Rahul Shah
(Assistant Chartered Accountant)
(196 Points)
Replied 21 October 2016
According to Revised Schdule Vi Bank O/d is Considered as Current liability so in CARO Bank OD is Not to be considered according to my point of view.
Dharmesh
(Student)
(1025 Points)
Replied 21 October 2016
Hi,
According to my view, bank overdrafts represent short-term loans and should be classified as liabilities in the balance sheet. Reporting under CARO will come as its a short-term loan.
PARUL YADAV
(finance expet)
(93 Points)
Replied 17 June 2024
Overdraft loans are a flexible borrowing option that allows account holders to withdraw more money than they have in their accounts, up to an approved limit. Kotak Mahindra Bank offers an overdraft facility linked to various accounts, such as savings and current accounts. This facility can be especially useful for managing short-term liquidity needs. Customers can use the overdraft to cover unexpected expenses or cash flow gaps without the need for separate loan approval. Interest is charged only on the utilized amount, making it a cost-effective solution for many individuals and businesses.
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