Understanding Demand and Time liabilities

Sl. No.	Demand liabilities	Time liabilities
1	Demand Liabilities of a bank are liabilities which are payable on demand	Time Liabilities of a bank are those which are payable otherwise than on demand
2	These include Current deposits,  Demand liabilities portion of savings bank deposits, Margins held against letters of credit/guarantees,  Balances in overdue fixed deposits,  Cash certificates and cumulative/recurring deposits,  Outstanding Telegraphic Transfers (TTs),  Mail Transfers (MTs),   Demand Drafts (DDs),  Unclaimed deposits,  Credit balances in the Cash Credit account and  Deposits held as security for advances which are payable on demand.   Money at Call and Short Notice from outside the Banking System should be shown against liability to others.	These include  fixed deposits,  cash certificates,   cumulative and recurring deposits,   time liabilities portion of savings bank deposits,   staff security deposits,   margin held against letters of credit, if not payable on demand,   deposits held as securities for advances which are not payable on demand and Gold deposits.

*The average of the minimum balances maintained in each of the month during the half year period shall be treated by the bank as the amount representing the "time liability” portion of the savings bank deposits.

Prudential norms for Income recognition and asset classification

In line with the international practices and as per the recommendations made by the Committee on the Financial System (Chairman Shri M. Narasimham), the Reserve Bank of India has introduced, in a phased manner, prudential norms for income recognition, asset classification and provisioning for the advances portfolio of the banks so as to move towards greater consistency and transparency in the published accounts.

Important tips to crack the Bank exams

Banking industry is one of the growing sectors in India in current era, and it is one of the sectors which is providing continuous employment from last four five years, and as per the predictions made by different veterans of the sector, more and more vacancies are going to come in the upcoming years.

Special Mention Accounts (SMAs) or Stressed A/C

Special Mention Accounts (SMAs) are those standard accounts which exhibit early warning signal and lie in between the Standard and Sub Standard (NPA) category. These accounts require special attention to reverse their downward movement i.e. slippage to NPA. As a corollary, any account classified as NPA should have appeared for some time in the SMA category unless any reason abrupt thereof (like fraud, malfeasance, etc.). Different SMA and their corresponding character are shown below.

Carrier in RRB verses Commercial banks

It is often seen most of the young generation who are trying to get a Probationary office job in a bank, prefer commercial banks to RRBs, but at the bottom, if we analyze the various aspects the following things that can be derived are as follows.