Question

how does the Reserve Bank of India supervises The functioning of the banks why is this necessary

Answer 1

reserve bank of India decides the rate of interests of bank on loan.

reserve bank of India takes the data of the banks for further calculation

Answer 2

$\Large{\textbf{\underline{\underline{Points\;are}}}}$

1. It screens the parity kept by banks for everyday exchanges.

2. It checks the bank give credits to benefit making organizations and dealers as well as to little borrowers.

3. Intermittently banks need to give insights regarding the moneylenders, borrowers and loan cost to RBI.

It is important for making sure about open government assistance. It maintains a strategic distance from the bank to maintain the business with benefit thought process as it were. It additionally keeps a mind financing cost of credit offices gave by bank. RBI ensures that the advances from the banks are reasonable and modest.