Under the guidelines historically issued by the BCSBI (and integrated into banking practices), which statement regarding the bank's duty to inform the customer about a Garnishee Order (GO) and the exercise of the Right of Set-off is most correct?

Question

Banking · BCSBI Codes and Customer Commitment

Under the guidelines historically issued by the BCSBI (and integrated into banking practices), which statement regarding the bank's duty to inform the customer about a Garnishee Order (GO) and the exercise of the Right of Set-off is most correct?

Verified Solution4 Options

Answer 1

The bank is mandated to inform the customer immediately upon receipt of the GO but is specifically prohibited by law from disclosing the details of the set-off as it is an internal accounting adjustment.

Answer 2

The bank must inform the customer about the GO and the exercise of the Right of Set-off on their savings account within a reasonable period after taking action, but the priority is to comply with the court order first.

Answer 3

The bank is under no obligation to inform the customer about either the GO or the Set-off until the court issues the Order Absolute for payment, as doing so might prejudice the Decree Holder's ability to recover the debt.

Answer 4

The bank is required to notify the customer about the GO within 24 hours of receipt, but the Right of Set-off only needs to be mentioned in the annual statement of account.

Under the guidelines historically issued by the BCSBI (and integrated into banking practices), which statement regarding the bank's duty to inform the customer about a Garnishee Order (GO) and the exercise of the Right of Set-off is most correct?

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Under the guidelines historically issued by the BCSBI (and integrated into banking practices), which statement regarding the bank's duty to inform the customer about a Garnishee Order (GO) and the exercise of the Right of Set-off is most correct?

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