Justify the following statement :
No interest is paid by the bank on the current account.
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- The Current account is normally opened by businessmen, firms, or companies.
- A current account is a running account and in practice it never becomes timebarred.
- This account is opened with a minimum deposit.
- There is no limit on the amount or number of withdrawals.
- Interest is not payable on this account.
- Overdraft facility is given only to current depositors after following the prescribed bank procedure.
- Hence, interest is paid only in the case of recurring, fixed, and saving accounts and not in the case of the current account.
- Thus, no interest is paid by the bank on the current account.
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