Advertisements
Advertisements
Question
What is meant by an overdraft facility given by a commercial bank?
Answer in Brief
Solution
- An overdraft allows a current account customer to withdraw more than their credit balance up to a specific limit.
- Overdrafts are temporary and come with interest charges.
- Commercial banks offer overdraft facilities based on asset security or the account holder's personal security.
shaalaa.com
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Any ‘five types’ of banks.
Reserve Bank of India cannot accept deposits from public.
Select the proper option from the options given below and rewrite the sentences:
In E-business, payments have to be made ______
Distinguish between the following:
Current account & Recurring deposit account
Choose the Correct Answer.
Which bank is not an Industrial Bank?
Public Banks are the banks which are ______.
______ is the apex institution of the country's monetary and banking structure where as ______ is one of the organs of the money market.
Central bank is owned by the ____ while commercial bank is owned by ______.
Name the central bank of our country.
______ is a Banker's Bank.
