The Reserve Bank of India (RBI) regulates commercial banks in all of the following matters Liquidity of assets: The RBI uses various tools like Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) to ensure banks maintain a certain level of liquid assets to meet withdrawal demands and facilitate smooth functioning of the financial system. Branch expansion: The RBI grants licenses to banks for opening new branches to ensure wider access to banking services across the country, particularly in underserved areas. Merger of banks: Mergers can be a way to strengthen the banking sector. The RBI carefully evaluates proposed mergers to ensure financial stability and protect depositors' interests. Winding-up of banks: In case a bank experiences severe financial difficulties and poses a risk to the system, the RBI, in consultation with the government, can initiate the process of winding up the bank to protect depositors and maintain financial stability.