Banking Exam Question - What are the NRB Directives about Overdraft Limit for Interest & Principle Collection from Customers? Explain

Introduction - Overdraft Loan

An overdraft allows the individual to continue withdrawing money even if the account has no funds in it or not enough to cover the withdrawal. Basically, overdraft means that the bank allows customers to borrow a set amount of money. An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn".

• No exposure to interest of interest and interest will be made from the customer's account, which will expire the overdraft limit Credit will not be used to overdrawn credit card and interest in interest by expiring overdraft limit. 
• Due to lack of accounting overdrawn and accounting due to expense of interest and interest by spending customer's account, Including the amount of overdrowed debt amount in the unsolved loans, the bankruptcy amount will be included in a lower level category than those loans which are in the category. However, this system will not be considered to spend on the customer's account due to the cost of spending money on interest and interest.