Scribd
Upload
7 views4 pages

Understanding Banking Regulations and Relationships

The document discusses banking and banker-customer relationships under Indian law. It defines banking as accepting deposits of money from the public for the purpose of lending or investment, where deposits are repayable on demand or otherwise and withdrawable by cheque, draft, or order. It also lists various other transactions considered banking, such as discounting bills, collections, remittances, and safe deposit services. The document then outlines various types of relationships that can exist between banks and their customers, including debtor-creditor, pledger-pledgee, licensor-licensee, bailor-bailee, hypothecator-hypothecatee, trustee-beneficiary, agent-principal, and advisor-

Uploaded by

sahilkharwa712001
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
7 views4 pages

Understanding Banking Regulations and Relationships

The document discusses banking and banker-customer relationships under Indian law. It defines banking as accepting deposits of money from the public for the purpose of lending or investment, where deposits are repayable on demand or otherwise and withdrawable by cheque, draft, or order. It also lists various other transactions considered banking, such as discounting bills, collections, remittances, and safe deposit services. The document then outlines various types of relationships that can exist between banks and their customers, including debtor-creditor, pledger-pledgee, licensor-licensee, bailor-bailee, hypothecator-hypothecatee, trustee-beneficiary, agent-principal, and advisor-

Uploaded by

sahilkharwa712001
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Banking

• "Banking" -defined under the Banking Regulation Act 1949.


• According to Section 5(b) of the Banking Regulation Act, the term "Banking"
means accepting for the purpose of lending or investment of deposits of money
received from the public, repayable on demand or otherwise and withdrawable
by cheque, draft, order or otherwise.
• No firm, individual or group of individuals s all, for the purpose of carrying on
any business, use as part of its or his name any of the words "bank", "banking" or
"banking company".

1) Deposits only for lending & investment


2) Deposit should be from the public
3) Acceptance of deposit in the form of money
4) Deposits repayable on demand or otherwise

Other transactions under Section-6 of BR Act,1949 (Special Relationship)


• Discounting of bills
• Collection of cheques and bills
• Remittances
• Safe custody of articles
• Hiring safe deposit lockers
• Conducting foreign exchange transactions
• Conducting (Central/State) government transactions
• Issuing letters of credit and guarantees

BANKER CUSTOMER RELATIONSHIP


1) Relationship• of Debtor & Creditor
2) Relationship of Pledger and Pledgee
3) Relationship of Licensor and Licensee
4) Relationship of Bailor and Balee
5) Relationship of Hypothecator and Hypothecate
6) Relationship of Trustee and Beneficiary
7) Relationship of Agent and Principal
8) Relationship of Advisor and Client

1) Relationship of Debtor & Creditor

The relationship with the customer is reserved as soon as the customer account is
overdrawn

2) Lessor/Licensor (Bank) and Lessee/Licensee (Customer) Locker Facility


3) Bank- Bailee and Customer- Bailor ( Give Particular thing )
4) Pledger (Borrower) and Pledgee (Bank)

Collateral should be movable property and possession in hand of Bank (Indian


Contract Act)

5) Hypothecator (Customer) and Hypothecat (Bank)

Collateral should be movable property and possession in hand of Customer


(SARFAESI Act)

6) Mortgagor (Customer) and Mortgagee (Bank)

Collateral should be Immovable property and possession in hand of Customer


(Transfer of Property Act)

7) Indemnified Bank and Indeminier (Customer)

issue of duplicate demand draft, fixed deposit receipt etc.

8) Trustee and Beneficiary


9) Principle & Agent

Bank as a agent principle gave some certain instructions to do some payment or


anything on behalf of himself. Autopay

You might also like