Want this question answered?
At least as long as the IRS requires records of transactions, 7+ years
Some banks keep personal records permanently on file but they can only report to a CRA up to 7 years.
Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. The banks included in this schedule list should fulfil two conditions. 1. The paid capital and collected funds of bank should not be less than Rs. 5 lac. 2.Any activity of the bank will not adversely affect the interests of depositors.
Yes. Banks have to maintain records of all checks that were cashed by them. So if you want information from 25 years ago, banks may not be able to help you readily because the data is from so long ago. But, you can get a court order asking for this information if it is important and in that case the banks have to dig deep into their records and will give you the information you want.
banks were not holding required reserves to cover withdrawals
1) protection of money. 2) invest money to productive use. 3) meet depositors need.
In an efforts to protect depositors money the Federal Reserve requires that banks follow many rules in their day to day business. They require the banks keeps a certain amount of cash on hand at all times and guarantee depositors accounts up to two hundred thousand dollars per account.
The banks mediate between those who want to deposit surplus money and those who want money. To the depositors banks give them interest and from the borrowers they charge a higher interest rate. The difference between what they charge from borrowers and what they offer to the depositors is the main source of their income.
Frightened depositors feared for their money and tried to withdraw it from their banks.
YES. Banks were using depositors' money to invest in the stock market. When the market crashed everything vanished.
provide protection of the people
a situation in which many banks fail because they are not able to meet the demands of their depositors for cash
As the vast majority of banks are Corporations owned by stockholders or their depositors not governments, no. But there are a few government owned banks, a job in one of those banks would be a government job.
There was no insurance. That's why their depositors lost all their money. This was the motivation for the establishment of the FDIC.
It can happen that the depositors lose confidence in a banks ability to look after their money. if this happens in a big way most of the depositors demand the money they have in their accounts. this is known as a run on the bank. No bank can withstan a run on it without outside assistance.
They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund
Banks did not have enough money to pay all withdrawing depositors, so they shut down.