The financial authorities in India monitor the various financial aspects that are related to the Indian economy. The financial authorities in India also perform various duties for the well being of the Indian economy.
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The financial authorities in India delineate the laws that are related to the functioning of various components of the Indian economy, for example, the banks. Following are the chief financial authorities in India:
- Insurance Regulation and Development Authority (IRDA)
- Reserve Bank of India (RBI)
- Central Board of Direct Taxes (CBDT)
- Central Board of Excise and Customs (CBEC)
Reserve Bank of India
The Reserve Bank of India acts as the central banking authority of India. It was established on the 1st of April, 1935. It plays a variety of roles in the context of Indian economy and they are the following:
- Monetary Authority
- Issuer of Currency
- Regulator and Supervisor of the Financial System
- Developmental Role
- Manager of Exchange Control
As the monetary authority of India, Reserve Bank of India performs the following functions:
- Formulates the monetary policy
- Monitors the monetary policy
- Implements the monetary policy
Reserve Bank of India performs the following functions as the issuer of currency:
- Issues currency
- Destroys currency and coins that are not fit for circulation
- Exchanges currency
In the capacity of the regulator and supervisor of the financial system, Reserve Bank of India executes the following function:
Dictates the broad parameters of banking operations within which the banking and financial system of India works
Securities and Exchange Board of India
The Securities and Exchange Board of India was incorporated by the Government of India in the year 1992 by the introduction of the SEBI Act, 1992. It is an independent body and acts as the regulator of the stock and securities markets in India. Following are its principal functions:
- Drafts rules in a legislative capacity
- Passes rules and orders in a judicial capacity
- Makes enquiries and enforcement action in an executive function
Insurance Regulation and Development Authority
The Insurance Regulation and Development Authority looks after the insurance and re-insurance businesses in India. They are supposed to perform the following duties:
- Govern the growth of insurance and re-insurance business in India
- Guarantee the growth of insurance and re-insurance business in India
- Boost the growth of insurance and re-insurance business in India
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