which government body supervise the function …
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Posted by Muruga Doss 6 years, 6 months ago
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Gaurav Seth 6 years, 6 months ago
The Reserve Bank of India supervises the functioning of formal sources of loans. It does that in the following ways:
•The RBI monitors that the banks actually maintain a minimum cash balance out of the deposits they receive.
•RBI ensures that the banks give loans 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 rates.
•RBI can pull up any banks if it is flouting the norms and regulations related to lending of loans.
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