Question

in what ways does reserve bank of india supervise the functioning of banks

Answer 1

R.BI is considered as regulator of all the banks because it fix rate of interest on deposits and loan facility. It gives loan to other banks.

Answer 2

1.It moniters the banks in actually maintaining cash balance.
2.It see tht the banks give loans not just to profit making businesses nd traders but also to small cultivators,small scale industries etc.
3.Other banks hv to submit info. to RBI on hw much they r lending to whom nd at wht interest etc