Decision Making In A Bank Essay

BANKING PROJECT

INTRODUCTION AND RESEARCH QUESTIONS:

When a banker opens an account of a customer in a bank, certain other consequences also arise which relate to the mutual rights and obligations of the parties. A banker generally has information related to the affairs of the customer and about his financial matters. On many occasions a banker is asked to divulge information relating to the affairs of the customer and about his financial matters.

On a few occasions such information may be required by police officers in the course of their investigation while other times it may be solicited by the court through an order requiring the bank to give information about the transactions or affairs of a particular customer/ customers. It is also

On the other hand, Atkin L.J. thought that the obligation did extend to information obtained from the sources than the customer’s account. There is not much conflict between these two opinions. However, Paget is of the view that if the view of Atkin L.J. is to be preferred, bankers would be advised to put a liberal construction on the limitation. Moreover, Paget states that where a bank fills the double role of banker and trustee, being successor as trustees should be in no worse position as regards the obtaining of information concerning the trust bank account and the production of documents than if a third party had been the banker. Tiger v. Barclays Bank Ltd., coming back to customers’ consent, we have seen that the consent to disclose may be express or implied and the court can infer implied consent in the circumstances of the case. In Sutherland’s case, the defendant bank dishonoured a cheque drawn by S on her account in favour of her dress-maker. There were not sufficient funds in the account; but the real reason for the dishonour was the bank’s knowledge that S was betting, since she was drawing cheques in favour of book-makers. The bank thought that the account was not of a type where overdrawing should be allowed. S telephoned the bank’s manager and made a grievance about the dishonour; after a while the husband took over the phone and was told that most of the cheques passing through his wife’s account were in favour of

The information should only be given to a fellow bank or to a person authorised by the customer to receive such information, in confidence and without prejudice. The information should be as general as possible so as to avoid any liability as to claim for defamation or for fraudulent misrepresentation. A banker and his subordinates are, in this respect, in the same position as any other member of the community.

In addition to the liability towards the customer on account of unjustifiable disclosure of his account, the banker may make himself liable to the party to whom the information is given, in order to compensate him for any loss which the latter may suffer on account of having relied upon information.

LIABILITY OF BANKS FOR BREACH OF DUTY TO MAINTAIN