Question

What do the banks do with the deposits which they collect from he people

Answer 1

In India, banks keep only 15 percent of the deposits made by the  people.rest of the deposits are lend out as loans to people who need it as some interest which they have to repay after certain period of time

Answer 2

While data on what exactly banks are doing with the money they have accumulated is not out yet, daily data put out by the Reserve Bank of India (RBI) suggests an interesting insight. Photo: PTI
Since the Union government withdrew Rs500 and Rs1,000 notes from midnight on 8 November, banks have been flush with cash, primarily on account of people depositing now-invalid notes in their bank accounts.

With the country’s largest lender, State Bank of India, itself having collected Rs1.27 trillion in cash deposits in the first nine days after the prime minister’s announcement, the total amount of cash deposited in the banking system is likely to be over Rs4 trillion. In fact, it has been estimated by the Indian Banks’ Association that this amount was collected by Tuesday itself.