Understanding Demand Deposits and Their Examples

Описание: Demand deposits are funds kept in bank accounts that can be withdrawn at any time without prior notice. These deposits provide liquidity and convenience, making them a cornerstone of modern banking systems. Unlike fixed deposits, demand deposits do not have a fixed tenure and are widely used for day-to-day transactions.

Examples of demand deposits include savings accounts, current accounts, and checking accounts. These accounts allow individuals and businesses to access their money easily, whether for withdrawing cash, issuing cheques, or making digital payments.

Understanding demand deposits is vital for grasping core banking operations and their role in facilitating economic activities. For UPSC and IAS aspirants, concepts like demand deposits offer key insights into India's banking and financial systems.

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