A deposit planning framework at the banking system level in India

Success of an economic development plan depends on the extent to which the commitments about mobilizing and utilizing resources are fulfilled. Banks play a major role in the economic development of a country by mobilizing resources in the form of bank deposits and further allocating financial resources to the productive sectors. Therefore, there is a need for an appropriate comprehensive integrated deposit planning which will give a total picture of the available financial resources and plans to mobilize further resources in the form of bank deposits. This article examines the economic factors and processes determining bank deposits and its various components and suggests a planning framework at the banking system level which will give future indicators to the planner in the commercial banks about the extent to which deposits and its various components are likely to grow. The basic objective of such a planning framework would be to provide a long term perspective to the business output, viz. deposit integrated fully with other functional subsystem of the banking activities like credit and marketing and to improve our understanding of the future and prepare ourselves to cope with emerging challenges.