BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The liabilities which Bank have to pay on demand
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The liabilities which Bank have to pay after specific time period.
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The liabilities which Bank have to pay to the Reserve Bank of India
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The liabilities which Bank have to pay to the central government
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Detailed explanation-1: -Time liabilities refer to the liabilities which the commercial banks are liable to repay to the customers after an agreed period, and demand liabilities are customer deposits which are repayable on demand.
Detailed explanation-2: -Demand Liabilities of a bank are liabilities which are payable on demand whereas Time Liabilities of a bank are those which are payable otherwise than on demand. Let’s understand Demand Liabilities and Time Liabilities one by one.
Detailed explanation-3: -Loans are assets for the banks and deposits are liability for the bank.
Detailed explanation-4: -This is the RBI’s way of controlling the excess flow of money in the economy. The cash balance that is to be maintained by scheduled banks with the RBI should not be less than 4% of the total NDTL, which is the Net Demand and Time Liabilities.