NDTL Full Form in Banking is Net Demand and Time Liabilities. The Net Demand & Time Liabilities (NDTL) measure the difference between a bank’s demand & time liabilities (deposits) with the public and the deposit in the form of investments held by the other bank. NDTL is the sum of banks’ demand & time liabilities (deposits) with public and other banks, from which assets with other banks are removed to determine the net liabilities of other banks. Bank deposits are its liabilities and include demand & time deposits from the public along with other banks. The majority of bank deposits are demand as well as time deposits from the general population.

Demand deposits encompass any obligations that are payable on demand, such as current deposits, the demand liabilities element of savings bank accounts, demand draughts, overdue fixed deposit balances, and so on. Time deposits are those that are receivable on demand and include fixed deposits, employee security deposits, the time liabilities element of savings bank deposits, and so on. Banks also invest in other banks’ demand and time deposits, as well as a certificate of deposits. Banks also lend from other institutions in the call market, for example. This is a bank’s liability to certain other banks. Banks calculate and report NDTL every two weeks on Friday. Banks employ NDTL to calculate CRR, SLR, and now LAF.