Ans.
(i) In India, the Reserve Bank of India issues currency notes on behalf of the
Central Government.
(ii) The RBI supervises the functioning of formal sources of loans.
(iii) The RBI monitors the banks in actually maintaining cash balance.
(iv) The RBI sees that the banks give loans not just to profit-making businesses
and traders but also to small cultivators.
(v) Any other relevant point.
(Any two points)
Unit – Economics, Ch – Money and Credit
