Banking Awareness 2017 – Financial Regulators of India



Hello and welcome to exampundit. So here are the Financial Regulators in India. This article was written by our mentor “Ruchi”.

RBI

Full Form– Reserve Bank Of India


Establishment- April 1, 1935 as per the Reserve Bank
of India Act, 1934 on the recommendation of Hilton Young Commission.

Nationalization- 1st Jan 1949


Headquarters- Mumbai


Emblem of RBI- Panther and Palm Tree.


Governors – Urjit
Ravindra Patel (2016 – )

Former Governor- Dr.
Raghuram Rajan- 23rd Governor (2011-2016)


Functions-
  1. Sole Authority
    to issue Bank Notes in India.
  2. Prints
    currency in 15 languages.
  3. At present, 90
    bank + Bhartiya Mahila Bank in the second schedule of RBI Act,  1934.
  4. It formulates,
    implements and monitors the monetary policy as well as it has to ensure an
    adequate flow of credits to productive sectors.
  5. Bankers to the
    Government: Performs merchant banking function for the central and the state
    governments, also act as a banker.
  6. Transfer funds
    and settle inter-bank transactions.
  7. All Bank
    operating in the country have accounts with the Reserve Bank.
  8. It acts as a
    custodian and manages the Foreign Exchange Act, (FEMA) 1999.
  9. RBI buys and sells foreign currency  to maintain the exchange rate of Indian Rupee
    v/s foreign currencies like the US Dollar, Euro, Pound and Japanese Yen.
  10. Credit Control  is a major weapon of the RBI used to control
    Demand  & Supply of money in the
    economy.

Other Functions-
  • RBI has a
    separate Department of statistics for collecting, compiling and disseminating
    statistical information and conducting research related to bank and other
    financial sectors of the economy including supply of money, credit banking
    operation and foreign exchange.
  • RBI act and
    Bank Act have both conferred extensive powers of regulations & supervisions
    to the RBI over commercial & cooperative banks to check malpractices &
    protect interests of the investors.
  • RBI has been
    aiding development & promoting saving & Banking habits. Development of
    the institutional agriculture and other rural activities has been an area of
    focus right from its inception.

Policy Rates at
present- as of 4 January, 2017
  • Repo Rate– 6.25%
  • Reverse Repo rate– 5.75%
  • Marginal Standing Facility Rate or MSFR–
    6.75%
  • Bank Rate– 6.75%
  • CRR- 4%
  • SLR- 20.75%
  • Base Rate: 9.30% – 9.65%
  • MCLR (Overnight): 8.65% – 9.00%
  • Saving Deposit Rates– 4.00%
  • Term Deposit Rate> 1year– 8.00-8.50%



SEBI

Full form- Securities and Exchange Board of
India.

Establishment– Set up by GOI in 1988,
April 2, 1992 (Legal Status)
Jurisdiction-  Government of India.
Headquarters- Bandra-Kurla Complex, Bandra, Mumbai.

Head of SEBI- Upendra Kumar Sinha –Chairman and MD
Opening Remarks– “…to
protect the interests of investors in securities and to promote the development
of, and to regulate the securities market and for matters connected therewith
or incidental thereto”


Functions of SEBI-
  • Regulating
    the business in stock exchanges and any other securities markets.
  • Registering
    and regulating the working of stock brokers, sub- brokers, share transfer
    agents, bankers to an issue, trustees of trust deeds, registrar to an issue,
    merchant, bankers, portfolio managers, investment advisers.
  • Prohibiting
    fraudulent and unfair trade practices relating to securities markets.
  • The duty of
    the Boards to protect the interests of investors in securities and to regulate
    the securities market.



Responsibilities of SEBI

SEBI has to be responsive to the needs
of three groups, which constitute the market:
  • The issuers
    of securities
  • The investors
  • The market
    intermediates

Departments of SEBI
  1. Market
    Intermediaries Regulation and supervision Department     ( MIRSD)
  2. Market
    Regulation Department
    (MRD)
  3. Derivatives
    and New Product Department
    (DNPD)
  4. Corporation
    Finance Department
    (CFD)
  5. Investment
    Management Department
    (IMD)
  6. Integrated
    Surveillance Department
    (IVD)
  7. Legal Affairs
    Department
    (LAD)


IRDAI


Full form: Insurance Regulatory and
Development Authority of India
Establishment– By an act enacted by Indian
Parliament known as IRDA Act 1999 and was amended in 2002.
Headquarters– Hyderabad, Telangana
Head of IRDA- Mr. T.S. Vijayan –Chairman
Opening Remarks- “to protect the interests of the
policyholders, to regulate, promote and ensure orderly growth of the insurance
industry and for matters connected therewith or incidental thereto.”
Functions of IRDA
1.                 
Registration
(licensing) including renewal of registration of insurance companies.
2.                 
Licensing
of insurance intermediaries such as agents, surveyors and loss assessors, third
party administrators, brokers, etc.
3.                 
Official
approval of agents training institutions.
4.                 
Monitoring
all non-tariff products including pricing of products, terms and conditions
thereof, etc.
5.                 
Supervision
of the functioning of the companies and intermediaries including review of
company annual statements.
6.                 
Formulation
of regulations.
7.                 
Enforcement
of discipline.
PFRDA

Full form-Pension Fund Regulatory and Development Authority

Establishment– August 23, 2003 by GOI.
Headquarters– New Delhi
Parent Agency- Ministry of Finance
Head of PFRDA- Shri Hemant G Contractor. Chairman
Opening Remarks- “To establish
and promote pension system to serve the old age income needs of all citizens
through guided development and prudent regulation of the pension industry, with
focus on institution-building, capacity development and enabling framework
for innovations in products, schemes and programs across all stakeholders and
market participants, in the best interest of the subscribers and the pension
system.”
Functions of PFRDA       

The functions and powers of the Authority includes-
1.   Regulating the National Pension System and the pension schemes.
2.   Approving the schemes, terms and conditions thereof and laying down norms of the management of the corpus of the pension funds.
3.   Registering and regulating intermediaries,
4.   Issuing to an intermediary, on application, a certificate of registration and renewing, modifying, withdrawing, suspending or cancelling such registration.
5.   Protecting the interests of subscribers by- (a) ensuring safety of the contribution of subscribers to various schemes of pension funds, (b) ensuring the intermediation and other operational costs under the National Pension System are economical and reasonable.
6.   Establishing mechanism for redressal of grievances of subscribers to be determined by regulations.
7.   Promoting Professional organizations connected with the pension system.
8.   Adjudication of disputes between intermediaries and between intermediaries and subscribers.
9.   Collecting data and requiring the intermediaries to collect such data and undertaking, commissioning studies, research and projects.
MCA

Full Form- Ministry of Corporate affairs

Jurisdiction- Republic of India

Headquarters- Shastri Bhawan, New Delhi

Agency Executive- Mr. Arun Jaitley, Minister of Corporate Affiars

The Ministry
of Corporate Affairs (MCA)
is an Indian government ministry.
The
Ministry is primarily concerned with administration of the Companies Act 2013,
the Companies Act 1956, the Limited Liability Partnership Act, 2008 & other
allied Acts and rules & regulations framed there-under mainly for
regulating the functioning of the corporate sector in accordance with law. 
It is responsible mainly for regulation of Indian
enterprises in Industrial and Services sector. 

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Regards

Team ExamPundit