Which financial institution is responsible for regulating and supervising commercial banks in India?

The correct answer is - RBI

Key Points

• RBI
  • The Reserve Bank of India (RBI) is the central banking institution of India.
  • It was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
  • The RBI is responsible for regulating and supervising the financial system, including commercial banks in India.
  • It ensures the country's monetary stability and manages the issuance and supply of the Indian rupee.
  • RBI formulates and implements monetary policy to maintain price stability and promote economic growth.
  • It also acts as the banker to the government and commercial banks.

Additional Information

• SEBI
  • Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.
  • It was established on April 12, 1992, in accordance with the provisions of the SEBI Act, 1992.
  • SEBI's primary functions include protecting investor interests, promoting and regulating the securities market, and ensuring its orderly and efficient functioning.
• IRDAI
  • Insurance Regulatory and Development Authority of India (IRDAI) is the regulatory body for the insurance sector in India.
  • It was constituted by the Insurance Regulatory and Development Authority Act, 1999.
  • IRDAI's mission is to protect the interests of policyholders and ensure the growth of the insurance industry.
• NABARD
  • National Bank for Agriculture and Rural Development (NABARD) focuses on the development of agriculture and rural areas in India.
  • It was established on July 12, 1982, under the NABARD Act, 1981.
  • NABARD provides and regulates credit and other facilities to promote and develop agriculture, small-scale industries, and other allied activities in rural areas.