Regulators of Banks and Financial Institutions

Regulators of Banks and Financial Institutions

Welcome to .As we all know that RBI Grade B Officer exam is the biggest target for of a aspirant life.So If you are preparing for RBI Grade B Exam then yo should know who is the Regulator of banks and financial institutions, How it works? In this post we discussed regulators of banks and financial institutions.So Let’s begin the topic:-

Regulators of Banks and Financial Institutions In India

The financial system in India is regulated by independent regulators in the field of banking, insurance, capital market, commodities market, and pension funds.   However, Government of India plays a significant role in controlling the financial system in India and influences the roles of such regulators at least to some extent.

The following are five major financial regulatory bodies in India.

1. Reserve Bank of India

  • Reserve Bank of India is the apex monetary Institution of India.
  • It is also called the Central Bank of India.
  • The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
  • The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.
  • Though originally privately owned, since nationalization in 1949, the Reserve Bank of India is fully owned by the Government of India.
  • RBI is the financial regulator of all the financial institutions like public sector banks, private sector banks, RRBs, Cooperative banks and all type of non-banking financial companies.
  • The main function of RBI is to control the inflation of the country keeping in mind the growth of the country.

1. Formatted on April 1, 1935.

2. Head office is in Mumbai

3. Governor – Urjit Patel

4. Deputy Governors :-

  • Shri M. K. Jain
  • Shri B.P. Kanungo
  • Dr. Viral V. Acharya
  • Shri N. S. Vishwanathan

2. Securities and Exchange Board of India

  • SEBI also form a major part under the financial body of India.
  • This is a regulator associated with the security markets in Indian Territory.
  • Established in the year 1988, the SEBI Act came into power in the year 1992.

SEBI is an authority to regulate and develop the Indian capital market and project the interest of investors in the capital market. Controller of Capital Issues has been replaced by the SEBI, an authority under Capital Issue (Control) Act, 1947.

1. Formatted on 30th Jan, 1992.

2. Replaced Capital issue control Act, 19747

3. Head office is in Mumbai

4. Branch offices: Deli, Kolkata & Chennai

3. Insurance Regulatory and Development Authority

  • The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India.
  • It was formed by an Act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements.
  • It headquarter is located in Hyderabad
  • It comprised of the Indian Parliamentary Act and was passed duly by the Indian government.
  • Insurance Regulatory and Development Authority of India is the regulator of all private sector insurance business and public sector insurance business in India.
  • IRDA issues guidelines for various insurance companies.
  • It regulates the functioning of insurance companies to direct them to work in the public interest.

1. Established in 1999.

2. Head office is in Hyderabad

3. Chairmen – Subhash Chandra Khuntia

4. Forward Market Commission India (FMC)

  • Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India.
  • This Commission allows commodity trading in 22 exchanges in India, out of which three are national level.
  • Working in collaboration with the Finance Ministry.
  • The main objective of this body is to advise the Central government on matters of the Forwards Contract Act, 1952.
  • The Act provides that the Commission should consist of minimum two and maximum four members appointed by the Central Government.
  • The chairman of the FMC is nominated by the central government.

1. Founded :-  1953

2. Sector :- Commodity Market

3. Head office is in Mumbai

4. Parent Agency :- Ministry of Finance

5. Chairmen :- Ramesh Abhishek

5. Pension Fund Regulatory and Development Authority (PFRDA)

  • The present chairman of PFRDA is ‎Hemant Contractor.
  • PFRDA is head-quartered at New Delhi with various regional offices spread across the country.
  • The Pension Fund Regulatory and Development Authority (PFRDA) is a pension regulatory authority which was established by Government of India on August 23, 2003.
  • PFRDA is authorized by Ministry of Finance, Department of Financial Services. The Union Parliament passed the IPRDA [Interim Pension Fund Regulatory & Development Authority] Bill in February 2003 as a Budget Announcement, approved by the then President of India, Dr. APJ Abdul Kalam.
  • Tamil Nadu became the first state to implement NPS (National Pension Scheme) for its newly appointed employees from the financial year 2003–04, under the chief ministership of Jayalalitha.
  • PFRDA promotes old age income security by establishing, developing and regulating pension funds and protects the interests of subscribers to schemes of pension funds and related matters.
  • The Pension Fund Regulatory & Development Authority Act was passed on 19th September, 2013 to replaced the old PREDA Bill and the same was notified on 1st February, 2014, thus setting up PFRDA as the regulator for pension sector in India.
  • PFRDA is regulating the National Pension Scheme (NPS)*, subscribed by employees of Govt. of India, State Governments and by employees of private institutions/organizations & unorganized sectors.
  • PFRDA is responsible for appointment of various intermediate agencies such as Central Record Keeping Agency (CRA), Pension Fund Managers, Custodian, NPS Trustee Bank, etc. 
  • The President of India is the Guardian of PFRDA of India, subject to his Financial Emergency Powers, as per the Articles of Indian Constitution. PFRDA now has Full Autonomy & functioning Independently from the F.Y. 2014-15.
  • Founded :-  23, August 2003
  •  Sector :- Pension
  •  Head office is in New Delhi
  •  Parent Agency :- Department of Financial Services
  •  Chairmen :- Hemant G. Contractor

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