what is the relationship between bank and customer
Answers
Answer:
When a bank grants loan and other credit facilities to the customer, the relationship between the banker and customer is reversed, that is Customer is Debtor and Banker is Creditor. In such cases banker doesn't carry/ hold the money of the customer but it is the money of the bank in the hands of the customer.
Explanation:
There is a primary relationship between Banker and customer is debtor and Creditor. But who is what at a particular moment depends on the state of the customer's account. If the account shows a credit balance, the banker will be a debtor and the customer a creditor.
Banker & Customer There is no statutory definition of the term 'banker' and 'customer' BankerThe business of a banker in ordinaryconsists in receiving money from or anaccount of a customer and repayingthe same on demand. ... The Negotiable Instrument Act defines abanker as any person acting as a banker.