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TOPIC-INDIA

SPECIFIC ISSUE
INTRODUCTION
Reserve Bank Of India draws its powers to
effectively discharge its regulatory and
supervisory functions.
There are various institutions which has
been formed for the welfare of the public.
Some of its are Banking Regulation Act,
Foreign Exchange Management Act,
Banking Ombudsman scheme, Financial
Sector Reforms and other institutions like
NABARD,IDBI,DFHI,IRBI and UTI.
Banking Regulation Act
Need for comprehensive banking
legislation.
Motive for the Banking Regulation Act
Broad coverage of Banking Regulation Act
(a)Part I deals with short titled, extend and
commencement
(b)Part II deals with the constitution and
governance aspects
(c)Part III deals with suspension of business
and winding of banking companies
(c)Part III deals with
suspension of business and
winding of banking companies
(d)Part IV deals with
miscellaneous aspects
(e)Part v deals with application
of the Act
PRINCIPLES OF BANKING REGULATION ACT

Application of the Act to all banking


companies.
Prohibition of bank from engaging in
other business.
Provision as to final accounts.
Licensing procedure
Provision for reserve fund
Restriction on formation of Subsidiary
Company
Requirement of paidup capital
Institution Setup By RBI
(a)NABARD
Formation
Initial Capital
Function of NABARD
Refinancing
Takeovers
(b) IDBI
Formation
Finance Institutions
Capital
Market Share
Functions
(c)DFHI
Establishment
Authorized Capital
Objective
Dealings
Participation
(d)UTI
Need
Establishment
Objectives
Capital Contributed
Authorities
Financial Sector Reforms
Highly segmented
Macro economic crisis
GOI launched several stabilization and
structural measures
Major components of reforms
(a)Stabilization of economy
(b)Deregulation of real and financial sector
(c) Liberalization of international trade
(d)Globalization
Challenge of Indian Economy
First phase reform
Second phase reform
Foreign Exchange Mgmt. Act
Formation
Replacement
Powers
Allowing of foreign markets
Regulations & mgt of foreign
exchange
OBJECTIVES
Facilitating external trade.
For promoting the orderly development
& maintenance of foreign exchange
management in India.
Regulation of foreign capital in India.
To remove imbalance of payment
To make strong and developed foreign
exchange market.
Banking Ombudsman
Scheme
Introduced in 2006
Appointment
Powers and jurisdiction
Settlement of claim by agreement
Award by Banking Ombudsman
Procedure for complaints
Grounds for complaints
Any person may file a complaint with the
Banking Ombudsman having jurisdiction
on any one of the following grounds:
(a)Non payment or inordinate delay in the
payment or collection of Cheques, drafts,
bills, etc.
(b)Non payment or delay in payment of
inward remittances.
(c)Failure to issue or delay in issue of
drafts, pay-orders or bankers Cheques.
(d)Non adherence to prescribed working
hours
(e)Failure to provide a delay in providing
banking facilities
(f)Refusal to open deposit accounts without
any valid reason
(g)Levying of charges without adequate prior
notice to customers
(h)Refusal to close or delay in closing the
accounts
(i)Non adherence to fair practices code as
adopted by the bank
Other Financial Regulators
and division of function
Specializes in different areas
RBI act as Supervisory body
SEBI Regulation
Insurance Regulatory
Need to establish super regulator
Need to identify existing regulatory
Supervision
Progressive evaluation

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