What do mean by demand deposits?
Taking into consideration the banking situation in India;
The basic function of any bank is to accept deposits from the public and lend the money so accepted as deposits as loans and invest the money in government securities for future use.
Deposits are accepted in two categories – demand deposits and term deposits
Demand deposits are payable on demand. In the case of demand deposits, deposits can be accepted at any time and the amount can also be withdrawn at any time. The following are termed as demand deposits – savings deposits and current deposits.
Savings deposits are opened for the purpose of saving the money and current deposits are opened for the purpose of business transactions. In the case of savings deposits and current deposits, the money can be deposited at any time during banking hours at the bank branches or at the deposit machines at ATM kiosks and similarly money can be withdrawn by means of cheques or through debit cards from automated teller machines
Taking into consideration the banking situation in India;
The basic function of any bank is to accept deposits from the public and lend the money so accepted as deposits as loans and invest the money in government securities for future use.
Deposits are accepted in two categories – demand deposits and term deposits
Demand deposits are payable on demand. In the case of demand deposits, deposits can be accepted at any time and the amount can also be withdrawn at any time. The following are termed as demand deposits – savings deposits and current deposits.
Savings deposits are opened for the purpose of saving the money and current deposits are opened for the purpose of business transactions. In the case of savings deposits and current deposits, the money can be deposited at any time during banking hours at the bank branches or at the deposit machines at ATM kiosks and similarly money can be withdrawn by means of cheques or through debit cards from automated teller machines
