154 . Banking Law and Practice Loans and Advances 15.5 erage ulsation thus determin and the operative ean F export credit and against export incentives 0 commercial banks, financlal institutions and levy a commitmnent charge on unulilised portion of wn with effec from July 1, 1996. The Reserve Bank has ‘own guidelines to ensure credit discipline and levy a ‘commitment charge, Thus the commitment charge now depends upon the discretion of ‘individual banks. pocinere serra CR er ee peepee Pesala roms Sem ae ea ee olen pape Commitment Charge [Unerth cash red system banks presrbe te cash ered mts or the customer onan 2. Operate Coselence, Bank veo maa os our ie transactions ‘ofa customer. The repetitive documentation Is avotded. Weaknesses of the System Objectives, n to bring about discipline in availing bank finance by borrowers and (2) to facilitate better funds management by banks, The salient features of the directive given by the Reserve Bank to banks in this regard are as follows : all borrowers with working capital limits (fund based) of Rs. 1 erore and the Chore Commitee 2, OVERDRAFTS ‘When a current account holder 1s permitted by the banker to draw more than what stands to his credit, such an advance is called an overdraft. The banker may take some collateral