Question : Which Bank has launched an overdraft (OD) facility, Insta FlexiCash, for its salaried account customers ?
(a) ICICI Bank
(b) HDFC Bank
(c) Axis Bank
(d) IDBI Bank
Answer : (a)
Related facts
- ICICI Bank has recently (June,2020) launched an overdraft (OD) facility, Insta FlexiCash, for its salaried account customers who are facing a cash crunch.
- It is designed to protect ICICI Bank Salary Account customers from missing their Equated Monthly Instalments (EMIs) or cheque bounces due to insufficient funds by providing short-term instant credit.
- Customers can easily avail of this facility by initiating their application online.
- Insta Flexicash is an end-to-end fully digital facility which can be availed using the bank’s Internet banking platform.
- According to the bank, the facility can be sanctioned immediately while customers can start using the approved OD limit within 48 hours.
- The interest payable on the OD is calculated on the basis of the actual amount availed by the customer, not on the full amount of the OD sanctioned.
Features
- The auto sweep-in facility automatically sweeps in funds from the OD account to the salary account to meet scheduled payments, when required.
- Customers get an instant approval for the OD facility with no documentation, using the Bank’s internet banking platform.
The Bank offers customers a credit limit worth up to three times their net salary. - Interest should be paid only on the actual OD amount utilised.
FlexiCash comes with a fixed rate of interest that is calculated on a daily reducing balance. - The interest is charged only on the amount you use and the period for which you use it. In case there is no usage of the funds, there will be no interest payable.
- Customers have the flexibility to clear the outstanding limit at their convenience. They are only required to pay the interest that is due every month.
- The facility offers customers the flexibility to repay the OD amount that they avail, as and when they choose to, without any foreclosure charges
- Customers enjoy the convenience of the automated process enhancement and renewal of OD limit every 12 months.
By – Pankaj Pandey