Assume there are two separate banks, bank A and bank B. There are also two people: Person A, Person B. They accounts have the following balances:
Person A: 400
Person B: 0.00
Person A in order to get 400 in his bank account has had to go in with physical money and deposit it into his account. Person A now decides to transfer his 400 into person B's account.
This means that digitally, on person A now has 0 and person B has 400, but, bank A still has the physical 400.
How therefore does bank A give the money to bank B?
I assume that they have some kind of courier (like how they deposit into cash machines) -- Is this the case?