Chapter 3 Part 2 - Banking
Basic Concepts of a Commercial Bank
Different Functions of Commercial Bank
Understanding Balance sheet of a Commercial Bank
Procedure followed to Issue Currency
Different Transactions between Central Bank and Commercial Bank
Deposit Transaction between Government and Central Bank You are here
Understanding Assets and Liabilities of Central Bank
Important Ratios Used in Banking System
Currency Deposit Ratio - Meaning, Importance and Calculation
Reserve Deposit Ratio - Meaning, Importance and Calculation
Statutory Liquidity Ratio - Meaning, Importance and Calculation
Cash Reserve Ratio - Meaning, Importance and Calculation
What is Bank Rate or Repo Rate
How does Bank control Money Supply and Reserve Deposit Ratio in an Economy
Functions of Central Bank
Concept of Money Multiplier
What is Repo Rate and Reverse Repo Rate
Demonetisation
Chapter 3 Part 2 - Banking
Last updated at March 28, 2023 by Teachoo
In last page, we studied that
Commercial banks deposit their surplus funds with Central Bank
Sometimes
Government also deposit their surplus funds with Central Bank
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Different Deposits of Central Bank (RBI) Deposits of Commercial Bank With Central Bank Deposits of Government Bank With Central Bank Commercial banks deposit their surplus funds with Central Bank Government deposit their surplus funds with Commercial Bank This we have already studied This we will study now Note Both these deposits are Liabilities of Central Bank Deposits of Government with Central Bank Suppose Government earns Revenue of Rs 1000 Crore from tax and other sources Out of this, It spends Rs 900 Crore on welfare of public So it is left with Surplus of 100 Crore Now, Government deposits these surplus money with Central Bank (RBI) These are called Treasury Deposits Government Revenue Less Expenditure Surplus Treasury Deposits Central Bank Is this Liability or Assets of Central Bank? It is Liability as RBI has to pay back these deposits to Govt
