Overdrafts
The overdraft facility may be either secured or clean (i.e., without security) and does not generally carry a fix repayment schedule. The most
common form of security for an overdraft arrangement is term deposit receipts. In such cases, care is taken to ensure that lien marking is done in the system and also on physical fixed deposit receipt (and not on fixed deposit advice). Overdrafts may also be granted against other securities like immovable properties, life insurance policies, shares, bonds, NSCs, Kisan Vikas Patra, Indira Vikas Patra, etc.