Question

how does the Reserve Bank of India supervise The functioning of banks ? why is this necessary?​

Answer 1

The Reserve Bank of India supervises the functioning of formal sources of loans. ... The RBI monitors the banks in actually maintaining cash balance. The RBI sees that banks give loans not just to profit- making businessmen and traders but also to small cultivators, small scale industries, to small borrowers etc..

thanks..

Answer 2

Answer:

a. The Reserve Bank of India supervises the functioning of banks in the following ways:

1. The RBI monitors that the banks actually maintain the required cash balance.

2. It sees that the banks give loans not just to profit making businesses and traders but also to small cultivators, small scale industries, small borrowers.

3. The banks submit information to the RBI about loans sanctioned to different categories of persons along with terms and conditions of the loans. In this way RBI sees that the loans are sanctioned to all including the poor.