Which of the following is not a feature of a saving bank account?
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Interest is prescribed by RBI.
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Interest is paid on the maximum balance between 7th and last day of the month.
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Number of withdrawals is generally restricted.
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Account cannot be opened by organization whose purpose is profit.
Reveal answer
Fill a bubble to check yourself
B
Correct answer
Explanation
The main features of saving account in bank are as follows: -The main objective of saving account is to promote savings.
- There is no restriction on the number and amount of deposits. However, in India, mandatory PAN (Permanent Account Number) details are required to be furnished for doing cash transactions exceeding Rs. 50,000.
- Interest is prescribed by RBI. -Withdrawals are allowed subject to certain restrictions. -The money can be withdrawn either by cheque or withdrawal slip of the respective bank. -The rate of interest payable is very nominal on saving accounts. At present, it is between 4% and 6% p.a. in India. -Saving account is of continuing nature. There is no maximum period of holding. -A minimum amount has to be kept in saving account to keep it functioning.
Option 2 is the correct option as it does not state the truth.