In financial terms, “Primary Deposits” and “Secondary Deposits” refer to different stages in the banking system:

1. Primary Deposits: These are deposits made directly by individuals or entities into a bank. These deposits are considered primary because they represent the initial influx of funds into the banking system from depositors. Primary deposits include savings accounts, current accounts, fixed deposits, and other types of accounts where customers deposit money with the bank.
2. Secondary Deposits: Secondary deposits, also known as secondary reserves, refer to funds that banks deposit with each other or with central banks. These deposits are considered secondary because they are created by the banking system itself as part of managing liquidity and meeting regulatory requirements. Secondary deposits can include interbank deposits or deposits held by banks with central banks to meet reserve requirements or for other operational purposes.

In summary, primary deposits originate from customers depositing money directly with banks, while secondary deposits refer to funds that banks hold with other banks or central banks as part of their overall banking operations and liquidity management.