The principal function of any commercial bank is to make a profit. When a customer does business with a bank they have both entered a legal binding contract in which the bank holds the customer’s funds and agrees to offer loans and other lending services, which is also known as money creation. Therefore, the relationship between the customer and the banker is vital. The relationship starts right from the moment an account is opened and entails an agreement of a contract right up the closure of the account. The nature of the relationship depends upon the state of the customer’s account.
Within the recent couple of month a business customer has been has been capturing attention from bank personnel’s in relation to his banking attitude and they are not very pleased, with how th
...e account is conducted. In conducting and interview with the client I would chose to explain each aspect of what is required both by the bank and customer and some recommendations for both now and the future.
A current account can be defined as “an active account which may be opened with a bank by a businessman or an organisation by making an initial deposit. This account may also be operated upon any number of times during a working day. This account never becomes time barred, because no interest is paid for credit balance in this account.
By accepting deposits on a current account, the banker under takes to honour his customer’s cheques so long as there is enough money to the credit of the customer. In case of a current account, there is no limit on the amount or number of
withdrawals.” (Somashekar, N.T, Banking, 2009)
Simply speaking the customer can withdraw up to the extent of their credit balance or to an overdraft limit sanctioned by the bank; they are to receive statements of accounts; pay charges as agreed whether it be interest or other banking fees (for transactions such as atm withdrawal, credit checks and telebanking services). These are merely some duties to be held out.
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