Question
The CASA deposits of a bank are also referred to
as:Solution
The CASA deposits refer to deposits in the form of Current Account & Savings Account deposits. These are also known as demand deposits as these are payable to the depositor on demand i.e. the depositor can withdraw money from these deposits as and when he wants. Unlike demand deposits, time or term deposits or fixed deposits are made for a particular period of time before which withdrawal is restricted or may involve penalty on pre-mature withdrawal. Recurring deposit is also a type of term deposit in which the depositor deposits a fixed amount on a monthly basis into the recurring deposit account.
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