NDTL (Net Demand and Time Liabilities) - Explained in Hindi - YouTube

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Namaskar, my name is Mukul

And you are welcome to the Asset Yogi

Friends have you ever wondered that the inflation rate keeps on increasing

That can also be controlled.

The government and RBI has some tools or measures

Through which inflation can be controlled. Now, what are these tools?

You may have read in the newspaper that the RBI has increased the repo rate

Or increased the cash reserve ratio or increased the

statutory liquidity ratio. So these are the measures through which

inflation can be controlled or if the inflation is less

So all these ratios or measures

can be decreased.

More money circulates in the economy by this.

And growth increases. So how is it done?

We will discuss this in this series.

I will explain all the terminology to you in this

And what is the effect of that?

For example cash reserve ratio

How is the calculation of the statutory liquidity ratio done?

Or what are repo rates and reverse repo rates?

What is the effect of increasing and decreasing it?

In this video, we are going to see what NDTL is?

So whenever we talk about the cash reserve ratio and

statutory liquidity ratio

Then these ratios are calculated on NDTL

NDTL is Net Demand And Time Liabilities

So what are the total liabilities of the bank?

We call that NDTL

Based on that, CRR and SLR is calculated

So in this video, we will see the calculation of NDTL

That what are liabilities come under

Net Demand and Time Liabilities

So please watch the video till the last

Because this is going to be very important

For the upcoming videos also

Let's go straight towards the blackboard

So to understand Net Demand and Time Liabilities

We will break this term

and understand what is liabilities?

What are the liabilities of any bank?

For that, we have to understand the business of the bank

There is a very simple way, the business of the bank is very simple

People make deposits of different types in that or companies make deposits

whether it is a government organization or private organization

There are different types of deposits whether current account deposits

Or savings account deposits or whether someone has made the FD

Or whatever different types of bank products are

Like the letter of credit and bank deposits. They also have some deposits and margins

The bank promises to give you back all these deposits with interest

Right?

And the bank takes this money from you

and gives the loan to others

or other organizations

whether they are private or government

So the loans that are given, obviously people have to give back the money

They will also pay some interest. So the loans that the bank has given

This money will be back. That's why all these loans

that the bank gives are the assets for the bank

Because this money will be back

In the form of cash

And it will be charged with the interest

The bank will get the cash in the future. You may remember I've told you the definition of assets

Any resource which gives you the cash flow in the future

It is an asset. The bank gives loans to the public or the companies

They are assets for the bank.

So what are the liabilities for the bank? All these deposits

Whether they are of companies or the organization

Or the people. These are the liabilities for the bank

Why are these liabilities? Because the bank has to give back the money

in any form and with that they have to give the interest also

So all these are the liabilities of the bank

Now we will understand what is demand and time liabilities

So if we talk about the demand liabilities of the bank

Demand liabilities are liabilities or the deposits

that the customer can ask for it on demand

He can ask for the money whenever he wants

If we talk about the examples

Then it is savings deposits

You can withdraw the money from your savings account whenever you want

Current deposits

You can also withdraw the money from your current account

There are demand drafts

Whatever date you give it on

They have to produce it on the same date.

There are more examples other than this like if the letter of credit

and bank guarantees have on-demand margins. Then this type of margins that the bank

has come in the demand liabilities. So these were the examples of demand liabilities

Now we will talk about the time liabilities. What are time liabilities?

The deposits that can be withdrawn by the customer at a specified time

This means if you make an FD

Like you have made an FD of 6 months

You can withdraw the money after 6 months

Or let's say 12 months, 1 year, or 2 year

If you have made it for 2 years then you can withdraw the money after 2 years

If you withdraw the money early

Assume your FD gets overdue

An overdue FD goes straight to the demand liabilities

Maybe you haven't withdrawn that money

But it is overdue, you can withdraw that money anytime you want

So the overdue FD goes to the demand liabilities

But the time-bound deposits

fixed deposits come in time liabilities

Similarly, in this way, there can be your cumulative or recurring deposit

which are time-bound

Cash certificates that are time-bound

come in time liabilities

Similarly, your cash certificates can also come

in on-demand liabilities

Depends on what type of cash certificates are

Other than this, gold deposits also come in the time liabilities

All these are examples of demand liabilities and time liabilities

There are other liabilities also. According to RBI, they are defined in

Other Demand and Time Liabilities

Like the interest. The accrued interest on the deposits come in

Other demand and time liabilities. We call it ODTL in the short form

Other than this, there can be some bills payable to the bank. There can be some unpaid

dividends. All these come in the Other Demand And Time Liabilities

So see, we have understood the liabilities that what are the liabilities of the bank

Then we understood the demand and time liabilities

Now we have to understand what is the meaning of net

We understood what the liabilities were for the bank. Demand liabilities, time liabilities

And other demand and time liabilities

So the bank has to pay for all these.

Other than this, sometimes bank deposits the money in another bank

So the bank will get the money back for those deposits

We have to subtract these deposits.

So if we talk about the formula then

The meaning of net is when we subtract these deposits from these liabilities

Then we will get net demand and time liabilities

So our formula is simple.

Demand liabilities + time liabilities + other demand and time liabilities - Deposits in other banks

So in whatever bank, this bank has deposited the money

We have to subtract that.

So this is the concept of NDTL

Which is used in the calculation of CRR and SLR

CRR as we talked, the cash reserve ratio

SLR is Statutory Liquidity Ratio

I will talk about this in the coming videos

And there are some more measures of this kind

Which is used by the RBI

To control the liquidity of the money

If the money should be released less or

more. So that inflation can be controlled

So all these things come under monetary policies

So in the coming videos, I will discuss CRR, SLR, repo rate, reverse repo rate

I will discuss these topics

So please watch that video of mine

So that's all in this video

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