Multiple choice

Bills co-acceptance facility is a

  1. fund-based facility

  2. nbon-fund based facility

  3. Both fund and non-fund based

  4. All of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The credit facilities given by the banks where actual bank funds are not involved are termed as 'non‑fund based facilities'. These facilities are divided in three broad categories as under

Letters of credit

Guarantees

Co‑acceptance of bills/deferred payment guarantees.