Banks exist as financial intermediaries that transform deposits (raw material) into loans (finished products), which are essential for generating employment, creating businesses, and driving economic growth; while RBI protects depositors, banks remain safe institutions for storing money, though some people are shifting savings to mutual funds as India's savings rate declines.
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If RBI is all for deposit, then why do banks exist? Do you have bank has to be in the business, right? So, RBI kind of protects depositors as we kind of see that.
>> The deposit which is the banks collected is raw material for them and they convert into finished products is like they do the lending. Lending is essential for generation of employment, creation of business, augmenting business. That's how your economy grows.
And then as it is the savings rate in India coming down, a lot of people have moved away from banking to mutual funds.
But banks, by and large, are very safe.
Where you don't want to have headache, you just connect with you guy, you guy, you big money guy, you take money here.
Keep cool, keep money, man. It's always safe. There's no issue.
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