Question

Role of rbi in supervision and regulation of controlling banks

Answer 1

answer:-

rbi releases various measures to supervise and regulate bank it follows a policy called " moral suasion" under which it guides various commercial banks by intervening a meeting to adopt some policy ,it is entrusted with a responsibility of promoting banking structure moreover it keeps control on regulation of money through commercial banks by following methods

:-

1) bank rate

2) repo rate

Answer 2

RBI has the power of regulation and administration of the banking sector and financial structure of India.

It has the authority to give licenses to banks and monitors whether they comply with directives.

RBI asks banks to submit details of assets and liabilities from time to time in order to avoid risks.