Module: | KYC, NPAs, Advances & Investment Valuations
Q218: An "advance against own deposit" includes advances granted against Rupee/FCNR(B) term deposits standing in the name of which of the following?
1. The borrower (singly or jointly)
2. One of the partners of a partnership firm (where the advance is made to said firm)
3. The proprietor of a proprietary concern (where the advance is made to such concern)
4. A ward whose guardian is competent to borrow (where the advance is made to the guardian)
2. One of the partners of a partnership firm (where the advance is made to said firm)
3. The proprietor of a proprietary concern (where the advance is made to such concern)
4. A ward whose guardian is competent to borrow (where the advance is made to the guardian)
✅ Correct Answer: D
The definition of "Advance against own deposit" covers deposits standing in the name of the borrower, one of the partners of a firm (if advance is to the firm), the proprietor of a concern (if advance is to the concern), or a ward whose guardian is competent to borrow (if advance is to the guardian).