Question

State with reasons whether the following statements are True or False.

Overdraft facility is granted to saving account holders.

• A. True
• B. False

Answer 1

The correct option is B False

Theoretically, overdraft facility is not granted to a savings bank account holder as the balance in such account is expected to be available at any given point in time. However, the trend in banking sector has undergone tremendous changes to include an overdraft facility in a savings bank. It depends on the discretion of a banker. The focus is more in retaining clients and outperforming the competitors. Hence, theoretically, it can be said that savings bank account holders do not qualify for an overdraft facility.