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
CA Maninder Singh is a Chartered Accountant for the past 13 years and a teacher from the past 17 years. He teaches Science, Economics, Accounting and English at Teachoo
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