Relationship: Cheque Collection

PPB Banker-Customer Relationship Free JAIIB Capsule 93 views Updated 16 Sep 2026

Capsule FREE

PPB · Banker-Customer Relationship

If a customer deposits a cheque into their account for collection, what role does the bank play during the clearing process?

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The Bank acts as an Agent, and the Customer is the Principal.

According to Sec 182 of the Indian Contract Act. This relationship terminates upon death, insolvency, or lunacy of the customer.

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Relationship: Cheque Collection — Full Text

If a customer deposits a cheque into their account for collection, what role does the bank play during the clearing process?

Answer

The Bank acts as an Agent, and the Customer is the Principal.

Additional notes

According to Sec 182 of the Indian Contract Act. This relationship terminates upon death, insolvency, or lunacy of the customer.

Part of Principles & Practices of Banking · Banker-Customer Relationship · Last updated 16 Sep 2026

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