ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Department of Non-Banking Supervision (DNBS) is entrusted with the responsibility of regulation and supervision of Non-Banking Financial Companies (NBFCs) under the regulatory-provisions contained under Chapter III B and C and Chapter V of the Reserve Bank of India Act, 1934.

Detailed explanation-2: -Central Bank: The central bank plays a vital role in the money market. It is the monetary authority and is regarded as an apex institution. No money market can exist without the central bank.

Detailed explanation-3: -NBFIs supplement banks in providing financial services to individuals and firms. They can provide competition for banks in the provision of these services. While banks may offer a set of financial services as a package deal, NBFIs unbundle these services, tailoring their services to particular groups.

Detailed explanation-4: -Commercial Banks. Commercial banks are generally stock corporations whose principal obligation is to make a profit for their shareholders. Savings and Loans/Savings Banks. Credit Unions.