A collecting banker is one who undertakes to collect the amount of a cheque for his customer from the paying banker.
DUTIES OF COLLECTING BANKER
- Exercise reasonable care and diligence in his collection work: As an agent, he should exercise reasonable care, diligence and skill in collection work. He should observe utmost care when presenting a cheque.
- Present the cheque for collection without any delay: If there is any delay in presenting the cheque for presentment by the banker, the customer may suffer losses due to the insolvency of the drawer or insufficiency of funds in the account of the drawee or insolvency of the banker himself. Hence the collecting banker has to present the cheque for collection without any delay.
- Notice to customer in case of dishonor of cheque: If the cheque he collects has been dishonoured, he should inform him customer without any delay.