Which of the following regulatory bodies in India is responsible for regulating and licensing Regional Rural Banks (RRBs) alongside the Reserve Bank of India?

💡 Solution & Explanation

NABARD exercises regulatory supervision over Regional Rural Banks under the National Bank for Agriculture and Rural Development Act of 1981, cooperating closely with the Reserve Bank of India to ensure rural financial stability. Alternative institutions like the Securities and Exchange Board of India oversee capital markets, whereas the Insurance Regulatory and Development Authority of India manages the insurance sector. NABARD was established upon the recommendation of the B. Sivaramaman Committee.