Question

As per the terms specified, the interest rate applicable to an Overdraft (O

Q: Answer-As per the terms specified, the interest rate applicable to an Overdraft (OD) beyond WMA will be:

The pricing terms are differentiated WMA carries the Repo Rate, while OD is priced at two percentage points above the Repo Rate. Hence, when the account moves into overdraft beyond sanctioned WMA, the rate step-up to Repo 2 applies.

D beyond WMA will be:

A Repo Rate

B Repo Rate minus 1%

C Repo Rate plus 1%

D Repo Rate plus 2%

E Bank Rate

Practice Next

More Beepedia Questions

What was the theme this year for world child labour day?
Where are the headquarters of the Indian Energy Exchange ?
Recently Uma Pemmaraju died. She was ___?
What is the focus of the Yuva Sahakar scheme launched by the National Cooperative Development Corporation (NCDC)?
What literacy rate did Himachal Pradesh report when declaring itself fully literate?
Indian wicketkeeper-batter Kona Srikar Bharat (KS Bharat) announced retirement from international cricket after playing how many Test matches?
Consider the following statements: 1. 'Due process of Law' provides for judicial scrutiny against arbitrary action of executive only. 2. The procedure esta...
What is Zero Shadow Day, which Bengaluru experienced on 25 April?
What is TROPEX-23 recently conducted by The Indian Navy? I. A cultural festival held by the Indian Navy II. A training program for Navy personnel on board ...
According to the second advance estimates of national income,the Gross Value Added in agriculture and allied activities is projected to grow at ______ in F...

Relevant for Exams:

Hey! Ask a query

As per the terms specified, the interest rate applicable to an Overdraft (O

Detailed Solution

More Beepedia Questions

Relevant for Exams:

Hey! Ask a query

Please Register/Login