What is meant by the term DP and Sanctioned Limit in case of Advance account like CC/OD A/c. How it is to be calculated. wht are main differences between them..?
As per RBI Guidelines, Borrower need to retain a margin of 25% i.e. 75% of Cash purchases and Book Debts are eligible.
In my opinion this 75% amount is Drawing Power but phir Sanctioned Limit Kya hota hai. Is it linked with this 75% amount calculation..
pls explain with the help of a example...