New IFSCA Grade A 2024: Decoding Phase 2 Paper 2 Syllabus!
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Question

  A Cash Credit or Overdraft account can be considered as out of order if:

A The outstanding balance in the CC/OD account remains continuously in excess of the sanctioned limit/drawing power for 90 days Correct Answer Incorrect Answer
B The outstanding balance in the CC/OD account is less than the sanctioned limit/drawing power but there are no credits continuously for 90 days, or the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing power but credits are not enough to cover the interest debited during the previous 90 days period Correct Answer Incorrect Answer
C the account is doubtful for 12 months Correct Answer Incorrect Answer
D Only a and b Correct Answer Incorrect Answer
E all of the above Correct Answer Incorrect Answer

Solution

A CC/OD account shall be treated as ‘out of order’ if: The outstanding balance in the CC/OD account remains continuously in excess of the sanctioned limit/drawing power for 90 days, or The outstanding balance in the CC/OD account is less than the sanctioned limit/drawing power but there are no credits continuously for 90 days, or the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing power but credits are not enough to cover the interest debited during the previous 90 days period

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