Q: Define Customer and Explain rights and duties of Customer ?

Ans: A customer is a person who has an account with a bank or has a relationship with the banker even though he has no account with the bank.

The question of whether a person is a customer of a bank is a matter of fact and an occasional or even regular encashment of a cheque, for example, is not sufficient to establish the relationship of banker and customer. The duration of the relationship is not of the essence. As a normal practice, banks make inquiries as to prospective customers to ensure that they are suitable persons with whom to enter into relations and the failure to do so is a factor in a subsequent claim against the bank for conversion of a cheque collected for the customer's account. Currently, the inquiries which a bank is required to undertake are very much determined by the money laundering regulations. 

So, the person doing the banking business is called a banker and the person who is connected with the bank, either depositing his money or taking a loan from the bank is called a bank customer.

Rights of a Customer

1. Right to fair treatment

According to this right, banks cannot discriminate between customers on the basis of gender, age, religion, caste, and physical ability while providing services. This does not mean that banks cannot offer schemes which are designed for a particular set of people. Banks have all the right to offers differential rates of interest or products to customers.

2. Right of transparent, fair and honest dealing

The contract between the banks and customers should be easily understood by the common man. It is the responsibility of the bank to make the customer understand interest rates, the risk involved and all other terms and conditions. Banks should not hide anything from the customer before the signing of the agreement. Even if there are any short comings, they should be communicated to the customer. The language in the contract should be simple and easily understood.

3. Right to suitability

You might have come across a lot of cases of mis-selling of financial products, especially life insurance policies. Usually, customers are forced to buy the product which offers the highest commission to an agent. As per this right, customers should be sold the product which is suitable to them. So, banks should always keep customers needs in mind, before selling any product.

4. Right to privacy

As per this law, the personal information provided by the customers to the bank, must be kept confidential. Bankers can disclose only such information, which is required by law or only after customers have given permission. Banks are not allowed to provide your details to telemarketing companies or for cross-selling.

5. Right to grievance redressal and compensation

Banks are responsible for all the products and services offered by them and customers have the right to easy and simple grievance redressal systems in case the bank fails to adhere to basic norms. Along with their own products, bankers are responsible for the products of third parties like insurance companies and fund houses. If the customer complaint is not resolved by the bank, customers can go to the banking ombudsman.

Duties of customers to banks

1. It is the duty of customers to present the cheque and other negotiable instruments only during the business hours of the bank.

2. In the case of any disagreement in the bank statement, customers should inform the bank.

3. Whenever photographs of customers are required by the bank, it should be submitted.

4. It is the duty of the customer to present the instrument of credit within the due time from the date of issue.

5. The cheque should be filled by customers very carefully.

6. If the cheque book is lost or stolen, it is the duty of the customers to inform the bank.

7. If the customer notices any forgery in the amount of the cheque, he/she should inform it to the bank immediately.

8. Customers should provide proper information in the Know Your Customer (KYC) form.

9. Customers should make the repayment of all the dues on time.

10. It is the duty of the customers to read the MITC ( Most Important Terms and Conditions)