How does the Reserve bank of India supervise the functioning of Banks?why is these necessary.
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Answered by
11
The RBI supervises the functioning of banks in this manner -
1) It sees whether the banks are maintaining a minimum cash balance of the deposits.
2) It makes sure that people from all backgrounds receive loans and not only the rich, powerful businessman and traders.
3) The above point is made sure by periodical statements given by the banks to the RBI that contains information about to whom the bank has given loan, at which interest the loan was given,etc.
This is necessary so as to maintain equality of who receives the loans. Our aim is that all industries should grow. Even the small scale industries should be given the advantages of loans . As a result, the country's economy will also grow.
Hope This Helps You
1) It sees whether the banks are maintaining a minimum cash balance of the deposits.
2) It makes sure that people from all backgrounds receive loans and not only the rich, powerful businessman and traders.
3) The above point is made sure by periodical statements given by the banks to the RBI that contains information about to whom the bank has given loan, at which interest the loan was given,etc.
This is necessary so as to maintain equality of who receives the loans. Our aim is that all industries should grow. Even the small scale industries should be given the advantages of loans . As a result, the country's economy will also grow.
Hope This Helps You
Answered by
9
HEY BUDDY HERE IS UR ANSWER !!!
(a) The RBI monitors the banks in maintaining a minimum cash balance out of the deposits they receive.
(b) The RBI sees that the banks give loans not just to profit-making business and traders but also to small cultivators, small scale industries, small borrowers etc.
HOPE U LIKE ANSWER !!
☺☺ BE BRAINLY ☺☺
(a) The RBI monitors the banks in maintaining a minimum cash balance out of the deposits they receive.
(b) The RBI sees that the banks give loans not just to profit-making business and traders but also to small cultivators, small scale industries, small borrowers etc.
HOPE U LIKE ANSWER !!
☺☺ BE BRAINLY ☺☺
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