What is NDTL? Components of NDTL. Formula to calculate NDTL. Requirement of NDTL.

2. BankLiability
Deposit Loans
Asset
The money which a bank lends to the borrowers is an
asset for the bank and the deposits in the bank are the
liabilities for the bank.

3. Net Demand and Time Liability shows the difference between the
sum of demand and time liability (deposits) of a bank (with the
public or other bank) and the deposits in the form of assets held by
other bank

4. NDTL
Demand
Liabilities
Time
Liabilities
Other demand
and time
liabilities

5. Demand liabilities include all those liabilities of a bank which are
payable on demand. Deposits that a customer can withdraw on
demand are called demand liabilities.
Demand liabilities of a bank include:
 Current deposits
 Saving deposits
 Demand drafts

6. Deposits that a customer only withdraws after a specified
time are time liabilities.
Time liabilities of a bank include:
Fixed deposits.
 Recurring deposits
Gold deposits.

7. These include al those miscellaneous liabilities which are not
covered in above two types of liabilities.
Such as :
 Interest accrued on deposit
Unpaid dividend
Bills payments

8. NDTL = (Demand Liability + Time Liability + Other
Demand and Time Liabilities )
Deposits in other Banks

9. NDTL is required to calculate CRR and SLR and other tools and
measures that helps in maintaining liquidity in the economy.
It also helps in calculation of inflation in an economy.