• Rajat Kulshrestha

What if the bank runs out of money?


Some players thinks the bank is bankrupt if it runs out of money.


But the truth is bank never goes Bankrupt. To continue playing, they use slips of paper to keep the track of each player's banking transactions - until the Bank has enough paper money to operate again.


The banker may also issue "New" money on the slips of ordinary paper.


But in India, No bank has ever got bankrupt or Run out of money.

If there is a sense where a bank is not performing good, in this case, either Reserve Bank of India (RBI) Or Government gives the Financial help or you can say Bail out Package to the bank, or Merge it with the other Banks.


Like, This year in march, Government, Central bank, Private banks and Investors came forward to help the YES BANK. They did Capital Re-structuring of the bank.


Here is a Pro tip: Diversify your savings into the different commercial banks and make sure they have Zero or Minimal NPAs.

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