rbi plays crucial role in controlling formal sources of credit
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AS BANKS ARE FORMAL SOURCES OF CREDIT
• RBI supervise the functioning of the bank
• It moniters the balance kept by the banks for day to day transaction
• It checks that the banks give loans not just for business man but also for small borrowers
• Periodically banks have to give details about lending borrowers and interest rate to RBI
• It is necessary for securing public welfare it presents the banks from running the business with profit motive only.
• It also keeps a check on interest rate of credit facilities
• RBI supervise the functioning of the bank
• It moniters the balance kept by the banks for day to day transaction
• It checks that the banks give loans not just for business man but also for small borrowers
• Periodically banks have to give details about lending borrowers and interest rate to RBI
• It is necessary for securing public welfare it presents the banks from running the business with profit motive only.
• It also keeps a check on interest rate of credit facilities
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