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The 'RBI plays a crucial role …

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The 'RBI plays a crucial role in controlling the formal sector loans.' Explain.

    • Posted by Shresth Gupta 5 years ago

    CBSE > Class 10 > Social Science
    • 3 answers

    Tushar Motwani 5 years ago

    1. RBI plays an important role in controlling the formal sector loans. 2. Formal sectors of loans like banks have to submit all information to RBI about the loans given by it such as about collaterol demanded,interest rate charged by the bank on that loan. 3. RBI can enquiry to banks and cooperatives about anything related to loans. Hope this answer will help you .......HAPPY TO HELP??

    3Thank You

    King?Adithya H. M.. 5 years ago

    Bank has to submit information to the RBI on how much they are lending , to whom and what interest rate they are lending to borrowers & etc. The bank maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance

    1Thank You

    Yogita Ingle 5 years ago

    • The RBI (Reserve Bank Of India) ensures that the banks give loans not just to profit-making businesses and traders,but also to small scale industries,small borrowers.
    • Bank has to submit information to the RBI on how much they are lending , to whom and what interest rate they are lending to borrowers & etc.
    • The bank maintain a minimum cash balance out of the deposits they receive.
    • The RBI monitors the banks in actually maintaining cash balance.

    3Thank You

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