The Economic Times News

Instead of turning your Rs 10 lakh into Rs 24 lakh, you could turn it into Rs 2 crore. A CA explains how

Banks utilize fractional reserve banking, lending out most of your deposits while keeping a small reserve. This system generates significant revenue for banks through loans at higher interest rates than savings accounts offer. Understanding this dynamic reveals why savings often stagnate, prompting a shift towards growth-oriented investments for long-term wealth.