Question

Which government body supervises the functioning of formal sources of loans in India? Explain its functioning.(All India - 2012)

Answer 1

RBI (Reserve Bank of India) supervises the functioning of formal sector in India.

Functioning:

1. It monitor the functioning of bank

2. It checks that banks give loan to each and everybody and not only profit making businessman and wealthy people.

3. It supervises the functioning of banks

4. Banks have to regularly submit a report to the Reserve Bank of India