Bankers-Customer Relationship: Quiz

Exp: Creditor- Debtor (Bank is a creditor and Customer is a Debtor)

When the bank lends money to the customer, the customer is the borrower and the bank is the lender. The relationship between the banker and the customer is therefore that of a creditor and a debtor.

Exp: Indemnity bond

Indemnity Bond Law and Legal Definition. An indemnity bond is a bond that is intended to reimburse the holder for any actual or claimed loss caused by the issuer’s conduct or another person’s conduct.

Exp: Any person, indulged in issue management business by making arrangements with respect to trade and subscription of securities or by playing the role of manager/consultant or by providing advisory services, is known as a merchant banker.

Exp: Hybrid deposits or flexi deposits which combine the features of demand and term deposits. These deposits are introduced in recent times by some banks to meet customers’ financial needs and convenience and are known by different names in different banks.

Exp: Bank cannot stop payment since it is a promissory note

Exp: To the Lessor:

Assured regular income: the lessor get lease rental by leasing an asset during the period of the lease which is an assured regular income.The benefit of tax: as ownership lies with the lessor, the tax benefit is enjoyed by the lessor by way of depreciation of respect of the leased asset.

To the lessee:

Tax benefits: a company is able to enjoy the tax advantage on lease payments as payments can be deducted as a business expense.

Cheaper: leasing is a source of financing which is cheaper than almost all sources of all the source of financing.

Exp: As per the section 148 of the Indian Contract Act, 1872, a bailment is a contract where one person delivers goods to another person for some purpose. The person delivering the goods is the Bailor and the person receiving the goods is the Bailee. After the accomplishment of the purpose, the Bailee needs to return these goods to the Bailor or dispose of them according to the directions of the Bailor. Let us now discuss the duties of bailee and bailor.

The finder of lost goods (Section 71 Indian Contract Act) should return any increase in goods/animal to the true owner. Under section 164 (Indian Contract Act), The finder has to take care of such goods as an ordinary prudent man.

Exp: Creditor and debtor

Exp: While opening this type of account a person has to agree to deposit a fixed amount once in a month for a certain period.

Exp: Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India. … DICGC insures all bank deposits, such as saving, fixed, current, Recurring deposit for up to the limit of Rs. 100,000 of each deposits in a bank.