Deposit Management Essay
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 OF BALANCE SHEET
SCHEDULE AS ON 31/3/----
(Current year) AS ON 31/3/----
CAPITAL & LIABILITIES
Reserves & Surplus
Other Liabilites & Provisions 1
Cash & Balances with RBI
Balances with banks and money at call and short notice
Contingent Liabilities,Bills for collections
Deposits represent the most important source of …show more content…
The main advantages which the customers get by keeping deposits with commercial banks are as follows:
Liquidity or easy withdrawals by cheques/ ATMs for meeting day-to-day expenses.. Bank deposit accounts (current and savings) are liquid financial assets; even term deposits can be repaid before their maturity at the discretion of the bank or loan can be obtained against security thereof.
Quick and convenient transferability of funds to third parties and to the depositor's other accounts by cheques /debit card/ clearing/ collection systems
Safety of funds.
Earning interest on savings and term deposits etc.
Record keeping via statements of accounts and pass books.
Availability of other facilities, e.g. safe deposit locker, credit/ debit/ A TM cards.
1.2.3. For the economy
Commercial banks mobilize a large portion of the savings of the community and deploy the same in loans and advances to the industry, trade, agriculture, infrastructure, services sector and other bankable economic activities, thereby helping the economy to develop.
This function of the banks is called 'financial intermediation'.
Banks intermediate between the depositors (savers of money) and businesses