Question

Explain in detail RBI's regulation of commercial banks with reference to Bank and Branch licensing.

Answer 1

Answer:One of the most important functions of RBI is to work as regulator and supervisor of financial system. The financial system in India includes Commerciial Banks, Regional Rural Banks, Local Area Banks, Cooperative Banks, Financial Institutions including Development Financial Institutions (DFIs) and Non-Banking Financial Companies. RBI derives its regulating powers for Indian Banking System from the provisions of the Banking Regulation Act 1949. Hope this helps!!