Question

in what ways does the RBI supervise functioning of banks ? why is it neccesary

Answer 1

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

Answer 2

Answer:

RBI functions are following :-

1) the RBI monitors the amount of money that banks loan out, and also the amount of cash maintained by them

2) It also ensures that banks give loans not just to profiting the businesses but also to small cultivators, small scale industries and borrowers

3) The above point is made sure by periodical statements given by the banks to the RBI that contains information about whom the bank has given loan, at which 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 counties economy will grow

Explanation:

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