HOW BANKS WORKS

In this blog we discuss how banks earn

So the banks have two main functions accepting the deposit and advancing loans the banks keep small of reserve which is known as crr cash reserve ration it means the total net demand and time liability which commercial bank kept for central bank so rest of the money bank gives in the amount of loan such as house loan emi loan business loan etc their was an apex body over it which is known as RBI which is the regular of all commercial banks

The Reserve Bank of India (RBI) is the highest banking regulatory authority in India. It was established by the RBI Act, 1934. Indian banks are basically divided into two groups; schedule banks and non-Schedule banks.