Banker Customer Relationship in different transactions

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Banker : The Banking Regulation Act 1949 (Section 5C) defines a banker as a person undertaking business of banking.

The basic function of banker  is accepting of money from the public by way of deposits and deploying the same by means of loans and investment.

Customer : A customer means a person who opens account which bank accepts with proper introduction. (OR)

A person or entry that maintains an account with the bank and / or has a business relationship with the bank.

Banker - Customer Relationship in different transactions

Transaction	Bank	Customer
Articles left by mistake	Trustee	Beneficiary
Assignment	Assignee	Assignee
Collection of cheque	Agent	Principal
Deposit in the bank	Debtor	Creditor
Loan from Bank	Creditor	Debtor
Hypothecation	Hypothecatee	Hypothecator
Locker	Lessor	Lessee
Money deposited but instructions not given for its disposal	Trustee	Beneficiary
Mortgage	Mortgage	Mortgage
Payee of draft	Debtor	Creditor
Safe custody	Bailee	Bailor
Sale / Purchaser of securities on behalf customer	Agent	Principal
Shares given for sale	Agent	Principal
Standing instruction	Agent	Principal

 

Money Laundering : Conversion of money which is illegally obtained and is the main operation of underground economy.

Prevention of Money Laundering Act (PMLA), 2002 : PMLA, 2002 is an Act of the Parliament of India enacted to prevent money - laundering and to provide for confiscation fo property derived from money - laundering.

The main objectives of this act are to prevent money - laundering as well as to provide for confiscation of property either derived from or involved in, money - laundering. 

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