# The full form of NDTL meaning, and definition

On this page, We are going to learn about the full form of NDTL As well as the meaning of NDTL, what NDTL stands for, the abbreviation, and the acronym for NDTL, So you should read this post till the end.

## The Full Form of NDTL: Net Demand and Time Liabilities

NDTL stands for Net Demand and Time Liabilities. NDTL or Net Demand and Time Liabilities is the total demand for funds by the public and private sectors from the banking system. It represents the total amount of credit that is available in the banking system.

The Reserve Bank of India (RBI) regulates the banking system to ensure that it meets the credit needs of the economy while maintaining financial stability.

### What is the role of NDTL in banking

NDTL is important because it affects the monetary policy decisions of the RBI. Money supply in the economy is managed by the Reserve Bank of India using monetary policy.

Changes in the money supply can impact inflation, economic growth, and other aspects of the economy. By managing the NDTL.

the RBI can help to ensure that the banking system is able to meet the credit needs of the economy while also maintaining financial stability.

### How to calculate NDTL in Banking

It is also common for banks to deposit their deposits nearby in other banks. A deposit of this type is not included in the NDTL calculation. NDTL is calculated using the following formula.

NDTL = Demand Liabilities + Time Liabilities + Other Demand and Time Liabilities – Deposits in Other banks

### An example of NDTL in banking

Suppose XYZ bank has Demand Liabilities 1000 and Time Liabilities 2000. The ODTL is 100 and the Demand Liabilities are 1000. The NDTL of this bank will be as follows if that bank has Rs 200 in another bank.

NDTL = Demand Liabilities + Time Liabilities + Other Demand and Time Liabilities – Deposits in Other banks

= 1000+2000+100-200
= 2900 Rs

In this case, the bank has NDTL 2900 Rs out of which CRR and SLR have to be managed.

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