Which of the following is not included in the assets of a commercial bank in India?

The correct option is Deposits.

To understand why Deposits are not included in the assets of a commercial bank in India, let us look at the fundamental accounting definition of assets and liabilities for a banking institution:

1. Liabilities:
Deposits made by customers (such as savings accounts, fixed deposits, and current accounts) represent money that the bank owes to its depositors. Since the bank is legally obligated to return these funds whenever demanded by the customer or upon maturity, deposits are classified as Liabilities on the bank's balance sheet.

2. Assets:
Assets are items of value owned by the bank or amounts owed to the bank by others from which it generates income. Key assets of commercial banks include:

• Advances: Loans, cash credits, and overdrafts provided to customers from which the bank earns interest income.

• Investments: Investments in government securities (SLR securities), bonds, and shares.

• Money at call and short notice: Short-term loans extended to other banks or financial institutions for very short periods (1 to 14 days) to earn interest on surplus cash.

• Cash Reserve with RBI and Cash in hand: Liquid cash assets held by the bank.

Therefore, while Advances, Investments, and Money at call and short notice form major parts of a commercial bank's assets, Deposits are liabilities.