MANAGEMENT OF DEPOSITS
IN COMMERCIAL BANKS
Before going in to details of Pay in management
One must under stand the format of balance sheet
THIRD SCHEDULE TO BANKING REGULATIONS ACT 1949
FORM OF "BALANCE SHEET"
SCHEDULEAS IN 31/3/----
(Current year)AS ABOUT 31/3/----
CAPITAL & LIABILITIES
Reserves & Extra
Other Liabilites & Provisions
a couple of
Funds & Amounts with RBI
Balances with banks and money in call and short see
on the lookout for
Dependant Liabilities, Expenses for selections
Deposit represent the most important source of funds for a traditional bank.
Deposits will be received via a large number of constituents, generally in small amounts.
Balance Sheet Disclosure
Deposit are required to end up being classified inside the balance sheet underneath the following minds.
A. I actually. Demand Build up
(i) By Banks
(ii) From Other folks
II Savings Traditional bank Deposits
3. Term Deposits
(i) From Financial institutions
(ii) From Others
B. I actually. Deposits of branches in India
II. Debris of limbs outside India
STRUCTURE OF DISCUSSIONS
1 ) Objectives
1 ) 2 Significance of Deposits
пѓ1. installment payments on your 1 . For any bank
пѓ1. installment payments on your 2 . Intended for depositors
пѓ1. installment payments on your 3. To get the economy
1 . a few. Types of Deposits
1 . three or more. 1 . Demand Deposits
пѓSavings Bank Accounts
пѓDeposit at Call accounts
1 . 3. 2 . Term Deposits
1 ) 3. several. Hybrid deposit or Flexi-Deposits
1 . 4. Procedures in pay in accounts
1 . 5. Concluding a deposit accounts
1 ) 6. I want to sum up
1 . 1OBJECTIVES:
Acceptance of money deposit (or deposit-taking) can be described as major function and a distinct feature of commercial banking.
This conversation will enable one:
пѓto appreciate the importance of deposits to get the bank, their customers and the economy.
пѓto understand the various kinds of deposits, types of first deposit accounts and the main features,
пѓTo understand the prevalent principles and precautions linked to opening, shutting and working the pay in accounts
1 ) 2 . IMPORTANCE OF DEPOSITS
1 ) 2 . 1 . For a lender
Deposit taking means accepting money (notes/ coins) or their equivalents (such cheques, banker's drafts) to help keep in deposit accounts.
It is the most critical function of the commercial traditional bank since it allows a lender to accumulate money required for its other major function viz. lending to industry, control and business.
Deposits make up the bulk of a bank's total liabilities; the rest portion of the liabilities getting Owned Cash (capital and reserves), borrowings and procedures.
Thus, deposits represents the key source of cash for a bank's operations and determine how big is its balance sheet as well as their strength and market share.
The quantum of deposits of any bank and its particular market share in deposit business depend on the variety of factors, the following:
пѓ the financial soundness of the lender that generates confidence inside the public, to entrust all their deposits with the bank, guaranteed of the safety;
пѓthe number of divisions and other financial channels that provide deposit facilities/ service to buyers;
пѓthe range of deposit and also other products readily available;
пѓ the efficiency in product-delivery
пѓ the quality of customer service and'
пѓInterest rates presented on deposit as compared to their competitors/ different banks.
Deposit-taking and permitting its disengagement by cheque or otherwise would be the essential and unique top features of a bank.
A nonbanking finance company, insurance company or mutual fund cannot issue cheque publication of a unique to the depositors for pulling out funds occasionally; such organizations can only repay the consumers' deposits (term deposits) after their maturity. Similarly,...
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