Financial Regulators in India...

Reserve Bank of India(RBI)

Reserve Bank of India started its functioning from 1st April, 1935 and in the year 1949 it was nationalized. RBI's main function is to control the monetary policy of Indian currency. The main functions of RBI are as follows:

1. Regulator and Supervisor of the financial system- RBI is involved in the regulatory and supervisory role of the Indian banking system and to do so it frames broad range of parameters. This helps to get the confidence of the general public into the banking system. It keeps a check to see that there is no kind of fraud happening or supposed to happen in banking institutions.
2. Banker's Bank- For all the commercial bank that are performing action in India can open their account with RBI which acts as a central bank for them.RBI control the credit system of commercial banks through various rate/ratios. Being a central bank RBI also facilitate the banks in clearing the inter bank transaction though check clearance system or NEFT of RTGS.
3. Issuer of Currency- Only RBI holds the right to print/generate Indian currency, it has also the rights to destroy the currency which are not fit for circulation anymore. Currency is printed in Nashik district of Maharashtra.
4. Managerial of Exchange Control- RBI facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. For keeping this check RBI uses Foreign Exchange Management Act (FEMA), 1999.
5. Detection of Fake Currency- RBI plays a very important role in detecting the fake currencies in the Indian market. For this RBI keeps on starting several awareness programs. 
6. RBI also plays a very important role in curbing inflation and also motivate the developmental programs that are running in India.

Policy Rates and Reserve Ratios

Repo Rate - This is the rate at which Central bank or RBI lends the money to commercial banks. As in when commercial banks fall in shortage of money in meeting the customers demand than in that case they need to borrow the money from RBI. When RBI don't want the money/cash to be surplus in market then it increases the rate of interest or else it decrease by some base points. Current Repo rate is 7.5%.

Cash Reserve Ratio (CRR) - CRR is nothing but the given percentage of total amount of that are deposited with bank needs to reserved/kept with RBI. Generally this may vary from 4-15%  of total of their demand and time liabilities. This is used to reduce the lending capacity of commercial banks. Current CRR rate is 4%.

Statutory Liquid Ratio (SLR) - SLR is the ratio which in forces the commercial banks to invest money to maintain liquid assets. SLR needs to maintained apart from CRR. For SLR money can be invested in gold or government bonds and securities. Current SLR rate is 21.5%.

Apart from these three rates and ratios there was another rate i.e. Reverse Repo rate and as per latest monetary policy Reverse Report will not be announce separately and that will be along with Repo rate.