Multiple choice

Which of the following is not correct in the context of term deposits?

  1. Term deposit receipts are non-transferable.

  2. Term deposit can be issued normally for a maximum period of 120 months.

  3. On term deposit the interest is normally compounded on a quarterly basis.

  4. Cash payment of a term deposit is allowed if the amount is Rs. 20000 or less.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For term deposits, the minimum amount accepted for fixed/short deposit is Rs. 1000 for a period of 15 days and above and minimum of Rs. 100 lac and above for a minimum period of 7 days.

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