Its said That Bank Create Money?

Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the RBI. The reserve requirement is currently 6.5 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of Rs.100, assuming a reserve requirement of 10 percent, the bank can then lend out Rs.90. That Rs.90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out Rs.81 of that Rs.90 deposit, and that Rs.81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.
In this way, money grows and flows throughout the community in a much greater amount than physically exists. That Rs.100 makes a much larger ripple in the economy than you may realize!