The correct option is 2 only
Explanation
The Reserve Bank of India (RBI) acts as the central regulatory authority for the formal banking sector in India. Its supervision is mandated to ensure financial stability, the safety of depositors' funds, and the alignment of banking activities with national economic goals, such as financial inclusion.
Statement-wise Analysis:
- Statement 1 is Incorrect: One of the primary functions of the RBI is to monitor the liquidity position of banks. Banks are required to maintain a minimum cash balance out of the deposits they receive (Cash Reserve Ratio). The RBI supervises banks to ensure they actually maintain this required cash balance to meet potential withdrawal demands from depositors.
- Statement 2 is Correct: The RBI ensures that banks do not lend exclusively to profit-making businesses, large industries, or traders. Through regulations like Priority Sector Lending (PSL), the RBI mandates that a portion of bank credit is directed towards small cultivators, small-scale industries, and small borrowers to promote equitable economic growth.
- Statement 3 is Incorrect: The RBI regulates the formal sector of loans (commercial banks, cooperative banks, etc.). It does not have direct regulatory control over the interest rates charged by the informal sector, which includes moneylenders, traders, employers, relatives, and friends.
Key Takeaway:
The RBI supervises formal credit sources to ensure banks maintain necessary liquidity (cash balance) and provide credit to diverse sections of society, not just large industries. It does not regulate interest rates in the informal credit sector.