The Banking Regulation (Amendment) Bill, 2020 was passed to provide re

The Banking Regulation (Amendment) Bill, 2020 was passed to provide regulatory powers to the Reserve Bank of India for overseeing the functioning of which financial institution?

1. Mutual funds
2. Insurance companies

Select the correct answer using the code given below.

Both 1 and 2

1 only

2 only

Neither 1 nor 2

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC Combined Section Officer – 2019-20

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Neither mutual funds nor insurance companies were brought under the purview of the Reserve Bank of India’s regulatory powers by the Banking Regulation (Amendment) Bill, 2020.

The Banking Regulation (Amendment) Bill, 2020, aimed to bring cooperative banks under the direct supervision of the Reserve Bank of India. This was done to strengthen their governance, improve financial stability, and protect depositors’ interests.

Mutual funds are regulated by the Securities and Exchange Board of India (SEBI). Insurance companies are regulated by the Insurance Regulatory and Development Authority of India (IRDAI). The 2020 amendment specifically targeted cooperative banks and did not extend RBI’s regulatory ambit to mutual funds or insurance companies.

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