Message : |
banks benefit from current accounts as under:
a) current accounts are interest free
b) operational cost can easily be compensated since min. balance is very high and cheques leaves are charged for.
c) the money thus available will be used in call money market lendings.
there is no relationship with fee based income and current account. fee based income means business where there is no immediate outlay of funds. eg. guarantee, issuance of letter of credit, factoring etc.
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