Question

In what ways does the Reserve Bank of India
(Reserve Bank of India) sepervise the functioning o
banks? Why is this necessary?​

Answer 1

Here is your answer

The Reserve Bank of India supervises the functioning of banks a

follows

i) The Reserve Bank of Indiachecks that the banks

tain a minimum cash balance out of the deposits the

receive (currently this is 1506

(ii) The banks have to periodiclly submit information to Reserve Bank of India on how much they are lending.whom, at what interest rate, etc. Thus, the Reserve India ensures that the banks give loans not just to profit-making businesses and traders but also to small

cultivators andand other small barrowers.

This supervision is necessary tp ensure that small busi

also grow, besides others. Further, this monitoring ensu

that banks do not loan more money than they are to, as such an action an create a crisis situation

I hope my answer help you .

vinay7860

Answer 2

Explanation:

⭐Solution⭐

(i)It ensures safety to the bank deposits of people.

ii)It helps in collection of economic data all over the country.

(iii)It contains corrupt practices from creeping within banks.

The RBI sees that banks give loans not just to profit- making businessmen and traders but also to small cultivators, small scale industries, to small borrowers etc.