RBI is the government body which supervises the functioning of formal sources of loans in India.
Functions of RBI:
- RBI sees that the banks maintain the minimum cash balance or not.
- RBI monitors that the loan is not just given to the profit-making businesses and traders but also to the small borrower.
- RBI asks the banks to submit information like how much they are lending, to whom they are lending and at what rate of interest etc.