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Q.

[[1]] supervises formal sources of loans.


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Detailed Solution

The Reserve Bank of India supervises the formal sources of loans. It is in charge of regulating how official sources of credit operate. It keeps track of the amount that banks maintain for everyday transactions. It makes sure that the banks provide money to small borrowers as well as profitable firms and dealers. Banks are required to periodically provide RBI with information about lending, borrowers, and interest rates. It prevents the bank from managing the company for financial gain solely. It also monitors the interest rates charged for bank-provided credit facilities. The RBI ensures that bank loans are reasonably priced and accessible.
 
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