Question

Study the following case/situation and express your opinion.

Ms. Nikisha has started a new business three years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amounts in her business account. At the same time, she used to pay various payments from this account only.

1. Identify the type of account maintained by Ms. Nikisha.
2. Suggest any one modern way of money transfer to Ms. Nikisha.
3. What kind of facility does she get on her bank account?

Answer 1

1. Ms. Nikisha's type of account is a current account.
2. NEFT is an abbreviation for National Electronic Funds Transfer. Funds are transferred electronically from one branch to another or from one bank to another in the country under this system. The client must provide information such as the branch's NEFT code and the account number of the beneficiary to whom the funds are to be transferred.
3. On their current account, an overdraft facility is available. Every month, banks provide a statement of account for the current account.