Practicing Success
The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -₹1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, ₹25,000 on Nagarik Sahakari Bank Maryadit, and ₹1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi commercial bank an exposure norms and statutory and other restrictions & KYC. |
Which function of central Bank is referred to in the above paragraph? |
Financial Advisor Supervisor to Banks Banker's Bank Lender to last resort |
Supervisor to Banks |
The correct answer is Supervisor to Banks. The RBI's action of imposing monetary penalties on three banks for violating its regulations is a direct manifestation of its role as a supervisor to banks. As a supervisor, the RBI is responsible for ensuring that banks comply with all applicable laws and regulations. This includes maintaining adequate capital, managing risk effectively, and treating customers fairly. The RBI's supervisory powers are essential for maintaining a sound and stable banking system. By enforcing regulations and taking corrective action when necessary, the RBI helps to protect the interests of depositors and promote financial stability. The other options are not as relevant to the specific scenario described in the paragraph.
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