RELATIONSHIP BETWEEN BANK AND CUSTOMER; TYPES OF NEGOTIABLE INSTRUMENTS
a) Advise on the relationship between a bank and its customer. Explain the duties and rights each has towards each other.
b) Name and discuss any three types of negotiable instruments
AUTHOR: KATALILO JOY
INTRODUCTION
This paper is aimed at discussing the relationship between a bank and its customer and the duties and rights each has towards each other. In discussing the relationship a scenario will be considered. The paper will further discuss three types of negotiable instruments. a)
Scenario
Ms Ednah worked as a civil servant throughout her life until she recently retired. She was given her benefit using a cheque from Vilimo Bank. She wants to know the relationship she has with the bank she intends to deposit the cheque with and whether herself and the bank have any rights and duties to each other.
A bank is a dealer in capital or money. The Banking and Financial Services Act defines a bank as a company conducting banking business. It goes on to describe banking business as to include the following:
a) The business of receiving deposits from the public including chequing account and current account deposits and the use of such deposits, either in whole or in part, for the account of and at the risk of the person carrying on the business, to make loans, advances or investments;
(b) Financial services; and
(c) Any custom, practice or activity prescribed by the Bank of Zambia as banking business
Banking is therefore an activity of accepting money from the public for the purpose of lending or investment and undertaking to repay the said money on demand or otherwise.
A customer to the bank is one who maintains an account with the bank without taking into consideration the duration and frequency of operation of his account.
The two definitions above indicate that there is a relationship between the bank and its customer and that is one whereby the bank offers services to the customer and
b) Name and discuss any three types of negotiable instruments
AUTHOR: KATALILO JOY
INTRODUCTION
This paper is aimed at discussing the relationship between a bank and its customer and the duties and rights each has towards each other. In discussing the relationship a scenario will be considered. The paper will further discuss three types of negotiable instruments. a)
Scenario
Ms Ednah worked as a civil servant throughout her life until she recently retired. She was given her benefit using a cheque from Vilimo Bank. She wants to know the relationship she has with the bank she intends to deposit the cheque with and whether herself and the bank have any rights and duties to each other.
A bank is a dealer in capital or money. The Banking and Financial Services Act defines a bank as a company conducting banking business. It goes on to describe banking business as to include the following:
a) The business of receiving deposits from the public including chequing account and current account deposits and the use of such deposits, either in whole or in part, for the account of and at the risk of the person carrying on the business, to make loans, advances or investments;
(b) Financial services; and
(c) Any custom, practice or activity prescribed by the Bank of Zambia as banking business
Banking is therefore an activity of accepting money from the public for the purpose of lending or investment and undertaking to repay the said money on demand or otherwise.
A customer to the bank is one who maintains an account with the bank without taking into consideration the duration and frequency of operation of his account.
The two definitions above indicate that there is a relationship between the bank and its customer and that is one whereby the bank offers services to the customer and