1.Indian Financial System and RBI
Economic activities of any country encompass all business, trade, industry and commerce. This is further topped up by international transactions a country has to deal with. Normally it is advocated that free forces of market and economy should be left to play and determine the course and outcome of economic activities. However this approach is not warranted as the stakes are too high and irreversible damage can unleashed. This is because a country has varied social obligations. In India, the RBI is the central banking authority constituted under the Reserve Bank of India Act, 1934 ('RBI Act'), and its duties and responsibilities flow from that statute. With the passage of the statute, RBI came into existence and it commenced its operations as the central bank of the country on 1st April 1935 as a private shareholders' bank with a paid up capital of rupees fifty million. Regulatory structure in India The regulation and supervision of the financi...