Economics · Economy
Based on banking laws and customer rights regulations up to 2025, which of the following statements provides the most accurate interpretation of a banker's right of appropriation regarding a single running account with a fluctuating balance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 4 is incorrect because the RBI's Charter of Customer Rights acts only as voluntary recommendations and carries no mandatory enforcement standing.
- 2Statement 2 is incorrect because a bank can always set off a partner's personal account for a firm's debt due to the principle of mutual agency without exceptions.
- 3All four listed regulatory statements are legally correct, and Statement 1 accurately points out that Clayton's Rule is specifically for a single running account with a fluctuating balance.✓
- 4Statement 1 is incorrect because Clayton's Rule applies to all types of distinct loans collectively and not just single running accounts like cash credits.
Correct answer
All four listed regulatory statements are legally correct, and Statement 1 accurately points out that Clayton's Rule is specifically for a single running account with a fluctuating balance.
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