This is a research on the right and responsibilities of banks to
their customers.The research sort to know the bank right right and
responsibilities to their customers which has bee in existence in banking
operation and has been felt by the people and to the extent, their objectives
has been achieved.
In carrying out this research the researcher made use of oral
interviews, questionnaire and library and the finding were rights and
responsibilities of banks to their customers, which has been felt through many
areas of their promotional activities such as loan advancement.
It has been find out that banks charges commission to their
customers, banks accept money from their customers, and banks a turn irregular
instrument to their customers, all his has been greatly achieved through banks
and customers relationship.
Therefore, it was this base that the researcher made the
conclusion that banking operation has been appreciated by the people and
customers objectives has been achieved greatly.
1.0 CHAPTER ONE
OF THE STUDY
OF THE PROBLEM
OF THE STUDY
OF THE STUDY
OF THE STUDY
2.0 CHAPTER TWO
2.1 LITERATURE REVIEW
2.2 CAUSES OF BANK FRAUD
2.3 CONTROL OF FRAUD
3.0 CHAPTER THREE
3.1 RESEARCH DESIGN OR METHODOLOGY
3.2 SOURCES OF DATA (SECONDARY ONLY)
3.3 LOCATION OD DATA
3.4 METHOD OF DATA COLLECTION
4.0 CHAPTER FOUR
4.1 SUMMARY OF FINDING
5.0 CHAPTER FIVE
5.1 RECOMMENDATION AND
OF THE STUDY
Banking operation in Nigeria has gone through very dramatic
changes within this decade. The bank has grown beyond optimistic expectations.
Over the period, the number of banks expanded five fold, the variety of banks
increased, banking operation were substantially deregulated, competition
increased and bank were forced to be more innovative and service oriented.
This has made the researcher to go in for the topic the rights and
responsibilities of banks to their customers. The banks right to their
customers are to charge commission to their customers for service render to
them, banks return irregular instrument like unpaid cheques, which are not
properly drawn, also banks return cheques exceeding authorized overdraft, this
are customers which want to make overdraft facilities but the customer did not
come with the duration and so banks will return the cheque exceeding the
And some of banks responsibilities to their customers are: to pay
cheques to their customers banks receive money from their customers, banks
gives reasonable notice before closing credit account of a customers. All this
has made baking operation to be well structure and service oriented. When banks
has much fund in their banks the right and responsibilities is fully achieved.
As a matter of fact between 1947-1952 a total of 22 banks were
registered by Nigeria according to the study concluded by the C.B.N. of Nigeria
but within four years because they cannot met up with their rights and
responsibilities they well all out of duties (Distress)
OF THE PROBLEM
A bank is s financial institution, which provide minimum banking
services and which is licensed as a bank by the federal government of Nigeria
as a financial institution. This banks are duely bound to posses their rights
and responsibilities to their customers but as a matter of fact, there are some
with standing problems which comes across the banking operation, some of which
Lack of fund when customers or banks balance or overdraft is not
sufficient to cover his cheques the bank is not liable to pay the customers
Customers Death: The death of a customer cancels all mandates and
authorities relating to his account, the banker may receive in express or
constructive notice of his customer’s death and in either case, no further
cheques must be honored.
Bankrupty of customers where notice of presentation of a bankrupty
petition against the customer has been received by the banker, cheques should
not be paid.
Forged signature: Banks to faced problem from customers who forged
signature to receive money from the bank, when the signature is not related or
look alike with the drawer signature, the banks disregard the cheque.
Irregularity in drawing of cheques demand during non-banking
hours-banks do faced a problem from their customers who make demand during non
existing hours of the day.
OF THE STUDY
The objectives that made the researcher to go into this topic.
The rights and responsibilities of a bank to their customers are
Banks right to their customers
i) To charge a reasonable commission for services
ii) Rights to return irregular instruments
ii) Right to return cheques exceeding authorized overdraft.
The researcher want to find out how banks charges commission to
To find out why banks return irregular instrument.
To find out why banks return cheques exceeding authorized
Banks responsibilities to their customers are:
i) To pay cheques
ii) Banks receive customer’s money
iii) Banks give reasonable notices before closing customers’
iv) Banks has the responsibility to keep the affaire of the
customer secret (Duty of secrecy).
The researcher want to find out the responsibility of a bank to
their customers. They are:
1. To find out how banks pay their cheques to their customer
2. To find out whether banks receive customer’s money
3. To find out whether banks give reasonable notice before closing
customer’s credit account.
4. To look for or how banks take care to their customers.
5. To find out whether banks keep the affair of their customer
secret that is the duty of secrecy.
In order to attain the following objectives, the researcher is
expected to employ or ask the following research question:
v How does
banks receive customers’ money.
v What is
irregular commission which banks charges to their customers
causes banks to close customers credit account
v Why banks
keep their customer affair secret.
OF THE STUDY
According to Willy Nnamani research arises when there are problem
to solve, preculiarities or puzzles about phenomena or the question of giving
meaning to them. There are many reasons for the study of banks rights and
responsibilities to their customer which both banks, customers and country as a
whole (communities, individual) has benefited from this study they are:
The study will serve as a means to tackle the problem of lack of
fund in banking operation and as a matter of percentage of money or fund is kept
in bank to ensure the daily running of banking service to their customers.
Also, this study has enlighten the customers on how to make bank
for loan even on over draft bases or facilities and how customers can present
their collateral to the bank they wish for loan
Further more, this study will help banks to use instrument to
evaluate their customers rather than driving them by low interest rate.
Finally, through the researcher restricted the study right and
responsibilities of bank to their customers by rediscounting facilities for
stabilization securities, holding will be valuable to bank for finding purpose,
subject to condition that the bank (CBN) may specify from time to time.
OF THE TERM:
What is a bank: This is an association of person or a financial
institution incorporated by federal republic of Nigeria that accept deposit and
render loans to their customers with the aim of making profit through interest
rate they changes to customers.
Institution: This is a body of person whether
incorporated or not who carry on the business of banking according to section 2
of the U.K bill of exchange Act 1882 state so.
Banker: this is a person who receive money on
current or deposit account collect the proceeds of cheques and pays cheques drawn
Business: This is a business of receiving from
the public on current account money which is to be repayable on demand by
cheques and making advances to customers.
is a person who makes an offer and it is accepted by the organization. The
person becomes a customer to the organization, offer must be made and
acceptance must be granted.
Who is a bank customer? This question is difficult to answer
because there is no statutory definition of who a banks customers is but going
by the dictionary definition or the word customer it can notes the relationship
existing between one person(s) and another as a result of continuous dealing.
BANK AND CUSTOMER RELATIONSHIP: This is when person (s), firm,
company or society etc makes an offer to becomes a customer, which the bank
duly accepts, it can thus be seen that the element of offer acceptance (which
is the cardinal issue in the law of contract comes into play in the banker
RIGHT: This are duties obligation which the
bank has an authority to operate or does without taken permission, failure or
going against the bank obligation eg charging of commission, duty of secrecy,
duty of care etc.
IS RIGHT: This is what an individual firm or
an organization is doing without being necessarily taken permission before
are dryly activities one is oblarge to perform or a bank perform
RESPONSIBILITIES: This is what banks does daily ie day to
day running of the banking.
INSTITUTION: This is define under section 61 of the
BOFID 1991 as follows any individual body, association or incorporated other
than the banks licensed under this decree section 51 of this decree which
carries on the business money brokerage and whose principal object include
factoring project financing, equipment leasing e.t.c
BANKING INSTITUTION: This are financial institution which
are neither banks, insurance companies, nor stock broking firm but are
empowered by the C.B.N. to carry on the business activities as financial
TERMS AND CONDITIONS APPLY
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