Multiple choice

For a loan against fixed deposit receipt

  1. stamp duty is very high

  2. stamp duty depends on the loan amount

  3. depositor/borrower affixes revenue stamp on the reverse of the deposit receipt

  4. there is no stamp involved
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The bank should obtain from the borrower the deposit receipt duly discharged by signing on the back of it across a revenue stamp and a memorandum of pledge authorising the bank to utilise the proceeds of the deposit on its maturity towards repayment of the loan.

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