Question

What is role of rbi in supervising the function of commercial banks brainly?

Answer 1

Granting license to banks

The RBI grants license to banks for carrying its business. License is also given for opening extension counters, new branches, even to close down existing branches.

Bank Inspection

The RBI grants license to banks working as per the directives and in a prudent manner without undue risk. In addition to this it can ask for periodical information from banks on various components of assets and liabilities.