Consider the following statements regarding Board for Financial Supervision. The Reserve Bank of India performs the supervisory function under the guidance of the Board for Financial Supervision (BFS). It undertakes supervision of Scheduled Commercial and Co-operative Banks, Small Finance Banks and Payments Banks. The Board is chaired by the Deputy Governor of RBI.Which of the above statements is/are correct?a)1 onlyb)1, 2c)2, 3d)1, 3Correct answer is option 'B'. Can you explain this answer?

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Consider the following statements regarding Board for Financial Supervision.

The Reserve Bank of India performs the supervisory function under the guidance of the Board for Financial Supervision (BFS).
It undertakes supervision of Scheduled Commercial and Co-operative Banks, Small Finance Banks and Payments Banks.
The Board is chaired by the Deputy Governor of RBI.

Which of the above statements is/are correct?

a)
1 only
b)
1, 2
c)
2, 3
d)
1, 3

Correct answer is option 'B'. Can you explain this answer?

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Test: January 2023 Weekly Current Affair - 2

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Consider the following statements regarding Board for Financial Superv...

The Reserve Bank of India performs the supervisory function under the guidance of the Board for Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India under the Reserve Bank of India (Board for Financial Supervision) Regulations, 1994.
The primary objective of BFS is to undertake consolidated supervision of the financial sector comprising Scheduled Commercial and Co-operative Banks, All India Financial Institutions, Local Area Banks, Small Finance Banks, Payments Banks, Credit Information Companies, Non-Banking Finance Companies and Primary Dealers.
The Board is constituted by co-opting four Directors from the Central Board as Members and is chaired by the Governor. The Deputy Governors of the Reserve Bank are ex-officio members. One Deputy Governor, traditionally, the Deputy Governor in charge of supervision, is nominated as the Vice-Chairman of the Board.

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Consider the following statements regarding Board for Financial Superv...

The correct answer is option 'B': 1, 2.

Explanation:
The Board for Financial Supervision (BFS) is an important body under the Reserve Bank of India (RBI) that carries out the supervisory function for various financial institutions. Let's analyze each statement to understand the correct answer:

1. The Reserve Bank of India performs the supervisory function under the guidance of the Board for Financial Supervision (BFS).
This statement is correct. The BFS is responsible for overseeing and regulating the functioning of various financial institutions in India. It provides guidance and sets policies for the RBI's supervisory activities.

2. It undertakes supervision of Scheduled Commercial and Co-operative Banks, Small Finance Banks and Payments Banks.
This statement is also correct. The BFS is responsible for supervising different types of banks, including Scheduled Commercial Banks, Co-operative Banks, Small Finance Banks, and Payments Banks. These banks play a crucial role in the Indian financial system, and the BFS ensures their compliance with regulatory requirements.

3. The Board is chaired by the Deputy Governor of RBI.
This statement is incorrect. The BFS is not chaired by the Deputy Governor of RBI. In fact, the BFS is headed by the Governor of RBI. The Governor is the highest-ranking official of the RBI and has the overall responsibility for the functioning of the central bank. Therefore, statement 3 is incorrect.

In conclusion, statements 1 and 2 are correct, while statement 3 is incorrect. Hence, the correct answer is option 'B': 1, 2.

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Consider the following statements regarding Board for Financial Supervision. The Reserve Bank of India performs the supervisory function under the guidance of the Board for Financial Supervision (BFS). It undertakes supervision of Scheduled Commercial and Co-operative Banks, Small Finance Banks and Payments Banks. The Board is chaired by the Deputy Governor of RBI.Which of the above statements is/are correct?a)1 onlyb)1, 2c)2, 3d)1, 3Correct answer is option 'B'. Can you explain this answer?

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