Seamer ‘The Regulators of Banks and Financial Institutions in India are delegated with the authority of regulating as well as developing the financial sector in the country. Hence, the regulators of banks and financial Institutions like the Reserve Bank of India (RBD), Securities and Exchange Boardof India (SEI, and Insurance Regulatory and Development Authority of India (IRDAD,ete. have beencreated to regulate the frameworkof the country’s financial system. DownloadBest4000 Smart QuestionForBank FreeEbook: Click Here! Download Reading ComprehensionQuestionsfor Bank Exams FreeEbook- Click Here! Downloadsimplification QuestionsForBankExam FreeEbook- Click Here! Download Quadratic Equation Questionsfor BankExam FreeEbook- Click Here! Download Puzzlesfor Bank Exams FreeEbook- Click Here! Besides, these institutions are also looked upon when it comes to safeguarding the best interest of the depositors) savers, In this article, let us explore more about the roleand importance of each of these Regulators of Banks and Financial Institutions. in India along with other important details, Check GX Prep Notes for Banking Exams here! Check your Banking Knowledge with our Eree Live Tests. Regulatorsof Banks & FinancialInstitutionsin India- Meaning & Importance ‘The regulation of banks and financial institutions “in India is controlled by the Banking Regulation Act of 1949. Initially passed as the Banking Companies Act 1949, the act actually came into effect from 16th March, 1949, However. the act’, name was changed to the Banking Regulation Act from 01st March 1966 onwards, The Act regulates all banking institutions in India, It gives the RBI the charge to license banks and have a control over the shareholding, supervising the appointment of the management and the Board,regulating the operationsof banks, controlling moratorium, imposing penalties, and so on. Itis imperative for candidates aspiring a banking job to be well aware of how the financial institutions work and regulate in India, As far as the competitive examinations are concerned,candidates can expect questions like the location ofthe headquarters, Chairpersonof the institutions, year of their establishments, their’ prime roles, and so on. Therecan even be questions onthe Banking Regulation Act and its recent developments in the mains exam and the interview round. For that, check the belowdetailed Finance study notes on Regulators of Banks and Financial Institutions in India to know all the insights. ‘Name ofthe Institution | Sector Chairperson Headquarters Reserve Bank of India Banking & Finance Mr. Shaktikanta Das Bombay «RBD) Securities & Exchange Stock Market Mr. Ajay Tyagi Bombay Boardof India (SEBD) Insurance Regulatory & — | Insurance Mr. Subhash Chandra Hyderabad Development Authority of Khuntia India GRDAD Pension Fund Regulatory | Pension Mr. Supratim New Delhi & Development Authority Bandyopadhyay (PFRDA)Forward Markets Commodity Market Ramesh Abhishek Commission Bombay Clear IBPS PO Exam With Super Coaching Get 6 Months SuperCoaching@ just $3999 3798 @ vourTotalsavings3201 Purchase Now Want to know more about this Super Coaching ? Explore SuperCoaching Now Regulatorsof Banks and FinancialInstitutionsin India At present, there are five prime Regulators of Banks and Financial Institutions in India, They are: Reserve Bank of India Securities and Exchange Boardof India Pension Fund Regulatory and Development Authority Forward Markets Commission Insurance Regulatory and Development Authority of India Now let us take a quick lookat all the regulators of banks and financial institutions in India one byone. Reserve Bank of India (RBI) Also known as the apex bank, the Reserve Bank of India oF RBI, s the central bank of the country. It was established in Calcutta on O1st April, 1935, inline with the provisions of the RBI Act 1934. Later on, the RBI headquarters were permanently shifted to Bombayin 1937. Its Governor presidesin the Central Office where all the policies are formulated and functions are undertaken, The RBI preamblestates the following: generally to operate the currency and credit system of the country to its advantage.” Given beloware some of the primary functions of the RBI: Issuing of banknotes Custodian of cash reserves of the commercial banks Acting as a banker to the government Regulation and supervision of co-operative banks Consumer protectonand promotion Banking & issuing functions Controlling of credit Custodian of foreign exchange reserves Lender of the last resort Public debtfunctions Check History of Banking in India for GK preparation! Cearnritiec & Exchange Rnard of India (CERN to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India andThe Securities and Exchange Boardof India, better known as SEBI, was established under the SEBI Act 1992 on 12th April, 1992. A statutory bodyowned by the government of India, the SEBIis directly responsible to protectthe interests of the investors in securities exchange. Itis also entrusted with the powerto regulate the securities market. The SEBIis headquartered in Bombay, while branch offices are widespread across Chennai, Delhi, and Kolkata, Its basic functions are: Regulating the securities market Exercising the control over new issues registration Regulating of market intermediaries Regulating listing ofsecurities and mutual funds Prohibiting unfair trade practices Imposing code of conduct on brokersunderwriters, etc. Insurance Regulatory and Development Authority of India (IRDAD. The IRDAI (insurance Regulatory & Development Authority of India) was established under the Insurance Regulatory and Development Authority Act 1999, Itis important to know about IRDAI when it comes to how-to preparefor Bank exams. An autonomous statutory body. the IRDAIis responsible for the regulation and promotionof the insurance and reinsurance institutions in India. Itis headquartered in Hyderabad. The IRDAT management comprises 10 members, that is, a Chairman, four parttime membersand five full-time members that are appointed by the government of India. The primary objectives of the IRDATinclude promoting the competition so as to increase customer satisfaction. by way of enhanced consumer choices with lower premiums. Itis also vested with, the duty to ensure the financial security of the insurance industry. Pension Fund Regulatory & Development Authority (PFRDA) When it comes to Regulators of Banks and Financial Institutions, the Pension Fund Regulatory and Development Authority (PFRDA)is another important one. Itis a statutory regulatory body,entrusted with the responsibility of promoting, developing,and regulating the pension industry in India. Headed by Mr. Supratim Bandopadhyay,the PFRDA was established on 23rd August, 2003 by the government of India. It is headquartered in Delhi. Under the chairperson, the structure of the organization consists of 3-full time members from finance, law, and economics, alongside a chief vigilance officer. Solve here: Financial Awareness Quiz for bank exams! Forward Markets Commission Headquartered at Bombay, the ForwardMarkets Commission (FMC) is overseen by the Ministry of Finance, The FMC is a legal institution established under the Forward Contracts (Regulation) Act of 1952. This Act provides for a provision that the Commission should comprise ofat least 2 and maximum four members to be appointedby the Central Government. That is why the chairman of the ForwardMarkets Commission is also nominated by the Central Government, The FMCis the chief regulator of the forwardand futures market in India and also comes under the Ministry of Current Affairs, Foodand Public Distribution as the futures traded in India are traditionally the foodcommodities. The Commission allows trading in 22 exchanges PAN-India, out of which, three are of national level. Know all about lternet Banking Awareness for banking exam prep! QuasiregulatoryInstitutions Now that we have seen the most prominent Regulators of Banks and Financial Institutions in India, lets also check a couple of Quasi-Regulatory Institutions. ‘These are nothing but government regulatory organizations that carry out regulatory functions on particular areas of the economy. A few of the chief Quasi-Regulatory Institutions are National Bank for Agriculture and Rural Development (NABARD SI ve ExportImportBank of India (EXIM Bank) National Housing Bank (NHB Ministry of Corporateaffairs ‘We hope that the above Finance study notes on Regulators of Banks and Financial Institutions provesto be beneficial in your competitive exam preparation. For more such exploratory study notes, do download the TestbookApn Get the app today to access over hundreds of study note pafsalong with preparatorymaterials like practice sets, mock tests, quiz, puzzles,etc.! Regulatorsof Banks & FinancialInstitutionsin India FAQ’sMore Articlesfor Banking Awareness > LicBankingAwarenessNotes GIC Ba warenessNotes ? ULIP Banking AwarenessNotes > ECGC Banking AwarenessNotes > ParaBanking Cross SellingUp Reportan Error ales The Complete Exam Preparation By fone