Duties & Rights of a Banker and Customer Rights | PAPER II – PRINCIPLES & PRACTICES OF BANKING | MODULE A: GENERAL BANKING OPERATIONS
Banker Duties & Customer Rights Banker-Duties & Rights of a Banker and Customer Rights Author: Bank Theory 1. Duty of Secrecy & Confidentiality Bankers are obligated to maintain the confidentiality of their customer’s account details. Disclosure is only permitted under legal compulsion, with the customer’s consent, or for the bank’s interest in legal proceedings. 2. Duty of Reasonable Care Bankers must exercise reasonable care in handling customer accounts and transactions. Errors and negligence can make banks liable for damages. 3. Garnishee or Attachment Order A garnishee order is issued by a court to attach a debtor’s account held by a bank. Banks are required to freeze the specified funds once such an order is served. 4. Bank’s Rights Right of Lien: The right to retain goods or securities until dues are cleared. Right of Set-Off: Allows banks to combine and ...