Why fixed deposits an public deposits are unsecured loans and in balance sheet?

Fixed deposits and public deposits are considered unsecured loans because they do not have specific collateral backing them; rather, they rely on the creditworthiness of the institution. In a balance sheet, these deposits are classified under liabilities, reflecting the obligation of the company to repay the amount to depositors after the maturity period. Unlike secured loans, where assets can be claimed in case of default, the repayment of these deposits is based on the trust and financial health of the borrowing entity.