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Question
State with Reasons whether the following statement is TRUE or FALSE.
Overdraft facility is given to saving account holders.
Options
True
False
Solution
Overdraft facility is given to saving account holders- False
Explanation:
Overdraft facility is given to current account holders. The term “overdraft facility” means a temporary arrangement in which a customer is allowed to withdraw an amount of money greater than the balance in his/her account. The excess amount can be withdrawn upto a certain limit subject to payment of interest in return.
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