Q. Which of the following is not included in the assets of a commercial bank in India? (UPSC Prelims 2019)
Answer: Deposits
Notes: The correct answer is [B] Deposits. In the context of commercial banking, "assets" are items that the bank owns or money owed to the bank, while "liabilities" are what the bank owes to others.

• Deposits (Correct - Not an Asset): Deposits made by customers (Savings, Current, or Fixed deposits) are liabilities for a bank. This is because the bank is legally obligated to return this money to the depositors on demand or after a specified period, along with interest in most cases.
• Advances [A] (Incorrect): These include loans, overdrafts, and cash credits provided by the bank to its customers. Since the customers must repay this money to the bank, it is a primary income-generating asset.
• Investments [C] (Incorrect): This refers to the bank's holdings in government securities (SLR requirements), shares, and bonds. These are assets because they represent ownership and provide returns (interest or dividends).
• Money at call and short notice [D] (Incorrect): This is a very liquid asset. It refers to short-term loans (ranging from 1 to 14 days) made by the bank to other financial institutions. It is considered an asset because it is money owed back to the bank.

In a bank's balance sheet, the total assets must equal the total liabilities plus equity. The primary assets are usually loans and advances, while the primary liabilities are the deposits collected from the public.