Types of Customers
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
Who is considered a 'customer' of a bank under Indian banking law?
A customer is a person who maintains an account with a bank or has a regular dealing relationship with the bank, even without a formal account, as established in the case of Great Western Railway Co. v. London and County Banking Co.
What is the legal status of a sole proprietorship as a bank customer?
It has no separate legal entity from the proprietor.
What is the minimum requirement for a person to be classified as a bank customer?
There is no minimum period requirement; even a single transaction can make someone a customer if there is an intention to establish a continuing relationship with the bank.
What account type is typically opened for a sole proprietor by a bank?
Current account in the proprietor's personal name.
How are minors treated as bank customers under Indian law?
Minors can open and operate savings bank accounts independently, but they cannot be held liable for any debt or overdraft; contracts with minors are void ab initio under the Indian Contract Act, 1872.
What is a 'non-individual' customer in banking terminology?
An entity like a company, firm, trust, or association.
At what age can a minor independently operate a bank account as per RBI guidelines?
RBI permits minors above 10 years of age to open and independently operate savings bank accounts with a simplified KYC process.
Which authority regulates the KYC norms for different types of bank customers in India?
Reserve Bank of India (RBI).
Video classes for this chapter
More chapters in Module A - General Banking Operations
Master the full PPB syllabus
Every chapter of Principles and Practices of Banking — videos, tests, notes and one-liner decks in one place.