Practice free →
HomeSBI POBanking AwarenessDeposit Insurance › Can a bank set off its dues against an insured d…

Can a bank set off its dues against an insured deposit?

AOnly on audit
BYes, it may
CNo, it may not
DOnly on order
Answer & Solution
Correct answer: B. Yes, it may
1. The bank's dues are measured as on the cut off date. 2. Insurance applies to what is left after that. 3. So the bank may set off its dues first. _Source: Deposit Insurance and Credit Guarantee Corporation, Guide to Deposit Insurance and depositor FAQs_
Solve this in the app — SBI PO practice & 24k+ MCQs →
Related questions