What would happen if all the depositors went to ask for their money at – InterviewSolution

1.	What would happen if all the depositors went to ask for their money at the same time ?
Answer» All commercial banks deposit certain percent of their deposits with the Reserve Bank of India. Next, advances loans to customers. Keeps only 15% of their deposits as cash. If all the depositors want their money back, there will not be any liquid cash with the bank. When banks are unable to pay cash, then immediately people’s trust on the bank is lost.

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