Login

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

·  The RBI supervises the functioning of formal sources of loans.

It monitors the banks in actually maintaining the cash balance

It sees that banks give loans not just to profit-making businesses & traders.

Banks have to submit information to RBI on how much they’re lending, to whom, at what interest rate etc…

  • 54
View Full Answer

good,,,,,,,,,

  • -24

The second part of the question is not answered. Well here is the answer......

RBI supervises the Indian banks in the following manner:

(i) The Commercial banks are required to maintain a minimum cash balance out of the deposits they receive.

(ii) The RBI monitors that the banks actually maintain the cash balance.

(iii) The RBI sees that the banks give loan not just to profit-making businesses and traders but also to small cultivators, small-scale industries, small borrowers, etc.

(iv) Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.

(V) RBI fixes the rate of interest which is accepted by all the banks in the country-commercial and national banks. it also controls the flow of currency in the economy to maintain the stability of the currency.

 it demands a periodic report from all the banks pertaining to their lending and saving activities..

thumbs up plzzzzzzzz

  • 146

RBI supervises the Indian banks in the following manner:

(i) The Commercial banks are required to maintain a minimum cash balance out of the deposits they receive.

(ii) The RBI monitors that the banks actually maintain the cash balance.

(iii) The RBI sees that the banks give loan not just to profit-making businesses and traders but also to small cultivators, small-scale industries, small borrowers, etc.

(iv) Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.

  • 27
RBI is the head of indian banking stream

it iz necessary bcoz they need to do so for their approach...
  • -9
yes it is necessary
 
  • -28
i is necessory because-
no bank can issue thier own notes or any othe currency.
rbi is the one which controls and manages all the subordinate banks in country
so that any other bank does not set up its own interest rates on loans and other debts....
 
  • 36
Ood question
  • -15
The Reserve Bank of India supervises the functioning of banks in the following ways (a) The RBI monitors the banks in maintaining a minimum cash balance out of the deposits they receive. (b) The RBI sees that the banks give loans not just to profit-making business and traders but also to small cultivators, small scale industries, small borrowers etc. This is done by periodical statements submitted by banks to RBI which contain information regarding how much the banks are lending to whom, at what rate of interest, etc. (c) This supervision is necessary to ensure that equality is preserved in business and industry so that small industries also grow. Also, RBI makes sure that banks do not loan out more money than they are supposed to, as this can lead to crisis situations. An example is the great depression of the 1930s, as it affected the world economy
  • 12
nnknknk
  • -14
jijojojjojo
  • -17
iiininn
  • -16
ninfjvnroibnwernvjew g
  • -17
avbrjblvajkrbvjabr;kvja;bjv
  • -15
emnd ce dv
  • -18
RBI supervises the Indian in following manner: - the commercial banks are required to maintain a minimum cash balance out of deposits that they receive - the RBI monitors that the bank actually maintains the cash balance - the RBI sees that the bank gives loans not just to profit making businesses and traders but also the small cultivators, small scale industries etc - Periodically banks have to submit information to the RBI on how much they are living
  • 5
The reserve bank of India is the head of the banking system in the country.  It supervises, controls and manages all subordinate banks in the country.
  • RBI fixes the rate of interest which is accepted by all banks in the country.
  • It controls the flow of currency in the economy to maintain the stability of the Indian currency.
  • demands periodic report from all banks pertaining to their leading saving activities.
Hope this was helpful.
​Thumbs up if you liked it. (my first answer)
 
  • 4
such a idiotic answer Karthik
  • 4
# answer #$ .😶

  • 12
This is the exact answer...

  • 16
j9D
  • -7
Thumbup plzzz

  • -2
Supervision of the banks by the RBI:-

  • 3
Please find this answer

  • 2
Nice answers Thank you
  • -3
Lavish
  • -3
Refer to this.........Thumbs up👍👍👍👍👍

  • 1
The RBI supervises the functioning of banks in this manner - 
1) It sees whether the banks are maintaining a minimum cash balance of the deposits.

2)  It makes sure that people from all backgrounds receive loans and not only the rich, powerful businessman and traders.

3) The above point is made sure by periodical statements given by the banks to the RBI that contains information about to whom the bank has given loan, at which interest the loan was given,etc.

This is necessary so as to maintain equality of who receives the loans. Our aim is that all industries should grow. Even the small scale industries should be given the advantages of loans . As a result, the country's economy will also grow.

 
  • 1
Hii Harshita which reference book is this
  • 1
Petition
  • 0
social science lesson 3
  • 0
Please find this answer

  • 0
Inglish
  • 0
Rajasthan Gramin Bank
  • 0
analyse the role of Reserve Bank of India
  • 0
give information in the cash receipts journal
  • 0
What are you looking for?