Q. 173.7( 6 Votes )

In what ways does

Answer :

Reserve Bank of India is the central banking institution, which regulates the monetary policy of the Indian economy. RBI is an institution of national importance and the pillar of the surging Indian economy.


1. frames the regulations for banks in India.

2. Supervises the commercial banks

3. It monitors that the banks have minimum capital balance.

4. The RBI ensures that the loans are given to everyone by the banks including the small borrowers, and not just to the profit-making business.

5. RBI ensures that the banks do not lend more money than they are supposed to.

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