BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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deposit represented by the receipt is assigned to the bank
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deposit receipt is pledged to the bank
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deposit receipt is hypothecated to the bank
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A lien is created on the deposit receipts in favour of the bank
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Detailed explanation-1: -If you secure a loan against your fixed deposit, the amount will be locked, and you will not have access to it. This inaccessible amount is security towards the borrowed loan. The bank authority will mark this specific FD amount as a lien amount restricting you from fund withdrawal.
Detailed explanation-2: -Lien is generally applied for recovery of any charges which are due in the account or in case a temporary credited is posted in your account against Fraud/Dispute raised in the account. All Savings Accounts.
Detailed explanation-3: -1. If the card was issued based on a lien on a fixed deposit, the lien will be removed once all card dues are cleared.
Detailed explanation-4: -“Unless there’s an underlying legal business transaction for the bank or it is an ‘interested party’, it will not oblige to mark a lien on deposit of its customers in favor of non-customers.