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Customer Rights - Mobilization of CASA deposits 2017-18

One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. The cost of deposits is an important factor of profitability analysis of the Bank. Deposits mobilized at high cost will affect the profitability and bring down the profit of the Bank. To address the issue of high cost of Deposits, mobilizations of CASA deposits have paramount importance in Banking. CASA deposits mobilization will not only bring down the cost of deposits and improve the profitability.

CASA stands for Current and Savings accounts. The CASA Ratio shows how much deposit a Bank has in the form of Current and Savings account deposit in the total deposit.

A higher CASA Ratio mean higher portion of the deposits of the Bank has come from Current and Savings deposit which is generally a cheaper source of fund. Higher the CASA ratio better the net interest margin which means better operating efficiency of Bank.

In view of the importance attached to mobilization of CASA in bringing down the cost of funds we propose the following policy of the Bank for mobilization of CASA deposits with an aim to achieve 45 per cent of total deposits during the year 2017-18.

As per the deposit policy of the Bank, branches can open the following demand deposit accounts for mobilizing CASA 

a) "Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specific period.

b) 'Basic Savings Bank Deposit Account' means a demand deposit account opened for greater financial inclusion. Such accounts, opened on the basis of simplified KYC norms are additionally treated as a Small Account subject to conditions stipulated by RBI.

c) "Current Account" means a form of demand deposit where withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit.


To cover all the households in the area of operation of branches for opening Savings Bank accounts and Basic Savings Bank accounts


 Financial Literacy Awareness Camps shall be conducted by branches in their area of operation for educating the people especially farmer community about the banking facilities available and importance of savings from their earnings.

To motivate farmers who have availed crop loans to deposit their harvest proceeds in KCC accounts which will reduce the interest burden of the farmer and surplus of loan amount can be treated as deposit.

To issue RuPay ATM-cum-Debit Cards  and Kisan Credit Cards to all eligible account holders.

To open Savings Bank accounts of all salaried class people working in the area of operation.

To encourage mobilization of small deposits, through CSPs where USB are established.

To encourage Women Self Help Groups to deposit their surplus in their Group Savings accounts.

To open Savings Bank accounts of all Doctors and other professionals and self employed in the area of operation.

To open minor’s accounts of School Children to inculcate the habit of Savings among students.

To open Current accounts of all business establishments in the area operation and canvass about NEFT facility available in the Bank for Safe transfer of funds with low cost.

The above policy will be reviewed at annual intervals.