The-definition.com

Definition

Overdraft on Current Account

An overdraft allows to borrow money for a short period of time through current account, with or without security. So, it is a credit facility for a current account customer.

A banker, on being satisfied as to the financial standing of his customer or after receiving proper securities, will allow the customer to overdraw his current account, in which case, the overdraft would be a sort of temporary advance by the banker.

Share it:  Cite

More from this Section

  • Demand-pull inflation
    Demand-pull inflation is the inflation that results when policymakers pursue policies ...
  • Asset value
    Asset value is the net market value of a corporation's assets on a per-share basis, not ...
  • Absolute Physical Life
    Absolute Physical Life is the period of use after which an asset has deteriorated to such ...
  • Bond discount
    Bond discount is the difference by which a bond's market price is lower than its face ...
  • Whole life insurance
    Whole life insurance is a life insurance that remains in effect for the insured’s entire ...