Table of contents |
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Introduction |
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Regulations over Commercial Banks |
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Regulations over Co-operative Bank |
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Regulations over Non-Banking Finance Companies |
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Now, let's explore the primary functions carried out by the Reserve Bank of India. Established on April 1, 1935, under the Reserve Bank of India Act, 1934, the RBI, as the country's central bank, fulfills the following roles:
The primary provisions of the Banking Regulation Act, 1949, which oversee commercial banks, are outlined as follows:
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RBI as a Regulator
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Reserve Bank of India Act, 1934:
The Reserve Bank of India Act grants the following powers under Chapter III B:
Directions for NBFCs Accepting Public Deposits (Reserve Bank):
Under Chapter III B, the RBI issued directions to NBFCs regarding the acceptance of public deposits. These directions were revised significantly in January 1998 to incorporate prudential norms. Key features of the RBI Directions include:
Prudential Norms for NBFCs:
The RBI issued guidelines in June 1994 prescribing prudential norms for NBFCs. These norms include:
Overall, the Reserve Bank of India has established a comprehensive regulatory framework for NBFCs to ensure their stability and protect the interests of depositors.
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1. What are the regulations imposed by the RBI on commercial banks? | ![]() |
2. How does the RBI regulate co-operative banks? | ![]() |
3. What regulations are applicable to Non-Banking Finance Companies (NBFCs)? | ![]() |
4. How does the RBI act as a regulator in the financial sector? | ![]() |
5. What role does the RBI play in maintaining the stability of the financial system? | ![]() |