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Which institute is called debtors as …

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Which institute is called debtors as well as creditors?

Posted by Manjeet Kumar 5 years, 2 months ago

CBSE > Class 11 > Business Studies

1 answers

Yogita Ingle 5 years, 2 months ago

Banks are called debtors as well as creditors because banks accept various types of deposits from the public such as savings account deposit, current account deposit and fixed account deposit, and pay interest on them. They are indebted to repay the depositor the amount deposited by him or her. Besides this, they grant loans and advances on the basis of the total deposits available with them. These advances can be in the form of overdrafts, discounted trade bills, cash or consumer credits, etc.

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