customer, if the banker needs to close the account.
7. Right to assert incidental charges & interest as per the rules & regulations of bank as communicated to the customer at the time of opening the bank account.
8. Right of set off & right of appropriation.
9. Right of lien over any goods & securities bailed to him for a general balance of account.