- Fixed and recurring deposits are time deposits.
- Funds can be withdrawn only with advance notice.
- They are held for a specified time period or maturity.
- These are non-cheque-able deposits.
- Contribution to Financial Stability:
- Provide banks with stable, long-term funds.
- This allows banks to plan their lending activities more effectively.
- They are less prone to sudden withdrawals compared to demand deposits.
- This enhances a bank’s liquidity management and overall stability.