Banking Regulation and Monetary Policy

Central Land Development Banks operate at the state level.Land Development Banks (LDBs) are also called as Land Mortgage Banks and Agricultural and Rural Development Banks in some states.Land Development Banks- co-operative credit institution provides long-term loans. It provide loans generally more than one year. It provides institutional credit which assist in agricultural developmental activities.

The financial system in India is typically categorized into financial institutions, financial markets, and financial instruments. Personal finance refers to individual money management and is not a structural component of the national financial system.

To ease the credit availability requirements of start-ups the government and announced the MUDRA Scheme. MUDRA Scheme helps to finance micro business enterprises of India. This scheme is known as Pradha Mantri Mudra Yojana.

SEBI (Securities and Exchange Board of India) is the regulatory body for the securities market in India, established to protect investors and promote the development of the market.

Both the statement are incorrect. If DFHI is not in the list, Statement 1 will become correct and similarly, money market of India makes maximum number of its instruments available to the banks (they are Call Money, Certificate of Deposit and Commercial Paper and the Repo).

The Fiscal Responsibility and Budget Management Act, 2003 (FRBMA) is an Act of the Parliament of India to institutionalize financial discipline, reduce India's fiscal deficit, improve macroeconomic management and the overall management of the public funds by moving towards a balanced budget.

Deficit financing can be achieved through various means, including borrowing from the central bank (RBI), borrowing from commercial banks, or issuing new currency.

Money supply increases when the RBI prints more money, banks expand credit, or the government spends more (often financed by borrowing). The fourth point is incomplete in the prompt, but based on standard economic theory, 1, 2, and 4 are the primary drivers of money supply expansion.

Reserve bank of India has the sole right to issue currency notes of various denominations except one rupee notes under Section 22 of Reserve bank of India Act. The one rupee note and coins are issued by ministry of finance and it bears the signature of Finance Secretary.

Under the RBI classification, M3 is defined as Broad Money, which includes currency, demand deposits, and time deposits.

M3 is defined as M1 plus time deposits. M2 is defined as M1 plus savings deposits with post office savings banks. Since the question asks for measures including time deposits, both M2 and M3 are often associated with broader definitions, though M3 is the primary one.

Prior to 1991, credit purchases was not allowed in the consumer market but after the coming of new economic policies credit purchase on consumer durables were allowed as there was high competition in the market after the coming of foreign merchandise.  

Financial sector reforms relates to reforms in all such sectors where finance was a major and prominent factor which included all the three sector i.e. banking, capital market, and insurance. 

The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. It focussed on issues like size of banks and capital adequacy ratio among other things.

The Reserve Bank of India was established on 1st Apr,1935 Kolkata.