'Although a depositor is a creditor of the bank, but he is not a secured creditor'. Elucidate with reference to banker-customer relationship.

Banker- Customer Relationship When a customer deposits money with his bank, the ownership of that money is transferred to bank who can use it as per its requirement without the permission of the customer, however it is obligatory on the part of a bank to honour the cheque issued by the customer if the cheque is in order and applicable funds are available in his account, the customer becomes tender (lender) and the bank becomes borrower. As such, the relationship is that of a Debtor and Creditor. Although a depositor is a creditor of the Bank, he is not a secured creditor. In case of liquidation or winding up of the Banks, depositors do not get preferential treatment in repayment of their deposits. It is for this reason that deposits Insurance Corporation was set up and scheme of deposit insurance was started (which is at present ₹ One lakh per customer per bank).