Question
Download Solution PDFWhich financial institution is responsible for regulating and supervising commercial banks in India?
Answer (Detailed Solution Below)
Option 3 : RBI
Detailed Solution
Download Solution PDFThe 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.