Module: General Practice
Q1: Banks can accept interest-free deposits only in a …… .
✅ Correct Answer: B
Banks are permitted to accept interest-free deposits, but strictly only in current accounts.
According to the guidelines on Interest Rates on Deposits, savings accounts must be interest-bearing.
This distinction ensures that transactional accounts for businesses do not accrue costs for the bank in terms of interest payouts.
According to the guidelines on Interest Rates on Deposits, savings accounts must be interest-bearing.
This distinction ensures that transactional accounts for businesses do not accrue costs for the bank in terms of interest payouts.