cash credit bank account

This query is : Resolved

poonam (Querist)
Follow

13 January 2009 i want to know why we open cc A/C how its transaction is processed how can we apply whats its facility & whats its disadvantages

Prashant

Prashant (Expert)
Follow

14 January 2009 Cash credit Account
This account is the primary method in which Banks lend money against the security of commodities and debt. It runs like a current account except that the money that can be withdrawn from this account is not restricted to the amount deposited in the account. Instead, the account holder is permitted to withdraw a certain sum called "limit" or "credit facility" in excess of the amount deposited in the account.
Cash Credits are, in theory, payable on demand. These are, therefore, counter part of demand deposits of the Bank