Question

how do the banks use the major portion of their deposits??​

Answer 1

Answer:

1. Major portion of the deposits is used by banks for extending loans to borrowers.
2. Some portion is used as cash reserve ratio with the RBI.
3. Some portion of money is used as statutory liquid ratio deposit with the bank itself as set by RBI.

Explanation:

hope the answer the question

Answer 2

Answer:By giving loans to whose who need it at an reasonable rate of interest.

Thus they act as intermediate between those who have surplus money and those who need it

Explanation: