Which organisation monitors the banks in actually maintaining cash balance?

Options

A. State Bank of India
B. Reserve Bank of India
C. Grameen Bank of India
D. None of these

Answer

B

Explanation

The Reserve Bank of India sees that the banks maintain a minimum cash balance out of the deposits they receive. It monitors that the banks actually maintain the cash balance. Similarly, it 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.