Question

in what ways does the reserve bank of india supervise the functioning of banks? why is it necessary?​

Answer 1

Answer:

Banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance. 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.

Answer 2

Answer:

The Reserve Bank of India supervises the functions of banks in the following ways: It monitors the banks in actually maintaining cash balance. It ensures that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.