Explain the role of RBI in formal sector?
Answers
Role of RBI in formal sector
The Reserve Bank of India (RBI) supervises all formal sources of credit or loan approvals or disbursements in India.
This is the Central Bank of India. Commercial Banks are also required to hold the part of their cash with Reserve Bank of India maintaining a minimum said type of cash out deposits and banks also has to submit the lending information details to the Reserve Bank of India to ensure the bank gives loans to everyone in need.
Hope this may help you and be the brainliest !!
Happy learning !!
Answer:
RBI has major role in providing formal sector credit.
It's role is stated in the following points
1. The RBI (Reserve Bank of India ) ensures that the banks give loans not just to profit - making business and traders , but also to small cultivators , small scale industries , small borrower etc