0
As you might already know, the main business for banks is accepting deposits and granting loans. The more the loans the banks disburse the more profit they make. Also, banks do not have a lot of their own money to give as loans. They depend on customer deposits to generate funds for granting loans to other customers. So a deposit mobilization scheme would encourage customers to deposit more cash with the bank and this money in turn will be used by the bank to disburse more loans and generate additional revenue for themselves. Since people living in rural locations don't use banking services much, they might have a significant amount of cash at home in safety vaults. So if banks can convince rural customers to deposit their money with them, they might mobilize a good amount.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is deposit mobilization?
Banks mobilize deposits by making finances and by investing in various financial markets. Basically deposit mobilization is related to the creation of credits. The banks would have special campaigns where they would interact with a lot of people and invite them to make deposits with their bank.
What is the function of a bank?
The function of a bank is deficit financing and deposit mobilization. They collect deposits from customers and grant loans to people and businesses that need financing. They collect an interest from the loan customers and in turn grant interest to the deposit holders.
What is the purpose of a certificate of deposit?
The reason people invest in a certificate of deposit is its outcome. A higher interest rate on the maturity of your money. The ultimate purpose is knowing that your money saved will be increasing as it sits.
What is the main purpose of a safe deposit box?
The main purpose is to keep your valuables safe and out of your house where they could be stolen, or destroyed by water, fire, etc., A safety deposit box is kept in a fireproof area in the bank and is certainly safe from theft. In Canada the amout you pay for a safe deposit box is tax deductable.
What is the meaning of Mobilization of credit in banking?
As you might already know, the main business for banks is accepting deposits and granting loans. The more the loans the banks disburse the more profit they make. Also, banks do not have a lot of their own money to give as loans. They depend on customer deposits to generate funds for granting loans to other customers. So a deposit mobilization scheme would encourage customers to deposit more cash with the bank and this money in turn will be used by the bank to disburse more loans and generate additional revenue for themselves.
What are the statement of problem in deposit mobilization for thesis writing?
Lack of awareness among potential depositors about available banking products and services. Limited access to banking services in rural or remote areas, leading to low deposit mobilization. Insufficient incentives or promotional activities to encourage individuals to save and deposit money in banks.
What is deposit mobilization?
Banks mobilize deposits by making finances and by investing in various financial markets. Basically deposit mobilization is related to the creation of credits. The banks would have special campaigns where they would interact with a lot of people and invite them to make deposits with their bank.
Example of grassroots mobilization?
Grassroots mobilization a gathering of individuals within a group or a community for a particular cause or purpose. Examples are public demonstrations and union strikes.
What is mobilization in tagalog?
"Mobilization" in Tagalog is "mobilisasyon." It refers to the act of organizing and preparing resources, such as personnel and equipment, for a specific purpose or goal.
What is the purpose of rural electrification administration?
to bring electricity to rural areas such as Tennessee Valley
What is the function of a bank?
The function of a bank is deficit financing and deposit mobilization. They collect deposits from customers and grant loans to people and businesses that need financing. They collect an interest from the loan customers and in turn grant interest to the deposit holders.
What is social mobilization in urdu?
social mobilization
What is the purpose of a direct deposit form?
The purpose of a direct deposit form it to allow payments to be made directly to one's bank account. This is a common method used in larger corporations for direct deposit of one's earnings into a personal bank account.
Challenges in revenue mobilization?
revenue mobilization?
What is the purpose of a certificate of deposit?
The reason people invest in a certificate of deposit is its outcome. A higher interest rate on the maturity of your money. The ultimate purpose is knowing that your money saved will be increasing as it sits.
When was Mobilization - journal - created?
Mobilization - journal - was created in 1996.
What does social mobilization mean?
what are the real meaning of social mobilization
