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In what ways does the reserve Bank of India supervise the functions of Bank ?? Please answer ??? |
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Answer» The RBI aupervises the functioning of formal sources of loans in India. For instance, banks maintain a minimum cash balance out of the deposits the receive.Functions of RBI are:-The RBI monitors that the banks actually maintain this cash balance. Similarly, the RBI ensures that the banks give loans not just to profit-making businesses and traders , but Also to small cultivators, small scale industries, small borrowers etc.Periodically, banks have to submit information to the RBI on how much they are lending, to whom , at what interest rate etc. Rbi checks the banks that they are giving loans not only to businessman and traders but also to small peasants and farmers they also make a criterion to give loans and maintaining cash balance |
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