Diff. between bank od a/c. and cash credit a/c.
This query is : Resolved
E. SATHISH
(Querist)
25 September 2012
Pls explain me about the Bank OD & Bank CC A/c.
CA Ayush Agarwal
(Expert)
25 September 2012
Both are banking facility, you can make use of it..od - you can get against your deposit and assets..cc - you can get only on your assets.depends upon your requirement and your holdings (securities) you can get it from the bankers.
CA Ayush Agarwal
(Expert)
25 September 2012
The main points of difference between an overdraft and cash credit are as follows.
(1) Overdraft is a temporary arrangement and is usually for a very short period. The cash credit on the other hand is a borrowing on a comparatively long term and on regular basis.
(2) Overdraft facilities are allowed in current account only. Cash credit needs opening a separate cash credit account.
(3) The rate of interest on overdraft is relatively lower but on cash credit it is higher.
(1) Overdraft is a temporary arrangement and is usually for a very short period. The cash credit on the other hand is a borrowing on a comparatively long term and on regular basis.
(2) Overdraft facilities are allowed in current account only. Cash credit needs opening a separate cash credit account.
(3) The rate of interest on overdraft is relatively lower but on cash credit it is higher.
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RAMESH KUMAR VERMA
(Expert)
25 September 2012
agreed with Ayush ji
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