Financial Institutions and Financial Regulators in India: Banking Awareness Special Series

Team Adda247 and Bankers Adda have introduced a Special Banking Awareness series for SBI and IBPS Interviews 2021. In this series, we will be introducing the candidates with some banking awareness topics Daily that will improve their general awareness and will also ensure that the candidates do not lack in any banking term when it comes to the interview round. Today the topic of our Banking Awareness Series is Financial Institutions and Financial Regulators in India.

Financial Institutions and Financial Regulators in India

(A) Financial Institutions: They support the proper financial allocation of resources and sourcing from businesses that have a surplus amount and distributing to others who have deficits of it.

Here are the financial institutions:

• NABARD: National Bank for Agriculture and Rural Development is an apex regulatory body for the regulation and licensing process of regional rural banks (RRBs) and Co-operative banks in India. It is the key institution in the country to look after the development of small industry and village industry or even any other rural industry.

 Founded: 12, July 1982

HQ: Mumbai, Maharashtra 

Chairman: Govinda Rajulu Chintala

• SIDBI: Small Industries Development Bank of India is an apex regulatory body for the regulation and licensing process of microfinance institutions in India. It works as the principal agency for refinancing the Micro, Small, and Medium Enterprises (MSMEs).

Established: 2 April 1990

HQ: Lucknow, Uttarpradesh

Executive: Siva S. Ramana

• EXIM Bank: The Export and Import Bank of India has set up to provide financial assistance to exporters and importers. It functions as the principal financial institution for coordinating with each other.

Established: 1982 

HQ: Mumbai, Maharashtra

CEO: David Rasquinha

• NHB: National Housing Bank is an apex regulatory body for the regulation and licensing process of housing finance companies in India. It is the principal agency for promoting housing finance institutions at the local and regional levels and providing them financial support.

Established: 9 July 1988

HQ: New Delhi 

MD: Sarada Kumar Hota 

(B) Financial Regulators: Financial regulators control and manage the financial market, economy, and financial institutions for sustainable and equitable growth of the country. 

Here are financial regulators and some basic information about it as follows:

• RBI: Reserve Bank of India is the regulator of the banking and financial system of India. RBI issues guidelines and instructions for the Indian banking system as well as the financial system from time to time. It also maintains the confidence of people in the banking and financial system of the country.

Established: 1 April 1935

HQ: Calcutta (1935-36), Mumbai (after 1936)

• SEBI: Securities Exchange Board of India is the regulator of the securities market in India. It regulates and controls the business on stock exchanges and on other securities markets. It also protects the interest of investors through conducting proper guidance, educational programs, campaigns, and investor awareness programs. 

Established: 12 April 1988 

HQ: Mumbai, Maharashtra

Chairman: Ajay Tyagi

• IRDAI: The insurance regulatory and development authority of India is the regulating and developing statutory body of India. It regulates and promotes insurance business in India and it also protects the interest and confidence of clients against insurance companies. 

Established: 1999

HQ: Hyderabad

Chairperson: Subhash Chandra Khuntia 

• PFRDA: Pension Fund Regulatory Development Authority is the regulatory and developing agency for the pension sector of India. The national pension system which was launched by the Government of India in 2004 had the objective of setting up pension reforms and induces the habit of savings for retirement life amongst the citizens. 

Founded: 23 August 2003

HQ: New Delhi

Chairperson: Supratim Bandyopadhyaya