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Question : Which of the following institutions is responsible for regulating and supervising the functioning of small finance banks in India?

 

Option 1: Reserve Bank of India (RBI)

Option 2: Securities and Exchange Board of India (SEBI)

Option 3: National Stock Exchange of India (NSE)

Option 4: None of the above


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Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

Correct Answer: Reserve Bank of India (RBI)


Solution : The correct answer is (a). Reserve Bank of India (RBI)

Small Finance Banks are a type of banking institution that primarily serves the unserved and underserved sections of the population, including small businesses, low-income households, and rural areas. These banks are licensed under the Banking Regulation Act, 1949, and are regulated by the Reserve Bank of India.

The Reserve Bank of India (RBI) is the central banking institution in India and has the authority to regulate and supervise banks and financial institutions operating in the country. It formulates policies, issues guidelines, and ensures compliance with regulatory requirements to maintain the stability and soundness of the banking system.

 

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