Relationship: Safe Custody

PPB Banker-Customer Relationship Free JAIIB Capsule 112 views Updated 22 Sep 2026

Capsule FREE

PPB · Banker-Customer Relationship

What is the legal relationship between the bank and customer when valuables are deposited for safe custody?

Tap to flip and reveal the answer

The Bank is the Bailee, and the Customer is the Bailor.

Governed by Sec 148 of the Indian Contract Act. The bank becomes the custodian and is liable for any loss caused due to its negligence.

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Relationship: Safe Custody — Full Text

What is the legal relationship between the bank and customer when valuables are deposited for safe custody?

Answer

The Bank is the Bailee, and the Customer is the Bailor.

Additional notes

Governed by Sec 148 of the Indian Contract Act. The bank becomes the custodian and is liable for any loss caused due to its negligence.

Part of Principles & Practices of Banking · Banker-Customer Relationship · Last updated 22 Sep 2026

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