Question

The 'demand liabilities' of a bank under the Act are liabilities which are payable when?

Q: Answer-The 'demand liabilities' of a bank under the Act are liabilities which are payable when?

Demand liabilities under the Banking Regulation Act are liabilities which are payable on demand, such as current account and savings account balances and demand deposits. They are contrasted with time liabilities, which are payable after a specified period. The classification is relevant for computing CRR and SLR. Accurate classification ensures banks maintain sufficient liquidity for amounts that depositors may withdraw at any time.