Download - Deposits & Advances-Banker Customer
Deposits & Advances
amdprasad, ssim, hyderabad
Relationship
Deposits – Banker is a Debtor & The Depositor is
Creditor Advances – Banker is the Creditor & The Borrower
is the Debtor
Classification of Deposits
Demand / Short Term Deposits Time / Long Term Deposits
Savings Account Current Accounts Fixed Deposits Recurring Deposits
Savings Account It is useful for small money deposits (minimum
deposit is fixed ) No fixed term of deposit Day to Day operations Operations permitted through a cheque or
withdrawal form Passbook must accompany the withdrawal form ATM / Debit cards are allowed Interest will be paid as fixed by RBI Presently 3.5%pa Interest on the minimum balance between 10th
to Last working day of the month
Savings Account Minimum Balance to be maintained Penalty for not maintaining minimum
balance Transactions are restricted to 150 pa (Not
practiced) Cheque book charges are applicable Transfer of deposit is possible Joint Deposit is possible Joint with minor not allowed Special minor is permitted – no cheque
book Nomination is available
Current Account Useful for Business entities No fixed term of deposit Day to Day operations Operations permitted through cheques only ATM / Debit cards are allowed Minimum Balance to be maintained Penalty for not maintaining minimum balance Unlimited Transactions are allowed Cheque book charges are applicable Transfer of deposit is possible BCTT applicable for Rs. 1.00 lac and above cash
transaction Nomination is available
Term Deposits Fixed Term Fixed amount Interest is fixed as per the term of the deposit No operations Loan facility is available against lien on the
deposit Cumulative deposit / interest payment
deposits are available Premature cancellation is subject to penalty TDS is applicable Nomination is available Transfer of deposit is possible –with in the
bank only
Recurring Deposit Fixed Term Fixed monthly installment amount Interest is fixed as per the term of the deposit Accumulated installments and interest is payable on
maturity Deposit Passbook will be issued No operations Premature cancellation is subject to penalty Loan will be available against lien on deposit TDS is applicable Nomination is available Transfer of deposit is possible – within the bank only
Types of Customers Who is a customer? Not defined – Sec 131 of NI Act 1881 used a
word called “ Customer” Old View – By Sir John Paget – Duration
Theory – Great Western Railway vs London & County Bank
Modern Theory – Rejection of Duration theory – Ladbrok vs todd,, The Central Bank of India Ltd vs Gopinathan Nair (Kerala)
Relationship
General Relationship Debtor – Creditor (Foley Vs Hill) Special Features Must Demand Payment (Jammu and
Kashmir Bank Ltd Vs Chandra prakash) Only at the branch where the account
is kept Within Banking Hours
Accounts of Customers Preliminary Inquiries- Introduction
Indian Bank Vs Catholic Syrian Bank Ltd Liability of the Introducer Who can Introduce KYC Guidelines
Specimen Signature Forgery Facsimile
Mandate Principal & Agent Individual Account, Joint Account, Partnership, Companies , Minor Minor as agent Stamping Revocation / Cease / Termination Signature
Power of Attorney Special / General Donor / Donee Stamping Individual Account, Joint Account, Partnership, Companies, Minor Signature Power of attorney & Mandate Revocation / Cease / Termination
Accounts / Types of Customers Lunatic Drunkard Minor Married Women Mentally Challenged Insolvency Joint Account Partnership HUF (Joint Hindu Family) Joint Stock Companies Clubs Associations and Societies Trustees Executors and Administrators Death of the Customer
Banker is not a Debtor in Banker as Trustee – Safe Custody Banker as Agent – Bills / Cheques for collection – (Jai
Sports Ltd Vs New Bank of India Ltd (1948)) Bankers duty of secrecy
Where disclosure is under compulsion of law Where there is a duty to the public to disclose Where the interest of the bank requires disclosure Where the disclosure is made at the express or
implied consent of the customer Bankers’ book evidence act – 1881- Certified Copy
Bankers lien A lien is a right to retain the goods or securities belonging to the debtor until he discharges a debt due to
the retainer thereof Received in Ordinary course of business Set-off – Fixed deposit / Two similar accounts, Two separate
accounts Garnett Vs Mckervan Jindaram Vs Central Bank of India Ltd Greenhalgh and Sons Vs Union Bank of Manchester
Received in the ordinary course of biz (no special agreement) Krishna Kishore Kar Vs Uco Bank
Not exercisable if left inadvertently London and Globe Finance Corporation
If securities are left un-released Syndicate Bank Vs Vijay Kumar
Bankers Obligation in Honoring Cheques Sec -310f NI Act - Obligation Agreement for Overdraft , No need of
combining balances with other branches by the bank– Mohammed Hussain Vs Chartered Bank
Damages for wrongful dishonor (Business men & others) – Robin Vs Steward / Gibbons Vs Westminister Bank
Damages only to the drawer and not to the payee Meghaji Malsee ltd Vs PC Ommen
Effects uncleared Underwood Vs Barclays Bank
Garnishee Order Funds coming into the hands
subsequent to the garnishee not attached Nandikatta Anjana Vs Bandi Ramakrishna
A joint account is not attached Macdonald Vs Tacquash Gold Mines
Un-cleared items Jones Vs Coventy Un-cleared items no specific
agreement Fern Vs Bishop & Co ltd
Thank you