Banking · Bank Accounts and Advances
Under what primary condition can a Temporary Overdraft (TOD) be validly granted to a customer's account?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Automatically whenever the account balance falls below zero.
- 2Only when permitted under specific current account rules or explicitly approved through institutional policy guidelines and authority circulars.✓
- 3Upon receiving a standard verbal request from any regular walk-in account holder.
- 4Mandatorily if the customer already possesses a separate term loan with the bank.
Correct answer
Only when permitted under specific current account rules or explicitly approved through institutional policy guidelines and authority circulars.
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