how does RBI play a crucial role in controlling the formal sector of loans explain
Answers
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.
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Answer:
HERE IS YOUR ANSWER DEAR....
Explanation:
A. The Reserve bank of India supervises the functioning of formal sources of credit of India.
B. The RBI monitors that the banks actually maintain a minimum cash balance out of the deposits they receive.
C. RBI ensures that the banks give loans not just to profit making business and traders but also to small cultivators, small-scale industries, small borrowers etc.
D. Periodically banks have to submit information to the RBI on how much they are lending to whom at what interest rates etc.
E. RBI is the central bank of India.