The rights of a banker that the banker can enjoy are as follows:
1. Rights of general lien
One of the important rights of banker is the right of general lien. Lien means the right of the creditor to retain the goods or securities own by debtor until the debt due from him is repaid.
There are some exceptional cases in which the right of general lien is not applicable.
- Safe custody deposit.
- Documents deposited for special purpose.
- Security held in trust.
2. Right of the set off
A banker possess the right of set off which enables him to combine two accounts in the name of same customer and to adjust the debit balance in one account with the credit balance in the other.
The right of set off can be exercised subject to the fulfillment of the following conditions:
- The accounts must be in the same name in the same right.
- The right can be exercised in respects of debts due only not in respects of future debts or contingent debts.
- The amount of debts must be certain.
- The banker may exercise that right at his discretion.
3. Banker’s right of appropriation
If the customer has more than one account or he has taken more than one loan from the banker, the banker has the right to appropriation these loans by the accounts.
4. Right to charge interest, incidental charges
As a creditor, a banker has the implied right to charge interest on the loans granted to the customer.
In the same way incidental charges like scrvice charges, processing fees, appraisal charges, panel charges may be imposed by the banker to the customer.
Deposit are repayable on term and made by the customer but the period of limitation for the refund of bank deposit is three years with affect from the date a customer made a demand for his money.