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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to the Indian Financial Markets

In India, which of the following is the regulator that frames the monetary policy and acts as the issuer of currency notes (other than one-rupee notes)?

The Reserve Bank of India is the correct answer because it is the central bank that frames monetary policy and issues currency notes. SEBI regulates securities markets, IRDAI regulates insurance and PFRDA regulates pensions, so none of those perform the central banking functions.

  1. ASecurities and Exchange Board of India
  2. BReserve Bank of IndiaCorrect
  3. CInsurance Regulatory and Development Authority of India
  4. DPension Fund Regulatory and Development Authority

Explanation

The Reserve Bank of India is the central bank. It formulates monetary policy and issues currency notes, while SEBI, IRDAI and PFRDA regulate securities, insurance and pensions respectively.

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