1.

What is overdraft? To whom do the banks give this facility? Or Explain the grounds under which over drafts are issued.

Answer»
  • Overdraft is a type of loan given by commercial banks to customers. This facility enables a customer to withdraw money over and above the balance in his account. 
  • Banks give this facility to individuals who have frequent transactions with the bank. 
  • Generally this facility is provided to those who maintain current deposits. Bank charges interest for the additional amount. 


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