In every aspect of life we feel the need of banks and banking. The profession in which lending, borrowing and other transaction of finance are done is commonly called as banking. Banking has gained their importance throughout the world. Banking can be said to be the backbone of economy of a country. The nation where the aspect of banking is in its developing form, gains its flourishing economical status. It can be said that a major portion of economy is dependent on the features and conditions of banking of that country.
There are certain laws of banking. Mainly, the laws in banking are between the customer and the banks. Among the major terms of banking include that a bank cannot terminate an account of its customers without showing proper reasons for ceasing it. To close any account of the customers the banks need to show adequate reasons. As it has been found that in a type of business dealings cheques need several days for their clearance.
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The banks also are aware of the privacy of the accounts of their customers. The laws of banking state while transactions are operating through the accounts of their customers the banks must be aware of their secrecy. No detail should be disclosed about the financial transaction of the customers through their accounts in those banks. But the banks can disclose details about the monetary dealings of the accounts of their customers only when the customers give their consents to their respective banks.
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As per banking laws the banks have enough right to take the possession of the amounts that are deposited in the accounts of their customers. They can own the amounts when the customers are under any loans from the banks. But this right is applicable to the banks as long as the banks find their customers indebted to them.
The banks are also entitled the rights of combining the accounts of their customers. As every amount of the banks are considered the feature of the credit relationship that are same. According to the laws of banking the balance in the accounts of banks are the media of financial relation between the customers and their banks. Thus, whenever any account of any customer face is position of credit the balance in the account of the customer is in under the possession of the bank. But when the customer overdraws the account the balance is owned by the customer.
To more on several aspects of banking browse the followings
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