What significant Institutional development emerged from banking reforms after 1991 to regulate financial stability?
Show answer & explanation
Correct answer: A
Explanation
Correct Answer:
Board for Financial Supervision (BFS)
Explanation:
After the 1991 economic reforms in India, banking and financial sector regulation was strengthened to ensure financial stability and supervision of banks.
A key institutional development was the creation of the Board for Financial Supervision (BFS) under the Reserve Bank of India
It was set up in 1994
Its main role is to:
It works as a committee of the RBI Board
Other options
NABARD → Rural credit institution
Securities Appellate Tribunal (SAT) → Handles securities market disputes
MSME Credit Bureau → credit information system (not a regulatory body)
Related Competitive Exam Questions:
Q1. The Board for Financial Supervision (BFS) functions under:
Answer: Reserve Bank of India
Q2. NABARD mainly deals with:
Answer: Agricultural and rural credit