'1. The reserve bank of India supervises the functioning of formal sources of loans 2. The RBI monitors of banks in actually maintaining cash balance 3. The RBI sees that the bank give loans not just to profit making business and traders but also to small cultivators, small-scale industries to small borrowers etc. 4. Periodically banks have to submit information to the RBI on how much they are lending ,to whom ,at what interest rate ,etc.