Page 72 - DCOM208_BANKING_THEORY_AND_PRACTICE

Rupesh Roshan Singh, Lovely Professional University
Unit 5: Banker Customer Relationship

Unit 5: Banker Customer Relationship Notes

CONTENTS
Objectives
Introduction

5.1 Various Types of Relationship
5.2 KYC Norms
5.2.1 Objectives

5.3 Special Types of Accounts
5.3.1 Current Account
5.3.2 Savings Account
5.3.3 Recurring Account
5.3.4 Fixed Deposits

5.4 Mandate and Power of Attorney
5.4.1 Banke Lien
5.4.2 Right of Set off

5.4.3 Garnishee Order and Attachment Order
5.5 Summary
5.6 Keywords
5.7 Review Questions
5.8 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the various types of relationship

Elaborate KYC Norms
Explain the special types of accounts
Elaborate mandate & power of attorney
Describe Banker’s Lien, Right of set off, Garnishee and Attachment Order

Introduction

In the previous unit, we dealt with the process of credit creation. The unit also discussed about
the various limitations of credit creation. This unit will help you to discuss various types of
relationship and special types of accounts. The various section and sub section of this unit will
also summarize the concepts of KYC norms, Garnishee Order and Attachment Order. The Banking
Regulation Act, 1949 defines ‘Banking’ as accepting for the purpose of lending or investment of
deposits of money from the public, repayable on demand or otherwise and withdrawal by

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