Question

What are the main monetary institutions of India?

Answer 1

According to Economic Survey 2012-13, at the end of March 2012, there were four institutions regulated by Reserve Bank of India as all-India Financial Institutions: Export - Import Bank of India (Exim Bank) National Bank for Agriculture and Rural Development (NABARD) Small Industries Development Bank of India(SIDBI)

Answer 2

The main monetary institutions of India include Reserve Bank of India, other commercial banks of India like the State Bank of India, etc. , Securities and Exchange Board of India, Several insurance companies of India, etc.

EXPLANATION:

• The monetary institutions are institutions that provide financial and monetary funds to consumers and in turn, regulates the market which ultimately dictates the economy of country.
• The first monetary institution is Reserve Bank of India which provides loans and funds to other commercial banks of India.
• These commercial banks are places where a regular consumer can take loans to carry out various activities.
• The functioning of commercial banks is regulated by RBI of India which fixes the rate of interest for these banks.
• The examples of commercial banks are State Bank of India, Punjab National Bank, etc.
• SEBI is also a monetary institution that regulates funds in markets.
• Money is also provided to consumers by several insurance companies like LIC of India.