Deposit Management

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 funds for a bank.

Deposits are received from a large number of constituents, generally in small amounts.

Balance Sheet Disclosure

Deposits are required to be classified in the balance sheet under the following heads.

A. I. Demand Deposits

(i) From Banks (ii) From Others

II Savings Bank Deposits

III. Term Deposits
(i) From Banks
(ii) From Others

B. I. Deposits of branches in India

II. Deposits of branches outside India

STRUCTURE OF DISCUSSIONS

1.Objectives

1.2 Importance of Deposits

 1.2.1. For a bank

 1.2.2. For depositors

 1.2.3. For the economy

1.3. Types of Deposits

1.3.1.Demand Deposits

 Current Accounts

 Savings Bank Accounts

 Deposit at Call accounts

1.3.2. Term Deposits

 Fixed Deposits

 Recurring Deposits

1.3.3. Hybrid deposits or Flexi-Deposits

1.4. Operations in deposit accounts

1.5. Closing a deposit accounts

1.6. Let us sum up

1.1 OBJECTIVES:

Acceptance of money deposit (or deposit-taking) is a major function and a distinct feature of commercial banking.

This discussion will enable one:

 to appreciate the importance of