Law of Limitation: Deposits

PPB Banker-Customer Relationship Free JAIIB Capsule 58 views Updated 23 Sep 2026

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PPB · Banker-Customer Relationship

When does the law of limitation begin to run for a bank deposit (both demand and fixed deposits)?

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It begins only when a demand for repayment has been made by the customer.

Unlike typical debts where limitation starts immediately, deposit limitation starts strictly upon the customer's demand for withdrawal/repayment.

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Law of Limitation: Deposits — Full Text

When does the law of limitation begin to run for a bank deposit (both demand and fixed deposits)?

Answer

It begins only when a demand for repayment has been made by the customer.

Additional notes

Unlike typical debts where limitation starts immediately, deposit limitation starts strictly upon the customer's demand for withdrawal/repayment.

Part of Principles & Practices of Banking · Banker-Customer Relationship · Last updated 23 Sep 2026

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