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The Reserve Bank of India monitors the cash balance of different bank. The Reserve Bank sees that the banks give loans not just to earn profit but also to the small cultivators and small scale industries. The Reserve Bank of India sees that the different banks periodically submit information to it about how much they are lending to whom and at what interest rate. Such supervision is necessary keep them under control and also to see that there is no mismanagement or misappropriation of any kind in their working.

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