Banking Awareness 2017 – Financial Regulators of India

Exampundit.in

4 years ago

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-

Sole Authority
to issue Bank Notes in India.
Prints
currency in 15 languages.
At present, 90
bank + Bhartiya Mahila Bank in the second schedule of RBI Act, 1934.
It formulates,
implements and monitors the monetary policy as well as it has to ensure an
adequate flow of credits to productive sectors.
Bankers to the
Government: Performs merchant banking function for the central and the state
governments, also act as a banker.
Transfer funds
and settle inter-bank transactions.
All Bank
operating in the country have accounts with the Reserve Bank.
It acts as a
custodian and manages the Foreign Exchange Act, (FEMA) 1999.
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.
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

Market
Intermediaries Regulation and supervision Department ( MIRSD)
Market
Regulation Department
(MRD)
Derivatives
and New Product Department
(DNPD)
Corporation
Finance Department
(CFD)
Investment
Management Department
(IMD)
Integrated
Surveillance Department
(IVD)
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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