Why this matters now
UPSC asks which regulator governs which segment, and their statutory basis — a clean match-the-following. The FSDC and regulatory architecture also feature in current affairs.
The four main regulators
| Regulator | Domain | Established |
|---|---|---|
| RBI | Banking & monetary policy; the central bank | 1935 (RBI Act 1934) |
| SEBI | Securities/capital market; investor protection | 1992 (statutory) |
| IRDAI | Insurance sector | 1999 |
| PFRDA | Pensions (NPS) | 2013 (statutory) |
RBI and SEBI
The Reserve Bank of India is the central bank — it conducts monetary policy, regulates banks and the payment system, manages the currency and forex reserves, and acts as banker to the government. SEBI regulates the securities market — registering intermediaries, curbing fraud and insider trading, and protecting investors.
IRDAI and PFRDA
IRDAI (Insurance Regulatory and Development Authority of India) regulates the insurance industry, protecting policyholders and promoting orderly growth. PFRDA (Pension Fund Regulatory and Development Authority) regulates the pension sector, chiefly the National Pension System (NPS).
Coordination — FSDC
To address overlaps and systemic risk, the Financial Stability and Development Council (FSDC) — chaired by the Union Finance Minister, with all regulators as members — coordinates regulation and monitors financial stability across the system.
UPSC angle
Match regulator → sector (RBI-banking, SEBI-securities, IRDAI-insurance, PFRDA-pensions) and note the FSDC as the apex coordination body chaired by the FM.
Frequently asked questions
Who regulates banks in India?
The Reserve Bank of India (RBI), the central bank.
What does SEBI regulate?
The securities/capital market — protecting investors and curbing malpractice like fraud and insider trading.
What do IRDAI and PFRDA regulate?
IRDAI regulates insurance; PFRDA regulates pensions, chiefly the National Pension System (NPS).
What is the FSDC?
The Financial Stability and Development Council — chaired by the Finance Minister — which coordinates financial regulation and monitors systemic stability.