Some Aspects of Deposit Mobilisation-A Comment


Some Aspects of Deposit Mobilisation A Comment A Bagchi IN his article "Some Aspects of Deposit Mobilisation" (September 5, 1970, pp 1495-97) V V Bhatt has suggested certain lines on which schemes might be framed by commercial banks "to induce a higher rate of saving generally and saving in the form of bank deposits in particular". In his view if deposit growth is to be stepped up special schemes linked with the motives underlying the urge to save should be framed. The urge to save, according to him, steins from a desire to own a bouse, to provide for old age, to bequeath property to children and to provide for contingencies like illness. Hence, he argues, it would tempt people to put their money in banks if the banks offered to advance a loan of an amount equal to one's deposits accumulated over a specified number of years for, say, house building or daughter's marriage, etc. With similar expectations many of the commercial banks are now operating special deposit schemes said to be tailored to suit the convenience of different segments of depositors. This note seeks to examine, in broad terms, whether the presumption underlying these expectations is warranted in theory and by the facts of the Indian economy and the extent to winch schemes such as those advocated by Bhatt are likely to help achievethe desired aims. An attempt is also made in this context to explore areas where deposits could be looked for more fruitfully.