JAIIB · IEIFS

Indian Financial System

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.

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Q

What is the primary function of the Indian Financial System?

A

The Indian Financial System facilitates the mobilisation of savings and channelling them into productive investments, thereby promoting economic growth and development.

Q

What is the role of the Reserve Bank of India in the financial system?

A

RBI is India's central bank managing monetary policy and currency.

Q

Which apex body regulates the banking sector in India?

A

The Reserve Bank of India (RBI) is the apex regulatory body for the banking sector in India, established under the RBI Act, 1934.

Q

What are scheduled commercial banks in India?

A

Banks listed in the Second Schedule of the RBI Act, 1934.

Q

What does SEBI stand for and what is its role?

A

SEBI stands for Securities and Exchange Board of India; it regulates the securities market to protect investor interests and promote orderly development of the market.

Q

What is the difference between public sector and private sector banks in India?

A

Public sector banks are majority government-owned; private sector banks are not.

Q

What is the role of IRDAI in the Indian financial system?

A

IRDAI (Insurance Regulatory and Development Authority of India) regulates and develops the insurance sector in India, ensuring policyholder protection and orderly growth of the industry.

Q

What is the Call Money Market in India?

A

Overnight inter-bank borrowing and lending market for short-term liquidity.

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