Which of the following is not included in the assets of a commercial bank in India?
Detailed Explanation:
Answer: Option 2 — Deposits
Deposits are liabilities for a commercial bank, not assets. They represent money that customers have placed with the bank, which the bank is obligated to repay on demand or at a specified time. In contrast, advances (loans), investments, and money at call and short notice are all assets as they represent resources owned by the bank or money owed to it.
📝 Short Notes: Bank Balance Sheet - Assets vs Liabilities
| Assets (What Bank Owns) | Liabilities (What Bank Owes) |
|---|---|
| Cash: Currency in hand and with RBI | Deposits: Demand deposits, savings deposits, fixed deposits |
| Balances with RBI: Statutory reserves (CRR) | Borrowings: From RBI, other banks, and financial institutions |
| Balances with other banks: Inter-bank deposits | Other liabilities: Bills payable, provisions |
| Money at call and short notice: Short-term lending to other banks | Capital and Reserves: Share capital, reserves and surplus |
| Investments: Government securities, bonds, shares | |
| Advances/Loans: Loans to customers, overdrafts, cash credit | |
| Fixed Assets: Bank premises, equipment, furniture |
Question 7 of 15 Banking Structure in India
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