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Q.

[[1]] is the government body that supervises the functioning of formal sources of loans.


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Detailed Solution

The Reserve Bank of India is the government body that supervises the functioning of formal sources of loans.
The RBI supervises the banks in the following ways:
1)      Banks must periodically report lending, borrowers, and interest rates to the RBI.
2)      It ensures that banks provide loans to rich businessmen or traders and poor or middle-class people who need money.
3)      It monitors the balance kept by banks out of deposits made by the people in the bank for day-to-day transactions.
 
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