Banking financial institutions regulatory framework from "summary" of Indian Economy: Performance and Policies by Uma Kapila
The regulatory framework for banking financial institutions in India is vital for maintaining stability in the financial system. The framework consists of various rules, regulations, and guidelines that govern the functioning of banks and other financial institutions. It aims to ensure the proper functioning of these institutions and protect the interests of depositors and other stakeholders. The Reserve Bank of India (RBI) plays a central role in formulating and implementing the regulatory framework for banking financial institutions. It is the primary regulator of banks in India and is responsible for overseeing their operations and ensuring compliance with regulatory requirements. The RBI issues guidelines on various aspects of banking operations, such as capital adequacy, risk management, and corporate governance. Apart from the RBI, other regulatory bodies, such as the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority of India (IRDAI), also play a role in regulating financial institutions in their respective sectors. These bodies have specific mandates related to securities markets and insurance companies, respectively. The regulatory framework for banking financial institutions in India is constantly evolving to keep pace with changes in the financial system and global best practices. The framework is designed to promote financial stability, protect the interests of depositors, and ensure the soundness of the banking system. It also aims to prevent financial crises and mitigate systemic risks. The regulatory framework for banking financial institutions in India is comprehensive and covers various aspects of banking operations. It includes regulations related to capital adequacy, liquidity management, asset quality, and risk management. The framework also addresses issues such as corporate governance, customer protection, and financial inclusion.- The regulatory framework for banking financial institutions in India is essential for maintaining the stability and integrity of the financial system. It provides a set of rules and guidelines that govern the operations of banks and other financial institutions, ensuring that they operate in a safe and sound manner. By promoting transparency, accountability, and good governance, the regulatory framework helps build trust in the financial system and foster confidence among depositors and investors.
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