Multiple choice

The limitation for recovery of the outstanding amount in the cash credit account is ______________ years from the last deposit made by the borrower.

  1. one

  2. four

  3. two

  4. five
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Limitation for suit or application for recovery of debts: The limitation for recovery of the outstanding amount in the cash credit account is three years from the last deposit made by the borrower in the account provided the pay in slip is available with the bank. The position is the same so far as overdraft account is concerned. In term loan account, the loan is payable in installments.

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