Deposit

Like sales to a manufacturing organization, deposit mobilizations are the key factor to any bank. It is only on the basis of the resources mobilized, that banks can plan their activities.

A bank is essentially an intermediary of short-item funds. It can carry out extensive leading operation only when it can efficiently channels the saving of the community. A good banker is one who efficiently mobilized the saving of the community as well as makes use of such saving by making it the growth and development of the nation’s economy. The main financial resources of any commercial bank and deposits bank will collect deposits without deposits a commercial bank cannot operates its business. Traditionally, the bankers used to accept three types of deposits, i.e. current, fixed and saving deposits. But because of the intense competition of resources, there are a variety of other innovations introduced by the bankers in the recent times, on the basis of interest payments, deposit can be classified into two types. They are:

A.    Interest bearing deposits:

Deposits in which banks are required to pay interest are known as interest bearing deposits. There are different types of interest bearing deposit according to their nature, time-period and purpose and their interest rates also vary. The call deposit and recurring or cumulative deposit.

B.    Noninterest bearing deposits:

Deposits in which banks do not pay interest are known as non interest bearing deposit. There are different types of non interest bearing deposits according to their purpose or demand deposits.

2.2              Current deposit:

A current deposit account is running account with accounts being paid into and drawn out of the account continuously. There accounts are also called demand deposits or demand liabilities since the banker is under an obligation to pay the run until the customer on the bank for the payment of deposits makes a demand. These accounts are generally opened by business houses, public institution, corporate bodies and other organization whose banking transactions are memorized and frequent.

            Demand deposits are the obligation of bank to pay a certain sum of money a specified individual (the depositors) on demand. The deposits as we know, is a claim against the bank by the depositor, a debt owned by the bank to the depositors. The claim is available to the depositors not chiefly because it can be converted into cash but because it can be transferred to others as a means of payments. The depositors keep their money in a bank mainly for the sake of convenience in transaction and settlement of debts. Demand deposits are, therefore almost as good as cash money. The depositors can converts a part or whole of the current deposit account into currency notes at any time.

            Among the various types of deposits, a current deposit is also one deposits facility provided by NBL. As defined earlier, sufficient cash reserves are required to the maintained in order to fulfill the demand of the depositors in time. Sources the bank has to maintain sufficient cash balance all the time, it provides no interest to the depositors. The need not pay interest rates as in the case of other deposits like fined deposit, saving deposit, recurring deposit etc. since current accounts are generally opened by business houses, public institution, corporate bodies and other organization, the customers of BNL

            Operating expenses- although there is no interest transaction in case of current deposit account, the incidental expenses involved in keeping the account for this purpose, the bank charges Rs. 200 to its account holder for cheque that does not meet the balance amount and charges Rs. 300

If he account is no be closed.

            Minimum balance is the minimum account of balance that the bank requires from the depositors while opening the account in NBL Janakpur branch, the account holder most maintain the minimum balance of Rs. 5000 in order to open the current deposit account.

            Overdraft facility-overdraft is the extra amount that the deposit draws on the bank, which is greater than his balance amount. NBL also provides overdraft facility to its good customers, in case of current deposit against securities as collateral. The person drawing an over draft required providing government guarantees and other necessary securities as collateral to prevent the bank from any kind of looses resulting thereafter.