Which of the following is not included in the assets of a commercial bank in India?
Advances
Deposits
Investments
Money at call and short notice
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2019
A) Advances (Loans): When a bank provides a loan to a customer, the customer owes the bank money. This is an asset for the bank.
B) Deposits: When a customer deposits money into an account, the bank owes that money back to the customer. Therefore, deposits represent a liability for the bank, not an asset.
C) Investments: Banks invest in various instruments like government securities, bonds, and shares. These investments are assets owned by the bank.
D) Money at call and short notice: This refers to very short-term loans made by banks to other financial institutions. The amount lent is owed back to the lending bank, making it an asset.