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Deposit

Demand Deposit defined as deposits payable on demand through cheque or otherwise and serves as a medium of exchange. All current deposit are obviously demand deposit.

Time deposit are all other deposits which are not payable on demand and on which cheques cannot be drawn and have fixed term maturity. Fixed deposits are time deposit.

Financial Intermediation- The process performed by banks taking funds at lower interest rate from depositor and then lending them out to a borrower at relatively higher interest rate.

Financial Intermediaries a wide variety of financial institutions or firms, more popularly called FI known Bank and Non-bank financial intermediaries (NBFIs). FIs mediate or stand between ultimate lenders and ultimate borrowers or between those with budget surpluses and those who wish to run budget deficits.

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