Banking Regulation and Monetary Policy

Deepak Mohanty committee is assigned with data and information management in RBI and not in permitting N.B.F.C. to work as business correspondents that work is assigned to Nachiket More committee.

As on September 30, 2009, the government holds 59.4 per cent stake in SBI, the country's largest bank. The stake sale would bring government holding in SBI at par with other nationalised banks.

The committee on financial inclusion (led by Dr. Raghuram Rajan) recommended that each commercial bank should open 250 branches in unbanked areas to provide banking access to the estimated 5.5 crore poor households. This was part of the broader financial inclusion initiative to bring underserved populations into the banking system.

All three phenomena have significantly impacted Indian banking. Financial Sector Reforms introduced liberalization and modernization, Globalization brought international competition and practices, and the government's push for financial inclusion expanded banking access to underserved populations. These forces together transformed the Indian banking landscape, making option D (All 1, 2 and 3) the correct choice.

IMF stands for International Monetary Fund, a global financial institution established in 1944 to promote international monetary cooperation and provide loans to countries. It is not Indian-specific - it's an international organization of 190 member countries headquartered in Washington D.C.

LAF stands for Liquidity Adjustment Facility, which the Reserve Bank of India uses to manage liquidity in the banking system by injecting or absorbing funds through repo and reverse repo operations. The question contains typos ('Reserve Rank' should be 'Reserve Bank', 'IAF' should be 'LAF'). Other options are incorrect or made-up.

Currency futures trading in India requires approval from multiple regulators. The Reserve Bank of India (RBI) regulates foreign exchange markets and forex derivatives, while the Securities and Exchange Board of India (SEBI) oversees securities exchanges and trading platforms. The International Monetary Fund (IMF) does not have direct approval authority over domestic financial market operations, as it is an international organization rather than a national regulator.

The Commission for Agricultural Costs and Prices (CACP) recommends MSP for crops to the Government of India. CACP is an attached office of the Ministry of Agriculture and Farmers' Welfare. FCI procures crops at MSP, RBI regulates monetary policy, and the Ministry implements policies but doesn't set prices.

The Sarkaria Commission (1983-1988) was constituted to review the balance of power between the Union and State governments in India. Its recommendations covered center-state relations, including discretionary powers of governors, deployment of Central forces, and deployment of All-India Services. The question contains a spelling error in 'Recommendations'.

Commission for Agricultural Costs and Prices recommends minimum support price for the crops in India.

The Reserve Bank of India (RBI) is India's central bank and is responsible for managing the country's foreign exchange reserves. These reserves include foreign currency assets, gold, and Special Drawing Rights (SDR) maintained to ensure stability in international payments and monetary policy. Stock exchanges (BSE, NSE) are trading platforms, while the Foreign Ministry handles diplomatic relations.

SEBI (Securities and Exchange Board of India) announced the removal of restrictions on foreign funds, including removing the 40% cap on Participatory Notes and Overseas Derivative Instruments. This was a significant liberalization move aimed at attracting more foreign investment. The relaxation of these curbs was part of broader financial sector reforms. The other options (BSE, NSE, RBI) are financial institutions but SEBI was the regulator that made this specific announcement.

The Department of Financial Services (under Ministry of Finance) and NABARD (National Bank for Agriculture and Rural Development) are the key government institutions that facilitate rural credit disbursement by banks. None of the listed departments (Railways, State Road Transports, Post and Telegraph, Ministry of Health) are directly involved in this function.

Statutory Reserves Requirements include Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). First statement is correct. Second statement is incorrect because of the term liquid in that. Third statement is obviously incorrect. Fourth statement is partially correct for SLR but does not stand correct for CRR so it is incorrect.