Question

Reserve Bank of India in controlling sector loan

Answer 1

Hey Mate


The Reserve Bank of India (RBI) supervises all formal sources of credit or loan approvals or disbursements in India.

This is the Central Bank of India.

Commercial Banks are also required to hold the part of their cash with Reserve Bank of India maintaining a minimum said type of cash out deposits and banks also has to submit the lending information details to the Reserve Bank of India to ensure the bank gives loans to everyone in need.

Answer 2

HEYA ✔✔

⏩ RBI

i). The formal resource work under the supervision of the Reserve Bank of India or the RBI. The RBI monitors that the banks actually maintain the cash balance.

ii). The RBI sees that the banks give loans not just to profit making business and trade, but also provide loans to small cultivators, small scale industries, small borrowers, etc.

iii) The rate of interest of the formal lenders is decided by the RBI. So normally, the interest rates are very low.