Zerodha's Nikhil Kamath explains how ₹100 in bank can become ₹500 in economy

Zerodha Co-founder Nikhil Kamath explained how money deposited in a bank multiplies through lending. He said when ₹100 is deposited, banks keep a portion as RBI-mandated reserves and lend the rest. As loans are spent, redeposited and re-lent, the same ₹100 supports multiple lending cycles, expanding deposits to nearly ₹500. He added India's low credit-to-GDP ratio reflects cautious banking.