Key Regulatory authorities of India - Banking Awareness Notes

Mentor for Bank Exams
Banking Awareness Notes 


Financial Sector Regulators

Reserve Bank of India

1. Established on: 1935
2. Nationalisation: 1949
3. Headquarters: Mumbai
4. Governor: Urjit Patel
5. Functions:
i) Issue of currency
ii) Custodian of Foreign Exchanges
iii) Credit Control
iv) Banker of Banks
v) Banker, agent and advisor to the government
vi) Supervision of Banking and Financial Sector
vii) Regulation and Supervision of Payment System
6. Umbrella Acts:
i) Reserve Bank of India Act, 1934
ii) Banking Regulation Act, 1949

Capital Market Regulator

Securities and Exchange Board of India (SEBI)

1. Established on: April 1988
2. Statutory Status: April 12, 1992
3. Headquarters: Mumbai
4. Chairman: Upendra Kumar Sinha
5. Functions:
A) Regulatory Functions:
i) Registration of brokers, subbrokers, Fund managers, underwriters, Banker to Issue, Debenture Trustee, Portfolio Manager Foreign Institutional Investors (FII’s), Custodian of Securities, Venture Capital Funds.
ii) Registration of collective investment schemes and Mutual Funds.
iii) Regulation of stock exchanges and other Self-Regulatory Organisations (SRO’s) merchant bankers etc.
iv) Prohibitions of all fraudulent and unfair trade practices.
v) Controlling Insider Trading and take over bids and imposing penalties for such practices.
B) Development Functions
i) Investor Education
ii) Training of intermediaries
iii) Promotion of fair practices and code of conduct for all SRO’s
iv) Conducting Research and Publishing information useful to all market participants.


Insurance Regulatory and Development Authority (IRDA)

1. Established on: 1999
2. Statutory Status: April 2000
3. Headquarters: Hyderabad
4. Chairman: T.S.Vijayan
5. Umbrella Acts:
i) The Insurance Act, 1938
ii) The IRDA Act, 1999
6. Functions:
i) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.
ii) Protection of the interests of policyholders in matters concerning assigning of policy, nomination of policyholders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance.
iii) Specifying the code of conduct for surveyors and loss assessors.
iv) Promoting and regulating professional organisations connected with the insurance and reinsurance business.
v) Levying fees and other charges for carrying out the purpose of the Act.
vi) Specifying requisite qualifications, code of conduct and practical training for intermediaries or Insurance Intermediaries and agents.
vii) Promoting efficiency in the conduct of insurance business.
viii) Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organisations connected with the insurance business.
ix) Control and regulation of rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisorry Committee under section 64U of the Insurance Act, 1938 (4 of 1938).
x) Specifying the form and manner in which books of accounts shall be maintained and statements of accounts shall be rendered by insurers and other insurance intermediaries.
xi) Regulating investment of funds by insurance Companies.
xii) Regulating maintenance of margin of Solvency.
xiii) Adjudication of disputes between Insurers and Intermediaries or Insurance Intermediaries.
xiv) Supervising the function of the Tariff Advisory Committee (TAC).

Pension Fund Regulatory and Development Authority (PFRDA)

1. Established on: 23rd August 2003
2. Headquarters: New Delhi
3. Chairman: Hemant Contractor
4. Umbrella Act: Pension Fund Regulatory and Development Authority
5. Functions: Regulate the record keeping agencies and fund managers of new pension scheme of Government of India, state governments, public sector organisations and new pension schemes for general public.

Forward Market Commission (FMC)

1. Established on: 1953
2. Headquarters: Mumbai
3. Chairman: Ramesh Abhishek
4. Umbrella Act: Froward Contract (Regulation) Act, 1952.
5. Functions: Regulation of 4 National Commodity Exchange and 21 Commodity Exchanges.