10 TH CBSE SST Describe the significance of the Reserve Bank of India.

 

Ans:
The significance of the Reserve Bank of India in the Indian economy:
1. RBI issues currency notes on behalf of the central government.
2. It supervises the functioning of formal sources of loans.
3. The RBI monitors that the banks actually maintain the cash balance.
4. The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small
cultivators, small scale industries, to small borrowers etc.
5. Periodically, banks have to submit information to RBI