Question

1.What duties does a customer have to his or her bank?

2. What do you think are conditions that must be met if the banker is to honour the customer’s cheques?
3. Can you describe any circumstances where it might be in the interst of the bnk to divulge information about the affairs of one of its customers?

Answer 1

1. Right to charge interest

Every bank in India has the right to charge interest on loans and advances sanctioned to customers. Interest is usually charged monthly, quarterly, semiannually, or annually.

2. Right to levy commission and service charges

Along with interest, banks also have the right to levy a commission and service charges for the services rendered. The service rendered by the bank might be SMS notification service, retail banking, and so on. Banks can also debit these charges from the customer's bank account.

3. Right of Lien

Another important right enjoyed by banks is the Right of Lien. Banks have the right to keep goods and securities belonging to the debtor as a security until the loan is repaid by the debtor. Banks have only the right to maintain the security of the debtor and not to sell

Answer 2

1. Right to charge interest

Every bank in India has the right to charge interest on the loans and advances sanctioned to customers. Interest is usually charged monthly, quarterly, semiannually or annually.

2. Right to levy commission and service charges

Along with interest, banks also have the right to levy a commission and service charges for the services rendered. The service rendered by the bank might be SMS notification service, retail banking and so on. Banks can also debit these charges from the customer's bank account.

3. Right of Lien

Another important right enjoyed by banks is the Right of Lien. Banks have the right to keep goods and securities belonging to the debtor as a security, until the loan is repaid by the debtor. Banks have only the right to maintain the security of the debtor and not to sell