Question

How does Reserve Bank of India keep a check on the functioning of banks? plz answer it urgent

Answer 1

Hello there your answer

Reserve bank of India keeps a check on the fuctioning of the banks in the following ways
1) RBI fixes rate of interest which should be accepted by all banks 
2) it controls the flow of currency in the nation 
3) it demands a periodic report from all banks which banks should submit that is compulsory 
4) it makes rules and regulations for the bank activities like loan credit debit 

Hope it helps you dear...