Economics · Banking Sector
What does the term 'overdraft' signify in the banking sector?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The cancellation of a withdrawal request due to insufficient funds.
- 2A formal loan agreement where the principal amount cannot exceed the existing fixed deposit.
- 3Permission to withdraw an amount strictly less than what is deposited in the account.
- 4Permission granted to a customer to withdraw an amount exceeding the available balance in their account up to a specified limit.✓
Correct answer
Permission granted to a customer to withdraw an amount exceeding the available balance in their account up to a specified limit.
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