Question

State with Reasons whether the following statement is TRUE or FALSE.

Overdraft facility is given to saving account holders.

Options

• True 

• False 

Answer 1

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 The excess amount can be withdrawn upto a certain limit subject to payment of interest in return.