Question

In what way does the reserve bank of india supervise the functioning of banks? why is it necessary?

Answer 1

HEYA MATE,

HERE IS UR ANSWER.

Thanks for asking this question.

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.

. I HOPE IT HELPS U.

Answer 2

$\large\mathfrak\pink{Explanation→}$

Thє rєsєrvє вαnk σf índíα ís thє cєntrαl вαnk σf índíα, αnd αll thє σthєr puвlíc sєctσr вαnks wσrk undєr thє supєrvísíσn σf thє rєsєrvє вαnk σf índíα. It mαnαgєs thє functíσníng σf thє вαnks ín thє fσllσwíng wαчs:

1. It mσnítσrs thє вαnk ín mαíntαíníng thє cαsh вαlαncє.
2. Lσαns αrє nσt just gívєn tσ prσfít-mαkíng σrgαnísαtíσns вut αlsσ tσ smαll cultívαtσrs αnd smαll scαlє índustríєs.
3. RВÍ mαíntαíns α pєríσdíc rєpσrt σf σthєr вαnks rєgαrdíng thє αmσunt lσαnєd tσ pєσplє.
4. It αlsσ kєєps α rєgulαr chєck σn thє íntєrєst rαtєs sєt fσr lσαns ín puвlíc sєctσr вαnks.