The banker-customer relationship is fundamentally a contractual one, characterized as a debtor-creditor arrangement, where the bank acts as the debtor to the customer for funds deposited, and vice versa when advances are made. This relationship is governed by common law principles, adapted to Ghanaian context through statutes like the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), and influenced by English case law due to Ghana’s common law heritage. In practical terms, this relationship imposes mutual duties, but the query focuses on the customer’s duties. Below, I explain the relationship and then delineate the customer’s duties, supported by key decided cases.

The Banker-Customer Relationship

• Definition and Nature: The relationship begins when a bank opens an account for a person and accepts money as a deposit, making the individual a customer. As established in Joachimson v Swiss Bank Corporation (1921), the relationship is contractual, with the bank owing money to the customer on demand (for current accounts) and the customer having the right to draw cheques. In Ghana, this is reinforced by Act 930, which mandates banks to maintain customer accounts with integrity, aligning with Bank of Ghana (BoG) directives on customer protection and anti-money laundering.
• Key Features: It involves implied terms such as the bank’s duty of secrecy (from Tournier v National Provincial and Union Bank of England (1924), which outlines exceptions like legal compulsion or public duty), duty to honor cheques if funds are available, and duty to act with reasonable care. Conversely, the customer must exercise care in dealings to avoid facilitating fraud. In real-world Ghanaian banking, this relationship was tested during the 2017-2019 banking cleanup, where poor governance led to collapses like UT Bank, highlighting the need for robust contractual safeguards.
• Expansion of Scope: Cases like Woods v Martins Bank Ltd (1959) expanded who qualifies as a customer, holding that even without a formal account, if banking services (e.g., advice) are provided, the relationship exists. This is relevant in modern Ghanaian fintech integrations, where digital wallets under the Payment Systems and Services Act, 2019 (Act 987) may create similar ties.

Duties of the Customer in the Relationship

Customers have specific duties to ensure the smooth operation of the banking contract and to prevent losses. Breaches can lead to estoppel or liability. Key duties, illustrated by cases, include:

1. Duty to Exercise Care in Drawing Cheques: Customers must draw cheques in a manner that does not facilitate fraud or forgery. In London Joint Stock Bank Ltd v Macmillan and Arthur (1918), the House of Lords held that a customer who negligently draws a cheque (e.g., leaving spaces that allow alteration) cannot claim against the bank for honoring a forged instrument. In Ghanaian practice, this duty aligns with BoG’s directives on cheque truncation systems, where customers at banks like GCB Bank are advised to use secure cheque formats to mitigate risks. A practical example: During the 2022-2024 Domestic Debt Exchange Programme (DDEP), customers neglecting this duty in bond-related transactions could face disputes over altered instructions.
2. Duty to Inform the Bank of Known Forgeries: Once aware of forgeries on their account, customers must promptly notify the bank to prevent further losses. In Greenwood v Martins Bank Ltd (1933), the customer was estopped from claiming against the bank for forged cheques because he delayed reporting after discovering his wife’s forgeries. This estoppel principle protects banks from ongoing fraud. In Ghana, this is crucial in cyber fraud cases, as per the BoG’s Cyber and Information Security Directive 2020, where delayed reporting could void insurance claims or lead to shared liability.
3. Duty Not to Mislead the Bank: Customers must not provide misleading information or instructions. In Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964) (though primarily on negligent misstatement by banks), the inverse applies: customers implying false facts (e.g., in loan applications) breach the relationship. Ghanaian examples include misrepresentation in lending under Act 930, where during recapitalization efforts post-2019 cleanup (e.g., at Access Bank Ghana), false declarations led to loan defaults and legal actions.
4. Duty to Repay Overdrafts and Advances: As debtors in overdraft scenarios, customers must repay on demand, per Joachimson. Failure invokes recovery mechanisms under Ghana’s Borrowers and Lenders Act, 2008 (Act 773), with banks like Stanbic Bank Ghana using set-off rights.

In summary, the banker-customer relationship fosters trust and efficiency in Ghana’s banking sector, but customers’ duties ensure accountability. Non-compliance can result in banks invoking defenses like estoppel, as seen in cases above. For resilience post-events like the DDEP, banks emphasize customer education on these duties via compliance training, aligning with BoG’s sustainable banking principles for ethical practices.