Mr. White, a customer of your Branch approaches you for a loan facility against FDR for Tk. 50,000 of another Bank issued in his name. Will you accept it as security and give loan?
a) Yes, FDR is equivalent to money, loan may be given.
b) Yes, loan may be given provided he encashes the FDR and opens a savings account with us
c) No, FDR of another Bank is not a good security and invites a lot of problems. Normally in this case loan should not be given.
