Explain the reason for the necessity of supervision by the reserve bank of india of formal sources of loans
Answers
Answer:
It is a well-known fact, the Reserve Bank of India actually supervise the entire functioning of formal sources of loan/credit in India. Due to this, it is otherwise known as Central Bank of India.
The commercial banks need to hold the part of cash reserves with the Reserve Bank of India, apart from maintaining the minimum cash balance completely out of deposits they actually receive.
Explanation:
Answer:
The Reserve Bank of India circulates and manages the entire banking system in India.
Explanation:
The citizen of India are well aware of this fact. The Reserve Bank of India is the countries central bank that supervises the functioning of both the credit system as well as the loan system in India. The banks in India are required to hold some part of their reserves with the Reserve Bank.