5. RELATIONSHIP BETWEEN BANKER AND CUSTOMER The relationship between a customer and a banker depends on the activities, services or products provided by the bank to its customers or availed by the customers. The relationship between a banker and a customer is a transactional relationship. A bank’s business depends on the strong bondage with the customer. Trust plays an important role in building this strong bondage between a banker and a customer. When does a legal relationship begin? When two parties enter into negotiation, or a transaction, that are perceivable as a part of a contract intended by the parties to be concluded in future, a relationship of a legal nature is presumed to begin. Thus, where a person asks the banker to open an account for him, and is yet to lodge cash or a cheque for collection, a contractual relation is said to arise. The actual transactions in the account will only strengthen the relationship in terms of the benefits and obligations flowing from a contract. 5.1 ALLEGATIONS OF CHEATING AGAINST BANK A bank or banking company which is registered as a company, being a body corporate, could not have a mind of its own so as to form the mental element of cheating. A banking company functions through human agents. 5.2 BANK GURANTEES: Bank guarantees are guarantees given by supplier’s/contractor’s bank to the buyer/principal, promising to pay on demand and without demur, (these guarantees take place when there happens a contract between a bank and a customer) the sum of money mentioned in the bank guarantee , if it is invoked by the buyer/principal before the date of expiry of the bank guarantee mentioned in it. Bank guarantees could be: (a) towards earnest money deposit. (b) as security against perfo... ... middle of paper ... ... the benefit of another, or of another and the owner.’ It can be said that trustee is the holder of the property on behalf of a beneficiary. In case of trust, banker-cutomer relationship is a special contract. A person entrusts his valuable itmes with another person thinking that such items would be returned on demand, the relationship becomes of a trustee and trustier. When a customer keeps certain valuable items or deposits money for a specific performance, the banker here acts as a tustee. 6.4 (b) .Bailee-Bailor: In Sec.148 of Indian Contract Act, 1872- a “bailment” is the delivery of goods to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the “bailor”. The person to whom they are
Employees were using the cross-selling which is a concept of attempting to sell multiple products to consumers. This concept led to fraudulent actions, in fact employees were encouraged to order credit cards for pre-approved customers without their consent, and to use their own contact information when filling out requests to prevent customers from discovering the fraud. " The Wells Fargo scandal was far different. Instead of a select few doing bad things, the unethical behavior was widespread at the bank, with thousands of employees engaged in secretly creating new bank and credit-card accounts for customers without their knowledge, resulting in overdraft and other fees." (Kouchaki, 2016). According to the Los Angeles City Attorney, employees were opening and funding accounts without customers' permission or knowledge in order to "satisfy sales goals and earn financial rewards under the bank's incentive-compensation program." This means that the board members of the bank were aware of that it wasn't by the employees' own wills. In fact, they were pressured by aggressive goals and performance which led them to immoral behaviors. Facing this problem, Wells Fargo bank had to take some measures to avoid bankruptcy, losing customers, or loosing brand
The Commonwealth Bank is accused of breaching the money laundering laws. The Bank is one of the biggest and leading in the financial sector. The allegations tend to show that the bank’s compliance system failed to detect the alleged breaches. The allegations are serious because they have created a public relations issue that has drawn attention and interest of different stakeholders and publics. Some of the consequences evident as a result of this issue are that investors have dumped the bank’s shares leading to falling in price by about 4%. From a public relations perspective, this is an issue that has to be addressed immediately in order to protect or repair the bank’s reputation and image from damage. The discussion in the report shows that
During the past year Wells Fargo, a well-recognized bank of the United States, has been trying to clean its name and the mess it got itself into, when it was brought to the public that the bank was involved in generating fraudulent checking and savings accounts for its clients without their knowledge or their authorization. “The way it worked was that employees moved funds from customers' existing accounts into newly-created ones without their knowledge or consent”
The law governing bail in India is inadequate uncertain and above the ground. The working of the system is also unsatisfactory. The administration of criminal justice has recognized that a bail decision is a recurring one, which takes place through a number of distinct stages. It also recognizes that pre trial release by the police on bail is within the purview of the bail system. Further bail can be granted before the accused makes an appearance before the court or before the verdict of the trial is passed and even after he has been declared guilty and convicted in order to enable him to avail the appeal process.
A letter to the Bank showing that during the continuation of the agreement as substantiated in the letter of hypothecation, the Company will be solely liable for all types of damage, loss or deterioration of the securities that have been delivered to the Bank on account of fire, theft, robbery, dacoity or by any other cause whatsoever.
Bail is a post arrest remedy aimed at the release of the arrested suspect till the date of his trial. The mechanism of bail can be best understood by studying the components that practically go into every bail decision, namely: 1) the circumstances leading, to the arrest and detention of a person; 2) the factors considered for arriving at the bail decision like police record~ relating to the offence, its bailable or non-bailable nature, the furnishing of the requisite security by the accused, the need for surety and so on. 3) and lastly by interpreting the law relating to bail. I. CIRCUMSTANCES LEADING TO THE ARREST AND DETENTION OF A PERSON: Whenever a crime is reported or comes to the knowledge of the police, it rounds up a number of
High school seniors takes deep breaths and parade onto the stage. The beginning of a new chapter awaits as they make the journey from one point of the stage to the end. They reflect on what they have been taught in those many years of high school. The most terrifying fact while graduating high school is the next step: making it on their own. Because they have taken part in the appropriate classes, the students are certain that they have gained the correct knowledge to begin making their mark on the world. In high school, it is crucial to achieve the appropriate classes in order to feel ready to take on the world ahead as an adult. However, many students lack proper education. One key example is financial literacy. Financial literacy is the
Offshore banking is the action of having a bank account outside of the country of residence. Since its start, offshore banking has become a considerably lucrative business. Many of those who take part in offshore banking are looking for a secure location to place their income or seize the opportunity of having lower taxes. However, there are those who misuse the privilege of a foreign bank and use the business ventures for illegal actions rather than the original purpose of the dealings. Offshore banks seem to have an impartial acceptance of quite a few clients within the bank that create a lower standard of ethics in contrast to the ethics meant to be held—this includes those of a political position. Furthermore, this has the potential to be detrimental to the economy.
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
The topic offers a brief discussion on investment banking and its relationship with the research division. Investment banking acts as an intermediary between investors and corporate issuance firms during initial public offerings (IPO’s). It also performs various functions such as aiding firms in mergers and acquisitions. In addition, investment banking relies heavily on information regarding market intelligence. This necessitates the importance of a research department that performs the duty of carrying out research on the market conditions. However, there is a conflict of interest since investment banking relies on this research to capitalize their gains. As a result, the Global Research Analyst Settlement found it necessary to formalize separation of these two departments in order to prevent exchange of information (Morrison and Foerster 2).
The first advantage of interest income is interest income is more sustainable and high quality of earning to a bank from loan, share financing, hire purchase and others. The interest from a loan is a fixed interest agreed to charge by a bank to the borrower with a certain period of time. If the borrower is responsible, the repayment will be made in a due date with the actual amount. The hirer, the person who has option to buy goods in accordance is required to pay the monthly installment to the bank under the hire purchase agreement. This kind of payment is sustainable as the hirer has already signed the agreement with the bank. The goods will be obtained by bank if the hirer
The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
Customer Relationships is about building a relationship of trust and convenience. A customer wants the company they are working with to be intuitive. To know their needs before they do. They want to feel respected, they need to believe you are honest and have integrity. This relationship breeds comfort and familiarity and causes the consumer to continue to do business with your company. This relationship that is built develops a personal relationship, like a friendship and it is one that the consumer cannot get from the store down the road and it is that personal touch of sincerity, of knowing their needs, of servitude that will turn them into lifelong branded customers.
The Traditional Theory of Banking In this paper author review the traditional theory of banking and attempt to examine the theoretical reasons for why banks exist. As a financial intermediation, the natures of the banks are to provide financial services and conduct the intermediary functions in the whole financial system by accepting deposits and making loans. The question raised here are how they conduct these roles and why the borrowers and lenders do not come together without the banks for the saving of intermediation costs, why both of the two parties are ready to pay for their services and what’s the value added by the banks? The paper proceeds as follows. Section 2 offers a traditional view of banks and describes the nature of them.