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CBIC is working on biometric authentication of risky entities under GST as it looks to crack down on fraudsters who are misusing the PAN and Aadhaar of other people to obtain GST registration. CBIC is working on biometric authentication of risky entities under GST as it looks to crack down on fraudsters who are misusing the PAN and Aadhaar of other people to obtain GST registration, CBIC chief Vivek Johri said.

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od-limit

An overdraft (OD) limit is a financial facility that allows an account holder to withdraw more money than they have in their account up to a certain limit. The OD limit is essentially a credit limit that a bank provides to its customers. In India, an OD limit is offered by most banks to both individuals and businesses, and it is a widely used form of credit.

The OD limit is granted based on the customer’s creditworthiness, financial history, and income. Banks typically evaluate a customer’s creditworthiness by looking at their credit score, credit history, income, and other factors. Once a customer is approved for an OD limit, they can use it to withdraw money from their account even if they don’t have enough balance in it.

The OD limit is typically offered as a revolving credit facility, which means that the customer can keep borrowing money as long as they stay within the OD limit. The interest on the OD limit is charged only on the amount borrowed and for the duration that it is used. The interest rate on an OD limit varies depending on the bank, the customer’s creditworthiness, and other factors. The interest rate on an OD limit is typically higher than the interest rate on a regular loan.

The OD limit is a useful financial tool for businesses and individuals who need short-term credit to manage their cash flow. For example, a business may need an OD limit to pay its suppliers or to cover its expenses during a slow sales period. An individual may need an OD limit to cover unexpected expenses or to bridge the gap between their salary and their expenses.

In India, the OD limit is governed by the Reserve Bank of India (RBI), which is the central bank of the country. The RBI sets guidelines for banks on how to offer OD limits and how to manage them. The RBI also monitors the use of OD limits by banks and customers to ensure that they are being used responsibly.

The RBI has set certain limits on the amount of OD that can be offered by banks. For example, banks can offer an OD limit of up to Rs. 5 lakhs for individuals and up to Rs. 20 lakhs for businesses. These limits are subject to change based on the RBI’s guidelines and policies.

Banks in India typically require customers to provide collateral or security to get an OD limit. Collateral can be in the form of assets such as property, shares, or fixed deposits. Banks may also require a guarantor to provide a guarantee for the OD limit. The guarantor is responsible for paying back the OD limit if the customer defaults.

The OD limit is a useful financial tool, but it should be used with caution. Customers should only use the OD limit when they need it and should avoid borrowing more than they can afford to repay. Borrowing beyond the OD limit can lead to high-interest charges and can damage the customer’s credit score. Customers should also be aware of the fees and charges associated with the OD limit, such as processing fees, prepayment charges, and late payment fees.

In conclusion, the OD limit is a widely used financial facility in India that provides short-term credit to customers who need it. The OD limit is governed by the RBI, and it is subject to certain limits and regulations. While the OD limit can be a useful financial tool, customers should use it with caution and should avoid borrowing more than they can afford to repay.

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