False, The banks typically generate income by borrowing funds from depositors and paying them back at a predetermined interest rate.
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Furthermore, banks typically diversify their lines of business and make money through nontraditional financial services like investment banking and wealth management. However, the following categories can roughly be used to describe the money-generating activities of banks: Income from interest, capital markets, and fees
Banks are required to keep cash reserves with the Reserve Bank equal to a fraction of their demand and time liabilities. They must keep a current account with the Reserve Bank for this reason. The Banking Departments of the Reserve Bank's Regional offices open the banks' current accounts.
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