Question

Give an account of reserve Bank of India

Answer 1

RBI has major role in providing formal sector credit. It’s role is stated in the following points:

• The RBI ensures that the banks give loans not just to profit making businesses and traders but also to small cultivators, small scale industries etc
• Periodically banks have to submit information to the rbi on how much they are lending , to whom, at what interest rate etc
• The banks maintain a minimum cash Balance out of deposits they receive. The rbi monitors the banks in actually maintaining cash balance.

Hope it helps u

Answer 2

The Reserve Bank of India (RBI) is the central bank of India, which was established on April 1, 1935, under the Reserve Bank of India Act. The Reserve Bank of India uses monetary policy to create financial stability in India, and it is charged with regulating the country's currency and credit systems.

✌