Relationship: Uninstructed Money

PPB Banker-Customer Relationship Free JAIIB Capsule 34 views Updated 23 Sep 2026

Capsule FREE

PPB · Banker-Customer Relationship

If money is deposited by a customer but no specific instructions are given for its disposal, how does the bank hold these funds?

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The Bank holds it as a Trustee, and the Customer is the Beneficiary.

The bank cannot use these specific funds for its own lending until proper deposit instructions are provided.

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Relationship: Uninstructed Money — Full Text

If money is deposited by a customer but no specific instructions are given for its disposal, how does the bank hold these funds?

Answer

The Bank holds it as a Trustee, and the Customer is the Beneficiary.

Additional notes

The bank cannot use these specific funds for its own lending until proper deposit instructions are provided.

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

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