โThe RBI plays a crucial role in controlling the formal sector loans.โ Explain.
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1. money supply is controlled by RBI.
2.it sees that all the banks are not giving loan only to profit making business but also to small farmers, manufacturers.
3. it sees that all the banks give periodically information that how much they lend to whom and what interest rate.
4. it make rules and guidelines for the banks. 5.it sees that banks maintain minimum cash with them which is 15 percent of the total deposit
2.it sees that all the banks are not giving loan only to profit making business but also to small farmers, manufacturers.
3. it sees that all the banks give periodically information that how much they lend to whom and what interest rate.
4. it make rules and guidelines for the banks. 5.it sees that banks maintain minimum cash with them which is 15 percent of the total deposit
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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......
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