Describe how banks function as intermediaries between depositors and borrowers, using the example of Navdeep and Rima.

Banks act as intermediaries by collecting deposits from savers and lending to borrowers. Navdeep saves three thousand rupees monthly from his salary and deposits it in a bank for safety. Rima runs a bamboo products business and needs money for operations. When friends and family couldn't help sufficiently, she took a loan from the bank. The bank holds Navdeep's surplus money safely and provides it to Rima as a loan, which she repays later. This system helps both savers and borrowers meet their financial needs efficiently.