Nowadays, considering the high financial turnovers all around the world, the existence of banks is very important. Banks are considered one of the economics organizations in the world responsible for the transfer of funds, receiving customers’ claims and dividends, paying customers’ debts, acceptance of deposit, retention of customers’ stocks and bonds and valuables, equipping and distributing credits, financial operations, buying and selling currencies, carrying out the duty mandates and guardianships for customers, and advocacy in trades.
Banks operate on clients’ checks and accounts. Checks issued in favor of customers are paid at the bank and checks deposited to accounts are collected at the bank. Furthermore, banks can pay clients funds through other ways such as automated teller machines ( ATMs ) as well.
As the main and most basic banking institution in Iran, the Central Bank, in addition to controlling the banking network and managing a stable monetary policy, is responsible for the following:
Issuing bank notes and adjusting the amount of money in circulation, retention of expensive metals such as gold and silver and state currencies, retention of legal and cash reserves of commercial banks, creating credit space for banks as merchants, settlement operations between banks, acting as cashier and financial representative for government banking operations, implementation of monetary policy and credit control. The Central Bank requires other banks to provide services and act according to the economy.
Banking Rules :
This law contains rules and regulations as follows :
- Bank account balance is the banking relationship between the bank and the account holder. When customers have financial credit, the bank is considered debtor and must pay the account balance to the customer.
- When customers have financial credit, the bank accepts to issue checks or transfer money to other people on behalf of the customer without having a mandate. The customer doesn’t need to pay any extra money to the bank.
- An agreement is made between the bank and the customer which allows the bank to collect the checks issued for the customer as their representative.
- Due to the credibility relationship between the bank and the customer, the bank holds the right to merge the customer’s accounts.
- The bank has the right to hold the customer’s checks, given that they are indebted towards the bank.
- Banks must be trustworthy and are not allowed to divulge details of deals made from the customer’s account unless the customer gives their consent. In that case, it becomes the bank’s public duty to divulge the details which has some profit and advantage for the bank as well. The bank will also benefit from the government’s support. Banks are not allowed to close clients’ accounts without a legal reason.
As can be seen, insurance and banking has extensive and complicated rules and regulations. Learning them in their variety can be very difficult or even impossible. It is better to consult certified experts in case any problems or issues arise. Our professional lawyers and advisors at Sarasa are ready to answer all your questions regarding insurance and banking.