Module: General Practice
Q5: Which of the following statements regarding the eligibility for opening savings bank accounts are correct?
1. A savings bank account can be opened for a Government Department or scheme only if it is explicitly listed in Schedule-I of the RBI’s Master Direction.
2. Private entities are prohibited from opening savings bank accounts for the purpose of implementing Government funding schemes.
3. All Government Departments are automatically eligible to open savings accounts without restriction.
2. Private entities are prohibited from opening savings bank accounts for the purpose of implementing Government funding schemes.
3. All Government Departments are automatically eligible to open savings accounts without restriction.
✅ Correct Answer: A
Eligibility is restricted; Government Departments can only open savings accounts if listed in Schedule-I. Consequently, private entities cannot open such accounts for Government schemes.
These restrictions on account types directly impact how Interest Rates on Deposits are applied to government funds vs. commercial funds.
These restrictions on account types directly impact how Interest Rates on Deposits are applied to government funds vs. commercial funds.