Indian Financial System - Regulators & their roles | Reforms & Developments in the Banking sector | MODULE C: INDIAN FINANCIAL ARCHITECTURE
Indian Financial System - Regulators & Their Roles The Indian Financial System comprises institutions, markets, instruments, and services that facilitate the flow of funds in the economy. Financial sector regulators ensure transparency, trust, and efficiency in the system. Role of Financial Sector Regulators in an Economy Financial regulators maintain the integrity of the financial system by setting rules, monitoring compliance, and intervening when necessary to maintain market stability and protect consumers. 1. Reserve Bank of India (RBI) Acts as the central bank and regulator of monetary policy. Issues currency and manages foreign exchange reserves. Regulates and supervises commercial banks, NBFCs, and cooperative banks. Maintains financial stability through liquidity management and inflation targeting. 2. Securities and Exchange Board of India (SEBI) Regulates the securities market (stocks, bonds, mu...