Consider the following statements ndash 1 The Reserve Bank of India RBI regulates com...........

Economic Affairs Types of Banks and Banking

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Consider the following statements –

1. The Reserve Bank of India (RBI) regulates commercial banks and partially cooperative banks.

2. National Housing Bank (NHB) regulates housing finance companies.

Which of the statement given above is / are correct?

1 only

2 only

Both 1 & 2

Neither 1 nor 2

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Explanation:

- Statement 1: The Reserve Bank of India (RBI) regulates commercial banks and also has regulatory powers over some functions of cooperative banks, but fully regulates only urban cooperative banks. Rural cooperative banks are regulated jointly by RBI and NABARD.

- Statement 2: National Housing Bank (NHB) used to regulate housing finance companies (HFCs), but since 2019, all regulatory powers over HFCs have been transferred from NHB to the RBI.

- So, currently, Statement 1 is partially true, but Statement 2 is not correct, since NHB does not regulate HFCs anymore.

- Correct answer:

Option:4, Neither 1 nor 2