Banking Law – Unit IV LLB Class Notes

Banker and customer Relationship

Definition of banker and customer

General relationship

Special relationship

Banker’s duty of secrecy, banker’s duty to honour cheques, banker’s lien, and banker’s right to set off

Appropriation of payments Garnishee order

Customer’s duties towards his banker

Opening of New Accounts

Special types of customers

Minor’s A/C, Joint A/C, Partnership A/C, Company’s A/C, Married women’s A/C, Trust A/C, Joint Hindu family A/C

Illiterate persons, lunatics, executors

Precautions required in case of administrators, clubs, societies and charitable institutions to open an account