Lecture 26 - Banker and customer. The role of a banker is one filled with multiple duties and responsibilities. There are different types of bankers and each one is unique in his own way. Some of these individuals work for large corporate conglomerates while others work for small town financial institutions.
Revise Lecture 26 Lecture 26 • Banker and Customer Banker and Customer The Banker • • • The role of a banker is one filled with multiple duties and responsibilities There are different types of bankers and each one is unique in his own way Some of these individuals work for large corporate conglomerates while others work for small town financial institutions Banker and Customer The Banker • • • Each banker has his own set agenda in his role as a banker A banker is an individual (or an institution) who advises his clients with regard to financial matter The duties concerning saving, loans, taxes, investment and securities are all within the job realm of a banker Banker and Customer • The Banker He will provide financial assistance to the client in accordance with their needs Banker and Customer • The Customer Banker and Customer The Customer • • In banking, a customer is someone who makes use of or receive the services of the bank The word customer historically derives ‘custom’ meaning habbit, so a customer was someone who frequented a particular shop, who made it a habbit to purchase goods there Banker and Customer Duties of a Customer All banks carry out the customer’s instructions in a business-like manner In return, the customer has special duties of cooperation and other duties of care A customer is bound to the following; Banker and Customer Duties of a Customer Communication of important information and changes Unambiguous information in orders and instructions Care in transmission of particular orders Banker and Customer • Duties of a Customer Use of forms Express notification of any special instruction Notification of time limits and dates Complaints to be made immediately Checking of confirmation of the bank Liability arising from neglect of duty Banker and Customer Withdrawal from deposit account Money can be withdrawn by using; Withdrawal form Cheque ATM card Lecture 27 • Types of Accounts Holders Types of Accounts Holders • • • Banks are custodians of public money Basically, the money is accepted as deposit for safe keeping A bank account is a monetary account with a banking institution recording the balance of money for a customer Types of Accounts Holders • • Opening an account is the most common and the first service of the banking sector There are different types of bank accounts in the Pakistan banking sector; Bank savings account Bank current account Bank term deposits account Types of Accounts Holders • • While opening an account, the banker should provide the customer with details of various types of accounts that he may open with the bank The customer can have his choice on what type of account would best suit him, based on his needs and requirements Types of Accounts Holders • The banker should, prior to opening an account, require documentation and information as prescribed by the Know Your Customer (KYC) guidelines issued by SBP and such other norms or procedures adopted by the bank Types of Accounts Holders • • The due diligence process that the banker should follow will involve providing documentation verifying the customer’s identity, address, and information on his occupation or business and source of funds A part of the due diligence process, the bank may also require an introduction from a person acceptable to the banker if they so deem necessary, and may need the Types of Accounts Holders • • The bank reserves the right, at its sole discretion, to open any account and, at such terms, as the bank may prescribe from time to time A bank has to deal with different types of account holders which are the following; Types of Accounts Holders Individual Joint account holders Illiterates Minors Married women Non-resident accounts Sole proprietorship Partnership firms Types of Accounts Holders Joint stock company 10 Clubs, Associations and Societies 11 Trusts 12 Government departments 13 Local authorities Types of Accounts Holders • Payment of Pension Types of Accounts Holders Payment of Pension • • Banks make pension payments on behalf of the government to the retired employees of Central and State Governments, Defence services, Railways and others All prnsion payments are subject to rules and procedures prescribed by the government, SBP and concerned departments / organizations from time to Types of Accounts Holders Payment of Pension • • • A pensioner can open an account with cheque book facility and also give nomination in his pension account Once the account is opened, no credit other than pension is permitted in the account Pension accounts are allowed 50% concession in minimum balance Types of Accounts Holders Payment of Pension • If the family pensioner is a widow, at the time of first payment of pension, a certificate to the effect that she has not remarried and an undertaking to the effect that if she re-married later, she will intimate the fact promptly to the pensionpaying branch is required Types of Accounts Holders Payment of Pension • • The pension usually credited by the branch to the pensioner’s saving or current account during the last four working days of the month Income tax at the prescribed rate is deducted from the pension amount, and net amount is payable to the pensioner’s account .. .Lecture 26 • Banker and Customer Banker and Customer The Banker • • • The role of a banker is one filled with multiple duties and responsibilities There are different types of bankers and. .. Banker and Customer Duties of a Customer Communication of important information and changes Unambiguous information in orders and instructions Care in transmission of particular orders Banker and. .. his transactions with the bank Banker and Customer • Banker’s right to charge interest and commission Banker and Customer Banker’s right to charge interest and commission • • The bank generates