Business Regulators and Intermediaries — Flashcards

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Regulators are authorities constituted or appointed by the Government. They regulate the working of specified individuals and organisations. Their main purpose is to ensure ethical functioning and saf…

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Intermediaries are individuals and organisations who act as middlemen between two different groups of economy or society. In business, they connect corporate firms, investors, and consumers. Examples …

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Regulators are official agencies appointed by the Government to control and supervise others. Intermediaries are usually unofficial or private agencies that connect buyers and sellers or firms and inv…

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The Reserve Bank of India is the Central Bank of India. It regulates commercial banks, both Indian and foreign, and non-banking finance companies working in India. It was set up in 1935 under the Rese…

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As a banker's bank, RBI acts as a banker to commercial banks. It provides short-term loans and bill discounting facilities, advises banks on business matters, and requires commercial banks to keep a c…

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RBI is called the lender of the last resort because when a commercial bank cannot get funds from other banks, RBI provides financial help by granting loans or purchasing its securities.

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RBI provides clearing house facility to commercial banks and settles their claims through book entries. Daily balances between banks are adjusted through debit and credit entries in their accounts wit…

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RBI is the custodian of foreign exchange reserves and also helps maintain a stable exchange rate. It buys and sells foreign currencies to reduce wide fluctuations in exchange rates and supports the co…