GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The RBI stipulates a healthy mix of CASA in the business figures of banks. What does it denote?
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Credit and Savings Aggregate
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Current Account and Savings Account
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Cost Appreciation and Selling Analysis
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Customer Analysis and Savings Pattern
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Explanation:
Detailed explanation-1: -Current and Savings Account, or CASA, deposits are cheaper money that banks raise from depositors. These deposits help a bank lower its cost of funds compared with the relatively expensive term deposits. Term deposits carry higher interest (5-7% currently) than current and savings account deposits (3-4%).
Detailed explanation-2: -A savings account is a deposit account which allows limited transactions, while a Current Account is meant for daily transactions.
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