Why Banking Services Matter

Pulling this chapter's threads together: a bank mobilises the scattered small savings of a huge number of depositors into a usable pool of loanable funds, lends that pool out through a range of deposit and credit products, multiplies its lendable capacity through the mechanics of credit creation, and increasingly delivers all of this through electronic channels that remove the need to visit a branch. Standing above the whole system, the Reserve Bank of India keeps this mobilisation of public money safe, stable and aligned with the wider goals of the Indian economy. …