Every country has its own financial system and every country’s financial system is different from the others. Some are stock market dominated and others are banking industry dominated. India is dominated mainly by banking system with lot of people depositing their money into the banks rather than investing it in the stock markets. Most popular instruments with Indian population, primarily with parents, is FD i.e. Fixed Deposits. The reason behind preference for banks can be risk aversion, with banks being considered safer than stock markets. We should remember that banks also can fail, giving depositors a run for their money. That is why people consider depositing their money with trustworthy banks. Trustworthy are those which have been in the market since a long time and have established a reputation. One of them is State Bank of India. It is the largest public sector lender bank in the country. The largest private sector bank, as of April 2022, was HDFC. Apart from depositing, borrowing money from banks is also very prevalent. So, major financial needs of Indian diaspora are being fulfilled by banks.

Which of the following is NOT a financial sector regulator in India?

TRAI

The correct answer is Option 4: TRAI

Banking, insurance, and securities market come under the financial sector.

TRAI stands for Telecom Regulatory Authority of India. Its main purpose is to regulate telecommunication services, adjudicate disputes, dispose appeals and protect the interest of the service providers as well as consumers.

SEBI stands for Securities and Exchange Board of India. It is a regulator of the securities market.

RBI stands for Reserve Bank of India. It is a regulator of the banking sector.

IRDAI stands for Insurance Regulatory and Development Authority of India. IRDAI is the apex body that supervises and regulates the insurance industry in India.