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प्रश्न
Explain the following term/concept:
Overdraft
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उत्तर
One of the main functions of commercial banks is to provide overdraft facilities. Current account holders are often granted an overdraft facility. Commercial banks offer this service to their customers, allowing them to withdraw funds that exceed their balance. The bank defines the maximum overdraft amount. Interest is imposed on the amount overdrawn.
संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
Borrowing/Accepting and lending money are considered as _______ functions of bank.
Justify the following statement:
The primary function of commercial banks include-Accepting deposits and leading funds?
State the utility Function of banks
State the Agency functions of Banks.
Which deposit allows unlimited withdrawals anytime by cheque and pays no interest?
In which deposit type does a person put a fixed amount every month for a set period?
In which loan type is interest charged only on the amount withdrawn, not the full sanctioned limit?
Who can use overdraft to withdraw more than their account balance up to a limit?
What does a bank do when discounting a bill of exchange?
What is the unique process where banks multiply money beyond original deposits through lending?
Which service involves banks collecting dividends or paying bills on behalf of customers for a fee?
What do banks use to enable safe and fast money transfer from one place to another?
What modern service lets customers access banking 24/7 without visiting a branch?
How do banks mainly earn profit from deposits and loans?
