ABSTRACT
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.
TABLE OF CONTENT
1.0 CHAPTER ONE
1.1 BACKGROUND
OF THE STUDY
1.2 STATEMENT
OF THE PROBLEM
1.3 OBJECTIVES
OF THE STUDY
1.4 SIGNIFICANCE
OF THE STUDY
1.5 LIMITATION
OF THE STUDY
1.6 DEFINITION
OF TERMS
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
5.2 CONCLUSION
CHAPTER ONE
BACKGROUND 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
overdraft.
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)
STATEMENT 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
are:
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 cheques.
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.
OBJECTIVE 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 as follows:
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 their customers.
To find out why banks return irregular instrument.
To find out why banks return cheques exceeding authorized
overdraft.
Banks responsibilities to their customers are:
i) To pay cheques
ii) Banks receive customer’s money
iii) Banks give reasonable notices before closing
customers’ credit account.
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.
RESEARCH
QUESTIONS
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
v What
causes banks to close customers credit account
v Why
banks keep their customer affair secret.
SIGNIFICANT
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.
LIMITATION OF
THE STUDY
These are conditions beyond control of the researcher that
may place restrictions on the conclusion of the study and their application to
other condition. These restrictions are:
In a study of this nature, one would like to accumulate
data from many areas put in view of length of time allowed for this research,
such as wide range samples study was almost external difficult. The researcher
therefore, concentrated his fieldwork in Enugu
metropolis
The choice of Enugu
metropolis was base on the time factor allowed and upon practical consideration
including the fact that researcher knows almost every thing about Enugu.
Besides, there were many other problem that stemmed up
during the research work in which some of them are as follows:
FINANCIAL CONSTRAINT: As a student there was
not enough capital to spend in transport and fact finding and borrowing of
necessary literature that would have helped in writing of this research work.
MANAGEMENT CONSTRAINT: The respondents
especially the branch manager, did not co-operate as was expected. Also the
worker in the different department in banks visited were as well reluctant in
answering some of the question asked.
All this problem not with standing did not prevent the
continuation of the research work.
DEFINITION 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.
Banking 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.
A Banker: this is a person who receive money
on current or deposit account collect the proceeds of cheques and pays cheques
drawn by customers.
Banking 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.
Customer: This 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 customer relationship.
BANK 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.
WHAT IS RIGHT: This is what an individual
firm or an organization is doing without being necessarily taken permission
before doing it.
RESPONSIBILITIES: This are dryly activities
one is oblarge to perform or a bank perform
BANK RESPONSIBILITIES: This is what banks
does daily ie day to day running of the banking.
FINANCIAL 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
NON 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 intermediaries.
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