Question

Overdraft facility are given to current deposit holders.

• A. True
• B. False

Answer 1

The correct option is A True

True.

Overdraft facility refers to a continuous withdrawing facility in which the bank allows the customer to withdraw amount more than what he holds to his credit, but only up to a certain extent. These kind of facilities are provided to current deposit holders mostly because such accounts are opened for business transaction purpose and any kind of problem related to bank balance might cause a huge loss for the business. So in order to prevent such uncertainties, this facility is availed by the current deposit holders.