Question

In what ways does the Reserve Bank of India supervise the functioning of banks?Why is this necessary?

Answer 1

HEY MATE<<<

Reserve Bank of India (RBI) supervised the banks in the following ways :

(i) It monitors the balance kept by banks for day-to-day transactions.

(ii) It checks that the banks give loans not just to profit-making businesses and traders but also to small borrowers.

(iii) Periodically banks have to give details about lending, borrowers and interest rate to RBI.

It is necessary for securing public welfare. It avoids the bank to run the business with profit motive only. It also keeps a check on interest rate of credit facilities provided by bank. RBI makes sure that the loans from the banks are affordable and cheap.

Hope it helps>>>>Brainliest Pls>>>

Answer 2

a.) Reserve Bank of India supervises the functioning of banks by ensuring that they keep a certain perportion of deposit with them .(Nowadays bank have to keep 15 % of deposit with them ).

b.) It ensures that banks dont become a profit making body and ensures that it also gives loan to small farmers and not only big businessmen.

c.) Regular reports is send from banks to RBI containing information about how much loan is given to whom and on how much interest.