Q.State whether the following statement is true or false:
NEFT stands for National Electric Fund Transfer.

The statement is False. The correct full form of NEFT is National Electronic Funds Transfer, not "National Electric Fund Transfer."

NEFT is one of the modern electronic banking services offered in India:

• NEFT = National Electronic Funds Transfer.
• It is an electronic, nation-wide payment system that allows an individual or firm to transfer funds from one bank account to another account maintained with any participating bank branch.
• Transfers are processed electronically, making the service convenient, safe and paperless. …

The odd one is RBI, because it is the central (regulatory) bank of the country, while the other three are specialised development banks.

Banking services in India are provided by different types of banks, each with a distinct role:

• NABARD (National Bank for Agriculture and Rural Development) — apex institution for agricultural and rural credit.
• SIDBI (Small Industries Development Bank of India) — apex institution for financing small-scale and micro industries.
• EXIM Bank (Export-Import Bank of India) — finances and promotes India's foreign trade. …

The statement is False — a Current Account is opened by businessmen, not by salaried persons.

Banks offer different types of deposit accounts to suit different needs. A Current Account is a running account designed for businessmen, traders, firms and companies who carry out a large number of transactions every day. It allows unlimited deposits and withdrawals, provides overdraft facility, but normally pays no interest.

…

The odd one out is RBI.

The banking structure in India includes different types of banks meant for different purposes.

• NABARD (National Bank for Agriculture and Rural Development) finances agriculture and rural development.
• SIDBI (Small Industries Development Bank of India) supports small-scale and micro industries.
• EXIM Bank (Export-Import Bank of India) promotes and finances India's foreign trade. …

The statement is False. Current accounts are meant for business persons and firms who transact frequently; salaried and ordinary individuals open savings accounts.

Banks offer different types of deposit accounts suited to different customers:

• Current Account — designed for businessmen, traders, companies and firms who deposit and withdraw money many times a day. It allows unlimited transactions and overdraft facility but usually pays no interest.
• Savings Account — designed for salaried persons, households and small savers to encourage saving. It pays a modest rate of interest and places some limits on withdrawals. …

The odd one out is exchange bank. The other three belong to the co-operative banking system, while an exchange bank is a type of commercial bank.

Banks can be classified by their nature and function:

• Primary credit co-operative society — the base-level unit of the co-operative banking structure that provides credit to its members.
• State co-operative bank — the apex (top) body of co-operative banking in a state.
• District co-operative bank — the middle tier linking the state bank with the primary societies. …

Overdraft facility is available for current account holders, not savings account holders.

An overdraft (OD) is a facility given by a bank that allows the account holder to withdraw money more than the balance available in the account, up to an agreed limit.

• This facility is provided mainly to businessmen and traders who have frequent and large transactions. …