JAIIB · PPB

18 A PPB Duties & rights of a banker and customer rights

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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Q

What is the primary duty of a banker towards a customer regarding account information?

A

A banker has a duty of secrecy and must not disclose any information about a customer's account or transactions to any third party without the customer's consent or legal compulsion.

Q

What is the duty of a banker to provide passbook or statement to a customer?

A

Bank must provide passbook or statement on request periodically.

Q

Under what circumstances can a banker legally disclose a customer's account information without consent?

A

A banker can disclose customer information under compulsion of law (court order, RBI/statutory authority), in public interest, for the bank's own interest (to recover dues), or with the customer's express or implied consent.

Q

What is the right of a banker to refuse payment of a post-dated cheque presented before its date?

A

Banker can refuse payment as cheque is not yet legally valid.

Q

What is the duty of a banker to honour a customer's cheque?

A

A banker is legally obligated to honour a customer's cheque provided the account has sufficient funds, the cheque is properly drawn and presented within the validity period, and there is no legal bar such as a court attachment or garnishee order.

Q

What is the duty of a bank when it receives a cheque with materially altered amount?

A

Bank must refuse payment and return the cheque to presenter.

Q

What are the consequences for a bank if it wrongfully dishonours a cheque of a trader or merchant customer?

A

If a bank wrongfully dishonours a cheque of a trader, it is liable to pay damages for loss of reputation and credit standing, as such dishonour can seriously harm the business reputation of the trader.

Q

What is a customer's right to seek redressal under the Integrated Ombudsman Scheme 2021?

A

Customer can file complaint against bank for deficiency of service.

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