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JAIIB IE&IFS Unit 27 — Indian Financial System — Regulators and Their Roles: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 27 — Indian Financial System — Regulators and Their Roles (Module C — Indian Financial Architecture). The Mock Centre holds 92 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module C92 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Four regulators: RBI (banking), SEBI (markets), IRDAI (insurance), PFRDA (pension); rationale = public confidence; FSDC (Budget 2010-11, FM-chaired; sub-committee Governor-chaired).
  2. RBI: Hilton-Young 1926 (Ambedkar's guidance), est. 1-4-1935 (RBI Act 1934), Kolkata→Mumbai 1937, nationalised 1949; ≤4 DGs; nine roles; HQ Mumbai; BFS oversees supervision; SSM inspects.
  3. MPC: 2016, Sec 45ZB, 6 members, ≥6 meetings (book); CRR Sec 42(1) — no interest; SLR: cash/ gold/G-secs (no equities); MSF (book: +100 bps); SDF replaced reverse-repo floor Apr 2022; MSS 2004; LTRO 2020; state OD 14 consecutive days.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
The financial system's four main regulators:
Why (b): The financial system's four main regulators: RBI (banking), SEBI (markets), IRDAI (insurance) AND PFRDA (pensions).
Question 2 of 5
The pension regulator:
Why (d): The pension regulator is PFRDA — the Pension Fund Regulatory and Development Authority.
Question 3 of 5
The correct regulator match:
Why (b): The correct regulator match: IRDAI — INSURANCE, with PFRDA taking pensions; the names spell it out.
Question 4 of 5
SEBI became a STATUTORY regulator through:
Why (a): The 1992 Act armed SEBI with quasi-legislative, executive and judicial powers over issuers, intermediaries and investors.
Question 5 of 5
'Lender of Last Resort' describes RBI's role of:
Why (b): The classic central-banking backstop: liquidity against collateral in extremis, preventing panic from toppling solvent institutions.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
1934 (Act)1935 (established)RBI's statute vs start
19351949Establishment vs nationalisation
Practise all 92 questions on Unit 27. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 26: Insurance Companies · Unit 28: Reforms and Developments in the Banking Sector → · All IE&IFS units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.