under recurring deposit scheme, in case ..... installments are not received the account should prematurely be closed and balance paid to the account holder

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

under recurring deposit scheme, in case ____ installments are not received the account should prematurely be closed and balance paid to the account holder

A	9
B	12
C	6
D	3

Explanation:

Detailed explanation-1: -As per the rules, one withdrawal is permitted before the maturity period. This withdrawal amount is capped at a maximum of 50% of the deposits in the account. The withdrawal can be made only if the RD is operational for a minimum of 1 year, with 12 monthly deposits required in order to withdraw the sum.

Detailed explanation-2: -i) Penalty in case of delay in payment of instalment of RD of 5 years or less shall be Rs 1.50 for every Rs 100 per month. ii) Such penalty shall be Rs 2.00 for every Rs. 100 per month for the account on more than 5 years.

Detailed explanation-3: -Partial withdrawal of RD is not allowed by banks. While most banks do not allow partial withdrawal, some banks do offer an alternative in the form of a Loan or Overdraft facility which is made available by pledging the balance in the RD account as collateral.

Detailed explanation-4: -The tenure of an RD is account is usually between 6 months and 10 years. An interest is paid to over your funds and is usually compounded quarterly. At the time of maturity of an RD, you receive your investment along with the interests earned on them over the period of the scheme.

There is 1 question to complete.