Explain the relation between the bank and its customers.
DSERT Class 10 Business Studies Ch. 1 Bank Transactions
Answers
The opening of an account with a bank and the banker’s acceptance for such an opening of account starts a ‘contractual relationship’ between the banker and the customer. This is the foundation on which mutual duties, liabilities, and privileges are built. When a customer deposits money with a bank, the customer is a lender and the bank becomes a borrower. Bankers act as agents for their customers for paying bills like insurance premium, electricity bill etc. and collect cheques, interests on investments, dividends on shares etc. on behalf of the customer. Bankers also act as custodians when the customers leave some valuables with the banker for safe keeping. They charge a nominal fee for these services. There are many other roles too for the banker based on the need of the customer.