Question

*Role of. " RESERVE.. BANK OF INDIA" ??​

Answer 1

Answer:

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Functions of Reserve Bank :

• It issues the currency in India.
• It supervises the loans provided by Banks to Farmers .
• It ensures that the bank provides loans to everyone farmer and not only to rich industrialists.
• It also allows the banks to keep the balance between the rate of interest.
• It also allows bank to keep residual amount of money in it .

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Answer 2

Answer:

Reserve Bank of India performs the following functions:

1. It prints currency on the behalf of the government of India. According to a law, no individual or organization can print currency notes apart from The RBI.
2. It monitors that banks maintain a minimum cash reserve out of the deposits they reserve. In India, this cash reserve is 15%.
3. It ensures that banks lend credit not just to profit making businesses but also small scale businesses, small cultivators etc.
4. Periodically, banks have to submit information to the RBI on how much they are lending, to whom and at what rate of interest.
5. Such a supervision by the RBI on the functioning of the banks is necessary so that there is no mismanagement in their working or misappropriation of funds.

Hope that helps