Diligence Required of Banks—Relevant Jurisprudence
The banking
system is an indispensable institution in the modern world and plays a vital
role in the economic life of every civilized nation. Whether as mere passive
entities for the safekeeping and saving of money or as active instruments of
business and commerce, banks have become a ubiquitous presence among the
people, who have come to regard them with respect and even gratitude and, most
of all, confidence. Thus, even the humble wage-earner has not hesitated to
entrust his life's savings to the bank of his choice, knowing that they will be
safe in its custody and will even earn some interest for him. The ordinary
person, with equal faith, usually maintains a modest checking account for
security and convenience in the settling of his monthly bills and the payment
of ordinary expenses. As for business entities like the petitioner, the bank is
a trusted and active associate that can help in the running of their affairs,
not only in the form of loans when needed but more often in the conduct of
their day-to-day transactions like the issuance or encashment of checks.
In every case, the depositor expects the bank to treat his account with the utmost fidelity, whether such account consists only of a few hundred pesos or of millions. The bank must record every single transaction accurately, down to the last centavo, and as promptly as possible. This has to be done if the account is to reflect at any given time the amount of money the depositor can dispose of as he sees fit, confident that the bank will deliver it as and to whomever he directs. A blunder on the part of the bank, such as the dishonor of a check without good reason, can cause the depositor not a little embarrassment if not also financial loss and perhaps even civil and criminal litigation.
The point is
that as a business affected with public interest and because of the nature of
its functions, the bank is under obligation to treat the accounts of its
depositors with meticulous care, always having in mind the fiduciary nature of
their relationship
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