State the Role of the Reserve Bank of India

The Reserve Bank of India issues currency notes on behalf of the central government. As per Indian law, no other individual or organisation is allowed to issue currency.
The Reserve Bank of India supervises the functioning of formal sources of loans.
The RBI monitors the banks in actually maintaining cash balance.
The RBI 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.
Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.

Remember it with a Visual Mnemonic

Now let’s remember this lesson with the help of a visual mnemonic. A visual mnemonic is a picture that has cues to remind you the points in the lesson. The mnemonic for this lesson is provided below. Remember to scroll the picture gallery using the arrow on the right.