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
(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.
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