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[[1]] supervises the functioning of the banks in India.

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Detailed Solution

The Reserve Bank of India supervises the functioning of all the banks in India.
The RBI supervises the banks in the following ways:

Banks must periodically report lending, borrowers, and interest rates to the RBI.

It ensures that banks provide loans to wealthy business people or traders and poor or middle-class people who need money.

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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