New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    As per the IRACP norms given by RBI, which of the

    following correctly represents a Cash Credit or Overdraft account (CC/OD) as out of order ?  
    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.

    Practice Next

    Relevant for Exams: