Question

The Interest charged by Banker to Customer on Overdrawn account is called Red ink interest.

• A. True
• B. False

Answer 1

The correct option is B False

Interest Charged by the banker to customer on overdrawn amount is called ' Interest on Overdraft' whereas red ink interest is applied in account current if the due date of a bill falls after the closing of the accounts. The red- ink interest is negative interest.