Question

On what ways does the Reserve Bank of India supervise the functioning of the banks?Give one way why is it necessary??

Answer 1

Reserve Bank of India supervises the functioning of the banks as they have to give a record of their total deposits and loans in a daily basis to Reserve Bank and it keeps a close eye on these records.


It is necessary because:-
i) it keeps a check on the functioning of the bank and ensures that loans have been given not only to the rich but also the poor.