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Overdrafts and RCF

Overdrafts are typically provided by the banks, allowing funds to be used as and when required, up to a specified limit. Overdrafts are on-demand facilities and can be withdrawn at any time. RCFs work in a similar way but are committed facilities and provide more certainty. The customer pays a commitment fee and is then allowed to draw down funds when they are needed, subject to some overall parameters.

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