Control over the Organisation of Banks in India: A Modern Regulatory Perspective
India’s banking system operates under one of the most robust regulatory frameworks in the world. The Reserve Bank of India (RBI), as the central authority, ensures that banks remain stable, transparent, and trustworthy, while key legislations—most notably the **Banking Regulation Act, 1949** and its **2025 amendments**—provide the legal foundation for governance. Legal Foundation and RBI’s…
Read article Who Regulates Banks and NBFCs in India? A Look Beyond RBI
When we think of regulation in India’s financial sector, the Reserve Bank of India (RBI) usually comes to mind first. And rightly so — RBI plays the central role in supervising both banks and Non-Banking Financial Companies (NBFCs). But the reality is more complex. Banks and NBFCs are also regulated by multiple other authorities, each…
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Dual Regulation of Co-operative Banks in India: RBI and Registrar of Co-operative Societies
Co-operative banks in India occupy a unique position in the financial system by catering to grassroots-level credit needs, especially in rural and semi-urban areas. However, unlike commercial banks, they function under a dual regulatory framework, which has often raised questions about governance and accountability. The Dual Control Framework The regulation of co-operative banks is shared…
Read article Government’s Regulatory Role in Banking
The government plays a crucial role as a regulator of banks primarily through the central bank and legislative framework. In India, for example, the Reserve Bank of India (RBI) acts as the central bank and chief regulator of the banking sector, empowered by statutory acts such as the Banking Regulation Act of 1949 and the…
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RBI as the Central Bank of India and Regulator of Banks and Non-Banking Financial Institutions (NBFCs)
The Reserve Bank of India (RBI) serves as India’s central bank, established on April 1, 1935, under the RBI Act of 1934, to manage the nation’s currency, credit, and financial system. As the apex institution, the RBI regulates the banking sector, issues currency, and implements monetary policy to ensure monetary stability and economic growth. It…
Reserve Bank of India Act, 1934
The Reserve Bank of India Act, 1934 is the foundational legislation that established the Reserve Bank of India (RBI) and continues to govern its structure, powers, and functions. It provides the legal backbone for India’s monetary policy, currency operations, and banking regulation, making it one of the most important financial laws in the country. Purpose…
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