JAIIB · Indian Economy & Indian Financial System · Module C — Indian Financial Architecture
JAIIB IE&IFS Unit 27 — Indian Financial System — Regulators and Their Roles: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 2 November 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
Four regulators: RBI (banking), SEBI (markets), IRDAI (insurance), PFRDA (pension); rationale = public confidence; FSDC (Budget 2010-11, FM-chaired; sub-committee Governor-chaired).
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.
Law update, November 2026. Since 2023-24 eligibility rests on Tier 3/4 status and the 'financially sound and well managed' test, now in the RBI's UCB licensing and scheduling guidelines of 4 December 2025.
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
Before the SEBI Act, SEBI was first set up in April 1988 as a:
Why (a): SEBI was set up in April 1988 as a non-statutory body by a government resolution and became a statutory regulator under the SEBI Act, 1992.
Question 5 of 5
The RBI's power to give emergency loans on a 'special occasion', beyond its normal business, comes from Section:
Why (b): Section 18 of the RBI Act lets the RBI make loans and advances, and buy or rediscount bills, on a special occasion when it judges this necessary to regulate credit — the legal basis of its lender-of-last-resort role.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
1934 (Act)
1935 (established)
RBI's statute vs start
1935
1949
Establishment 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 3,000+ IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for 18 months (₹1,299). Not sure where you stand? Sit the free 120-question mock first (all four papers, questions drawn from pages like this one, real exam screen).
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 November 2026; verify from official sources before relying on them in practice.
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