Deposit Management

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MANAGEMENT OF DEPOSITS IN COMMERCIAL BANKS Before going in to details of Deposit management One must under stand the format of balance sheet THIRD SCHEDULE TO BANKING REGULATIONS ACT 1949 FORM A FORM OF BALANCE SHEET SCHEDULE AS ON 31/3/---- (Current year) AS ON 31/3/---- (Previous Year) CAPITAL & LIABILITIES Capital Reserves & Surplus Deposits Borrowings Other Liabilites & Provisions 1 2 3 4 5 Total ASSETS Cash & Balances with RBI Balances with banks and money at call and short notice Investments Advances Fixed Assets Other Assets 6 7 8 9 10 11 Total Contingent Liabilities,Bills for collections Introduction Deposits represent the most important source of…show more content…
The Government of India nationalized the major private sector banks in 1969 so that the deployment of bank- deposits for bank credit may be directeced or economic development as per the Government policies/ priorities Commercial banks are the creators of the largest element of money Supply viz. demand deposits and time deposits 1.3 TYPES OF DEPOSITS Introduction: Deposits of banks are classified into three categories: (1) Demand deposits that are repayable on customers' demand. These comprise the following:  Current account deposits  Savings bank deposits  Call deposits (ii) Term deposits that are repayable on maturity dates as agreed between the customers and the banker. These comprise the following:  Fixed deposits  Recurring deposits (iii) Hybrid deposits or flexi deposits, which combine features of demand and term deposits. Lately, these deposits have been introduced by some banks to satisfy customers' financial needs and convenience and are known by different names in different banks. Demand and time deposits of a bank constitute its demand and time liabilities that the bank reports every week (on every Friday) to the RBI. 1.3.1 Deposits Current Account – Current Account constitute a large portion of demand deposits of a bank. Current accounts can be opened by individuals,
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