Question

why the reason is "it supervise the banking system by RVI​

Answer 1

The RBI monitors that the banks actually maintain the cash balance. The RBI sees the the banks give loan not just to profit - making business and traders but also to small cultivators, small-scale industries, small borrowers, etc. Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.

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