Study the following case/situation and express your opinion.
Ms.Harshali has started a new business two years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amounts in her business account. At the same time, she used to pay various payments from this account only.
i) Identify the Type of account maintained by Ms. Harshali.
ii) Suggest anyone modern way of money transfer to Ms.Harshali.
iii) What kind of facility does she get on her bank account?
Solution:
The type of account maintained by Ms. Harshali is the current account.
NEFT stands for National Electronic Fund Transfer. Under this system, funds are transferred electronically from one branch to another branch or one bank to another bank in the country. The client has to give details of the NEFT code of branch and account number of a beneficiary to whom the money is to be transferred.
1. An overdraft facility is available for the current account.
2. For the current account, banks provide a statement of account every month.
