Question

Which account holder gets Overdraft facility?

Options

• Saving Bank account

• Current account

• Recurring deposit

• Fixed deposit account

Answer 1

Current account

Explanation:

An overdraft facility is a type of short-term credit arrangement offered largely to current account customers, who are often business owners, institutions, and corporate entities. It provides high operational liquidity by allowing account users to withdraw monies in excess of their real available balance up to a bank-set pre-approved limit, allowing them to effectively manage variable business cash flows.