MENU
Question -

In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?



Answer -

The Reserve Bank of India is the central bank of India, and all the other public sector banks work under the supervision of the Reserve Bank of India. It manages the functioning of the banks in the following ways:
1. It monitors the bank in maintaining the cash balance.
2. Loans are not just given to profit-making organisations but also to small cultivators and small scale industries.
3. RBI maintains a periodic report of other banks regarding the amount loaned to people.
4. It also keeps a regular check on the interest rates set for loans in public sector banks.

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
×