Is there any limit to deposit creation by banks? Explain.

Dear Student
As we know on deposits banks have to grant rate of interest. They can not expand their deposits by giving loans to the public.
Hence , powers of banks are not unlimited. So, Yes there is a limit to deposit creation by banks.
As there are various limits on Cash Deposits Ratio (CDRs) and Reserve Deposit Ratio (RDRs)
For details refer the following link - 
https://www.meritnation.com/cbse-class-12-commerce/economics/introductory-macroeconomics/money-and-banking/studymaterial/59_16_341_1988_5841

Regards

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