Your Bank Does Not Have Your MONEY!!! | Urdu/Hindi | My Channel Video | Goher Ali Rizvi

Fractional Reserve Banking allows banks to spend money deposited by their customers towards loans or investments etc, Banks are usually allowed to reserve fraction of the money they owe to their customers and customers usually do not know about it.. Its is usually mentioned in their contracts but who cares to reach them.

It is True, due to Fractional Reserve Banking, your bank doesnt keep all of your money and but just a portion of it, which is then used to generate more money for the bank.

Thats why in common banks in Pakistan and India, most of the banking is crazy free, Banks usually offer Free Account opening, savings, deposits, checkbook, bank draft etc.

Read more about Fractional Reserve on following links

http://www.sbp.org.pk/m_policy/mp-learn-2.asp

http://www.sbp.org.pk/m_policy/mpf-03.asp

https://en.wikipedia.org/wiki/Fractional-reserve_banking

https://www.investopedia.com/terms/f/fractionalreservebanking.asp

https://www.khanacademy.org/economics-finance-domain/macroeconomics/monetary-system-topic/fractional-reserve-banking-tut/v/overview-of-fractional-reserve-banking

https://www.bzu.edu.pk/PJSS/Vol35No22015/PJSS-Vol35-No2-09.pdf

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