What is the relationship of the bank with the customer in case of a deposit account?

The depositors are creditors and the bank is the debtor. However, the relationship between the banker and customer is directly opposite when the bank lends money to its customer. The bank becomes the creditor and the customer becomes the debtor.

What is a deposit relationship with a bank?

As a condition of the Loans, the Borrower shall establish its primary operating account with the Lender and shall maintain such account with the Lender throughout the term of the Loan. Such deposits shall be held in demand deposits or money market accounts. …

What is the relationship between the banker and customer?

The primary relationship between a banker and his customer is a debtor and a creditor or vice versa.

When customer deposits money in a bank bank becomes the?

A. Explanation: If a customer deposits money with a bank then the banker becomes a borrower.

What do the banks do with the deposited money of their clients?

Banks use the money in deposit accounts to make loans to other people or businesses. In return, the bank receives interest payments on those loans from borrowers.

When a customer deposit Cheque with a bank for clearing the customer becomes a?

When credit facility is provided by the bank to a customer against the security of immovable property then the Bank becomes Mortgagee. Explanation: The collection of cheques on behalf of the customer, the bank becomes an agent.

What is a relationship checking account?

More than just a checking account, Relationship Checking is designed for the client who sees the value in building a relationship with their financial institution.

What is relationship banking and why is it important?

Relationship banking is strategy used by banks to offer a variety of different products, strengthen customer loyalty, and generate additional revenue. Small, mid-sized, and large money center banks all use relationship banking strategies.

What is the legal relationship between customer and banker when customer opens a savings bank account?

When a customer opens a bank account with the bank, he fills the form and other requisites compulsory for the same. When he deposits money in his bank account, he becomes a creditor to the bank. The bank becomes the debtor.

Who is a customer in banking?

The customer is one who has a bank account. “Customers are bank depositors, who entrust their money, banking facilities, for storage and fruiting, for which they receive interest and applicants or those who need temporary, some additional money for paying interest or commission” (Pîrvu, 2004, p.

What is a customer deposit?

A customer deposit is money from a customer to a company before the company earns it. Customer deposit accounting means that the funds will be credited. It follows the accounting principle; the deposit is a current liability that is debited and sales revenue credited.

Why are the deposits in the bank called deposits?

Answer: People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.