Banking Regulation and Monetary Policy

WMA is a mechanism used by Reserve Bank of India.

The foreign exchange reserves of India include Foreign Exchange Assets of the Reserve Bank of India, Gold Stock of RBI, Special Drawing Rights (SDR) holding of the Government and Reserve Tranche Position (The difference between a member's quota and the IMF's holdings of its currency is a country's Reserve Tranche Position.) 

The Narasimham Committee (1991 and 1998) made comprehensive recommendations for banking sector reforms in India. These included reducing CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio), deregulating interest rates, and introducing prudential norms for asset classification and income recognition. All these reforms were aimed at modernizing Indian banking.

Correct option is (3).

Rotation scheme of auditors is applicable to private companies having paid up capital of Rs. 20 crore or more as per Section 139 of Companies Act, 2013.

The Reserve Bank of India (RBI) is India's central bank, responsible for regulating the monetary policy, issuing currency, and supervising the financial system. It was established in 1935 and nationalized in 1949. A central bank is not a commercial or private bank that deals with the general public - it primarily serves as the banker to the government and regulates other banks in the country.

Correct Answer: Sudarshan Sen

Yes, this is the correct choice. If any bank branch serves more than 10 lakhs of population, then it is called as metropolitan branch. 

Yes, this is the correct choice.   All the options are the measures taken by the RBI against the devaluation of rupee and for the inflow of foreign currency. 

To distribute by engaging Financial Service Executives (FSE) who are individuals licensed to market, distribute and service such other financial products namely:

a. mutual funds of mutual fund companies regulated by SEBI; b. pension products regulated by PFRDA; c. other financial products distributed by SEBI licensed Investment Advisors; d. banking/ financial products of banks/ NBFC regulated by RBI; e. non-insurance products offered by Department of Posts, Government of India; f. any other financial product or activity permitted by the Authority from time to time.

Correct answer is (5). 

Option (3) is correct.

The Gadgil Group (1969) recommended the Lead Bank Scheme to promote integrated area development and ensure banking services in underbanked regions. The scheme assigned each district a lead bank responsible for credit deployment and financial inclusion. The Kamraj Plan was about political leadership, Wanchoo Committee dealt with tax evasion, and Bank Committee is too vague.

NABARD (A), GIC (C), and UTI (D) operate as lenders in the call money market. RBI (B) is the regulator and supervisor of the money market, not a participant lender. Therefore, options A, C, and D together is the correct combination.

Variable Reserve Ratio (Cash Reserve Ratio) is aimed to control only the volume of credit (quantitative method), not the purpose of credit for which bank gives loans. Qualitative method and selective control method are used for these purposes.