Act rendering Currency notes of Rs. The “capital employed in London” is (vii. │ £m. Thus in the case of Indian Exchange Banks, their deposits in London (other than those fixed for long periods) should be at least balanced by their short–term loans in London, their cash in London, their portfolio of trade bills having a London domicile, and such of their securities as may be readily marketable in London. It is interesting to reflect that India’s love of the precious metals, ruinous though it has been to her own economic development, has flourished in the past to the great advantage of Western nations.  They should also distinguish, as two already do distinguish, between fixed deposits and accounts at call or for short periods. Only our familiarity blinds us to the marvellous nature of the system. But, as we have seen before, a fixed proportion of the liabilities, even when that proportion is voluntarily chosen by the directors, and not imposed by law, is not the proper standard for a bank reserve.