GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Net Demand & Tax Liabilities
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Net Demand & Time Liabilities
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New Demand & Tenure Liabilities
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National Deposits & Total Liquidity
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Detailed explanation-1: -NDTL refers to the total demand and time liabilities (deposits) of the public that are held by the banks with other banks.
Detailed explanation-2: -Bank’s NDTL = Demand and time liabilities (deposits) – deposits with other banks. Suppose a bank has deposited 5000 with the other bank and its total demand and time liabilities (including the other bank deposit) is 10, 000. Then the net demand and time liabilities will be 5, 000 (10, 000-5, 000).
Detailed explanation-3: -Demand and Time Liabilities (DTL) and The Net Demand and Time Liabilities (NDTL) are two terms openly pop up in connection with monetary review policy of RBI and liquidity in market. Banks are in the business of accepting deposits and deploying these funds by way of lending and thereby earning profit in the process.