Correct Answer - Option 3 : The Reserve Bank of India
The correct answer is the Reserve Bank of India.
Reserve Bank of India is the apex banking institution of India that regulates the financial sector.
- The Reserve Bank Of India is the apex banking institution.
- It has a basic function “to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.”
- It commenced operations on April 1, 1935, is at the center of India’s financial system. Hence it is called the Central Bank.
- It has a fundamental commitment to maintaining the nation’s monetary and financial stability.
- It started as a private share-holders bank – but was nationalized in 1949, under the Reserve Bank (Transfer of Public Ownership) Act, 1948.
- It is a banker to the Central Government, State Governments, and Banks.
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Key functions of RBI Include:
- Monetary policy.
- Supervision of Banking companies, Non-banking Finance Companies and the Financial Sector, Primary Dealers, and Credit Information Bureaus.
- Regulation of money market, government securities market, foreign exchange market, and derivatives linked to these markets.
- Management of foreign currency reserves of the country and its current and capital account.
- Issue and management of currency.
- Oversight of payment and settlement systems.
- Development of the banking sector.
- Research and statistics.
- finance companies are regulated by RBI.
