This statement is false because,
1. Overdraft facility is not given to savings account holder but it is given to current account holders because of the following reasons.
2. Current account deposit is usually opened by businessmen, corporations, industrial enterprises, public bodies, trustees etc.
3. The account facilitates them to carry out their transactions with minimum cash at hand, as the deposits are withdrawable any time by the depositor by means of cheques.
4. Overdraft facilities and agency services are provided by the bank to the current account holders.
5. Very low interest or no interest is paid on the current account deposits. Banks may charge a nominal rate of interest for providing this facility.
