Question

in what ways does the RBI supervise The functioning of banks

Answer 1

it issue currency notes
it manage meetings time to time
it serway another banks time to time

Answer 2

RBI supervises the functioning of the banks in the following ways:

1- it supervises the functioning of formal sources of loan.

2- it monitors whether the bank is actually maintaining the cash balance or not.

3- it sees whether bank is paying loans not just to profit making businesses but also to snall traders, manufacturers, borrowers etc.

4- periodically banks have to submit information to RBI on how much they are lending to whom and at what rate of interest.

5- it also issues currency notes on behalf of central government.

6-it monitors the functioning of formal sectors like banks and cooperatives.