An overdraft can only be granted to the holder of a

An overdraft can only be granted to the holder of a current account. A current account is a type of deposit account that is primarily designed for transactions such as deposits, withdrawals, and payments. It is also known as a checking account. Overdraft is a facility that allows the account holder to withdraw more money than they have in their account up to a certain limit agreed with the bank. Since overdraft is linked to the transactional nature of a current account, it cannot be granted to holders of fixed deposit, savings deposit, loan account, or any other type of deposit account, as they are not designed for transactions like a current account.