Banker

The term ‘banker’ refers to a person or company carrying on the business of receiving moneys, and collecting drafts, for customers subject to the obligation of honouring cheques drawn upon them from time to time by the customers to the extent of the amounts available on their current accounts.

There are differences of opinion regarding the meaning of the term banker. We have discussed here some of the important ones.

1. Sheldon H.P.: “The function of receiving money from his customers and repaying it by honouring their cheques as and when required is the function above all other functions which distinguishes a banking business from any other kind of business.”

2. Sir John Paget: “No person or body corporate or otherwise can be a banker who does not take deposit accounts, take current accounts, issue and pay cheques and collect cheques crossed and uncrossed for his customers.”

3. G. Crowther: “A banker is a dealer in debt, his own and other people.”