Module: General Practice
Q4: How does a bank determine the detailed procedure for levying penalties on partial premature withdrawal of deposits?
✅ Correct Answer: B
Banks are permitted to levy penalties for premature withdrawal, including partial withdrawals.
The detailed procedure is determined by the banks themselves via their Board approved policy.
This flexibility allows banks to manage their liquidity risk while adhering to the broader framework of Interest Rates on Deposits.
The detailed procedure is determined by the banks themselves via their Board approved policy.
This flexibility allows banks to manage their liquidity risk while adhering to the broader framework of Interest Rates on Deposits.