Here's your answer bud,

(i) The Commercial banks are required to maintain a minimum cash balance out of the deposits they receive.

(ii) The RBI monitors that the banks actually maintain the cash balance.

(iii) The RBI sees that the banks give loan not just to profit-making businesses and traders but also to small cultivators, small-scale industries, small borrowers, etc.

(iv) Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.

(V) RBI fixes the rate of interest which is accepted by all the banks in the country-commercial and national banks. it also controls the flow of currency in the economy to maintain the stability of the currency.

Upvote and lemme know if that helped :)

The Reserve Bank of India (RBI) plays a crucial role in supervising the functioning of banks in the country to ensure financial stability, integrity, and consumer protection. The RBI's supervisory role is primarily aimed at maintaining the soundness of banks and preventing systemic risks. Let's delve into the details of how the RBI supervises the functioning of other banks in India:

**1. Licensing and Regulation:**
The RBI is responsible for granting licenses to banks to operate in India. It sets the eligibility criteria, conducts due diligence, and assesses the financial strength and management capability of the applicants before granting or renewing licenses. The central bank also regulates the entry of foreign banks into the Indian market.

**2. On-site Inspections:**
The RBI conducts periodic on-site inspections of banks to assess their financial health, risk management practices, compliance with regulations, and corporate governance standards. These inspections involve scrutinizing the bank's books, records, and operations, and assessing the adequacy of its internal control mechanisms.

**3. Off-site Surveillance:**
In addition to on-site inspections, the RBI performs off-site surveillance through regular monitoring and analysis of banks' financial statements, key ratios, and other relevant data. This helps the central bank identify emerging risks, vulnerabilities, and areas of concern in a timely manner.

**4. Supervisory Reporting:**
Banks are required to submit various reports to the RBI on a periodic basis. These reports include financial statements, risk management reports, compliance reports, and other regulatory disclosures. The RBI uses this information to monitor the banks' performance and adherence to regulatory norms.

**5. Prudential Norms:**
The RBI establishes prudential norms and guidelines that banks must adhere to, such as capital adequacy requirements, provisioning norms, exposure limits, asset classification, and income recognition standards. These norms are designed to ensure the financial soundness and stability of banks.

**6. Corporate Governance Oversight:**
The RBI places significant emphasis on corporate governance within banks. It sets guidelines for board composition, director qualifications, risk management committees, and internal control mechanisms. The central bank ensures that banks have robust corporate governance practices in place to safeguard the interests of stakeholders.

**7. Enforcement Actions:**
If a bank is found to be non-compliant with regulatory requirements or engaged in fraudulent activities, the RBI has the authority to take enforcement actions. These actions may include imposing penalties, removing or restricting bank management, and even revoking the bank's license if necessary.

**8. Collaborative Approach:**
The RBI maintains regular communication and collaboration with banks through various forums, including meetings, seminars, and consultations. This enables the central bank to understand the challenges faced by banks and provide necessary guidance and support.

In conclusion, the Reserve Bank of India supervises the functioning of other banks through a comprehensive framework comprising licensing, regulation, on-site inspections, off-site surveillance, supervisory reporting, prudential norms, corporate governance oversight, enforcement actions, and collaborative engagement. Through these measures, the RBI aims to ensure the stability, integrity, and efficiency of the banking system, promoting financial inclusion and safeguarding the interests of depositors and stakeholders.