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Correspondence with Banks — Secretarial Practice STD 11 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 11 Commerce / ArtsSecretarial PracticeCorrespondence with Banks4 Marks
Question
No interest is paid by the bank on the current account.
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Answer

  • The Current account is normally opened by businessmen, firms, or companies.
  • A current account is a running account and in practice it never becomes time-barred.
  • This account is opened with a minimum deposit.
  • There is no limit on the amount or number of withdrawals.
  • Interest is not payable on this account.
  • Overdraft facility is given only to current depositors after following the prescribed bank procedure.
  • Hence, interest is paid only in the case of recurring, fixed, and saving accounts and not in the case of the current account.
  • Thus, no interest is paid by the bank on the current account.

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