New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following is a non-fund-based credit

    facility provided by banks?
    A Cash Credit Correct Answer Incorrect Answer
    B Overdraft Correct Answer Incorrect Answer
    C Working Capital Term Loan Correct Answer Incorrect Answer
    D Letter of Credit Correct Answer Incorrect Answer
    E Export Packing Credit Correct Answer Incorrect Answer

    Solution

    Letters of Credit are non-fund-based facilities where banks provide payment guarantees but do not disburse funds unless invoked.

    Practice Next

    Relevant for Exams: