Explanation:

- Option 1: RBI (Reserve Bank of India)

The RBI is the central bank of India. It formulates rules and regulations for scheduled commercial banks. This includes setting monetary policy, ensuring financial stability, issuing currency, and managing foreign exchange.

- Option 2: SBI (State Bank of India)

SBI is a public sector bank and does not set rules for other banks. It operates under the regulations set by the RBI.

- Option 3: SEBI (Securities and Exchange Board of India)

SEBI regulates the securities market. It does not govern banking regulations.

- Option 4: NABARD (National Bank for Agriculture and Rural Development)

NABARD focuses on rural and agricultural financing, not on setting banking regulations.

- Option 5: Finance Ministry

The Finance Ministry oversees economic policies but does not directly set banking rules like the RBI.

Correct Answer: Option 1: RBI