Relationship: Standing Instructions

PPB Banker-Customer Relationship Free JAIIB Capsule 35 views Updated 19 Sep 2026

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PPB · Banker-Customer Relationship

When a bank pays utility bills or insurance premiums on behalf of the customer via standing instructions, what is the relationship?

Tap to flip and reveal the answer

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

Ancillary services like payment of bills, taxes, and subscriptions are classic examples where the bank acts as an agent.

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Relationship: Standing Instructions — Full Text

When a bank pays utility bills or insurance premiums on behalf of the customer via standing instructions, what is the relationship?

Answer

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

Additional notes

Ancillary services like payment of bills, taxes, and subscriptions are classic examples where the bank acts as an agent.

Part of Principles & Practices of Banking · Banker-Customer Relationship · Last updated 19 Sep 2026

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