Question

" RBI plays an crucial role in controlling formal sector loans ." explain?

Answer 1

Answer:

RBI HAS MAJOR ROLE IN PROVIDING FORMAL SECTOR CREDIT. ITS HAS ROLE IS STATED IN THE FOLLOWING POINTS

● THE RBI ensures that the banks give loans not just to profit making businesses and trades but also to small cultivator, small scale industries, small borrowers, etc.

● Periodically, banks have to submit information to the rbi on how much they are lending to whom and at what interest rate they are lending to borrowers etc.

● The banks maintain a minimum cash balance out of the deposit they receive. The rbi monitors the banks in actually maintaining cash balance.

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Answer 2

Answer:

HERE IS YOUR ANSWER DEAR.....

Explanation:

A. The Reserve bank of India supervises the functioning of formal sources of credit of India.

B. The RBI monitors that the banks actually maintain a minimum cash balance out of the deposits they receive.

C. RBI ensures that the banks give loans not just to profit making business and traders but also to small cultivators, small-scale industries, small borrowers etc.

D. Periodically banks have to submit information to the RBI on how much they are lending to whom at what interest rates etc.

E. RBI is the central bank of India.