Question

A banker is generally obligated to maintain the secrecy of a customer's account. However, this obligation can be waived if:

• A. The customer withdraws all funds from the account
• B. The customer gives express consent
• C. The bank merges with another financial institution
• D. All of the above

Answer 1

Answer:

B. The customer gives express consent

Relationship between Banker And Customers 

1. General or Primary relationship 

2. Special relationship 

1. General or Primary relationship 

• Debtor-Creditor relationship 

• Agent and Principal

• Trustee and Beneficiary. 

• Bailor and Bailee 

2. Special relationship 

• Banker's obligation to honour his customers cheque 

• Banker's obligation to maintain the secrecy of the customers account 

1. Banker's obligation to honour his customers cheques

• Sufficient credit balance must be available 

• Funds must be properly applicable to the payment of the cheque 

• Cheque should be done in the proper form and it is complete  

• Cheque should be presented for payment within a reasonable time 

• There must be bar preventing the payment of cheque 

2. Bankers has obligation to maintain the secrecy of the customers account:

• Exception to banker's obligation to observe the Secrecy 

• When there is an express consent of the customer 

• When there is an implied consent the customer

• When be compelled by the laws of the country 

• A banker is under public duty to disclose 

• When bankers own interest requires disclosure 

• When an enquiry is received from a fellow banker