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Indian Economy

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high importance~2 Q in Tier 16 formulas⚡ 19 shortcuts8 subtopics

Regulators, exchanges and international organisations

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Domestic regulators & institutions

BodyYearHQHead (2026)
RBI1935 (nationalised 1949)MumbaiGovernor Sanjay Malhotra
SEBI1988 (statutory 1992)MumbaiTuhin Kanta Pandey (since Mar 2025)
IRDAI1999 (Act 2000)Hyderabad—
PFRDA2003 (Act 2013)New Delhi—
NABARD12 July 1982MumbaiRefinances agriculture/rural credit (Shivaraman Committee)
SIDBI1990LucknowRefinances MSME credit
BSE1875 — Asia's oldest exchangeMumbaiSENSEX 30 stocks
NSE1992 (trading 1994)MumbaiNIFTY 50 stocks

International organisations (economy-facing)

OrgYearHQChief (2026)
IMF1944 (Bretton Woods)Washington DCMD Kristalina Georgieva; SDR quota reforms; reports: World Economic Outlook, Global Financial Stability Report
World Bank1944 (IBRD 1945)Washington DCPresident Ajay Banga (since Jun 2023); World Development Report
WTO1995 (succeeded GATT 1947)GenevaDG Ngozi Okonjo-Iwealla; India a founding member
ADB1966ManilaPresident Masato Kanda (2025)
AIIB2016BeijingIndia a founding member (2nd largest shareholder)
NDB (BRICS)2015ShanghaiFirst president K.V. Kamath
OECD1961ParisIndia is not a member

Detailed notes

Regulators — who watches which market

  • SEBI — securities market regulator; set up 1988 (executive), statutory by the SEBI Act, 1992 (after the Harshad Mehta episode); HQ Mumbai.
  • IRDAI — insurance regulator under the IRDA Act, 1999; HQ Hyderabad.
  • PFRDA — pension regulator (interim 2003; statutory by the PFRDA Act, 2013); runs NPS and APY; HQ New Delhi.
  • RBI — banks, NBFCs, payment systems. Others worth a line: NABARD (rural credit apex), SIDBI (small-industry finance), real-estate RERA (2016).

Development finance institutions

  • NABARD — 12 July 1982, on the Shivaraman committee's advice, taking over RBI's agricultural-refinance functions; apex for rural credit, refinances RRBs and co-operative banks; HQ Mumbai; owned by the Government of India.
  • SIDBI — 1990, HQ Lucknow; refinance window for small industries and the fund manager for MUDRA.
  • EXIM Bank — 1982, trade finance; NHB — 1988, housing finance regulator-turned-developer of the housing market.

Markets and exchanges

The BSE (1875) — Asia's oldest exchange, began as the Native Share & Stock Brokers' Association — publishes the Sensex (30 stocks). The NSE (incorporated 1992, trading from 1994) brought screen-based trading and publishes the Nifty 50. NPCI (2008), the payments umbrella body, built UPI (2016), RuPay, IMPS, FASTag. Shares are held electronically with two depositories — NSDL and CDSL — while the FSDC (Financial Stability and Development Council, 2010) coordinates regulators at the apex level, chaired by the Union Finance Minister.

Multilateral institutions — HQs to memorise

InstitutionYearHQNote
IMF1944 (Bretton Woods)Washington DCquotas, SDRs, BoP support
World Bank1944Washington DCIBRD + IDA
WTO1995 (GATT 1947/48 before)Geneva164 members, trade rules
ADB1966Manilaregional development bank
AIIB2016BeijingIndia an early, large shareholder
New Development Bank2015ShanghaiBRICS bank; first president K.V. Kamath
FATF1989Parismoney-laundering watchdog (India member since 2010)

Quick revision

  • SEBI 1992 Act, Mumbai; IRDAI 1999, Hyderabad; PFRDA 2013 Act, New Delhi (NPS).
  • NABARD 12-7-1982 (Shivaraman; from RBI agri refinance); SIDBI 1990 Lucknow; EXIM 1982; NHB 1988.
  • BSE 1875 (Asia's oldest) → Sensex 30; NSE 1992/94 → Nifty 50; NPCI 2008 → UPI 2016.
  • IMF/WB 1944 Washington; WTO 1995 Geneva; ADB 1966 Manila; AIIB 2016 Beijing; NDB 2015 Shanghai (BRICS); FATF Paris.

Types of questions asked

Every way this subtopic shows up in exams — how to recognise it, the formula or logic to use, and a solved example.

Type 1: Regulator ↔ sector matchingvery common3 practice Q
How to spot it:

'SEBI regulates', 'the insurance regulator is', 'who runs the NPS', matching each regulator with its market.

  1. One line each: SEBI — securities; IRDAI — insurance; PFRDA — pensions (NPS/APY); RBI — banks, NBFCs, payments.
  2. Year hooks: SEBI statutory 1992; IRDAI 1999; PFRDA statutory 2013 (interim 2003).
  3. If the question names 'stock broker' or 'mutual fund', the answer is SEBI; 'policy-holder' points to IRDAI.

Example: The regulation of the securities market in India vests in —

SEBI, constituted in 1988 and made statutory by the SEBI Act, 1992; headquartered in Mumbai.

Type 2: Institution ↔ headquarterscommon3 practice Q
How to spot it:

'SIDBI is headquartered at', 'the IRDAI sits in', matching development banks and regulators with cities.

  1. Financial-sector HQs: SIDBI — Lucknow (the classic answer); IRDAI — Hyderabad; SEBI, NABARD, EXIM — Mumbai; NHB and PFRDA — New Delhi.
  2. Multilaterals: IMF/World Bank — Washington; ADB — Manila; AIIB — Beijing; NDB — Shanghai; WTO — Geneva; FATF — Paris.
  3. Lucknow and Hyderabad are the two 'surprise' HQs exams love.

Example: The Small Industries Development Bank of India (SIDBI) is headquartered in —

Lucknow — set up in 1990 as the apex refinancer for small industries (and MUDRA's fund manager).

Type 3: Year ↔ founding eventcommon2 practice Q
How to spot it:

'NABARD was established in', 'Asia's oldest stock exchange is', matching years with institutions.

  1. India: BSE 1875 (Asia's oldest); NSE 1992/1994; NPCI 2008; NABARD 1982; SIDBI 1990; EXIM 1982; NHB 1988.
  2. Multilaterals: IMF/WB 1944 (Bretton Woods); WTO 1995 (GATT 1947 before); ADB 1966; NDB 2015; AIIB 2016.
  3. 'Oldest exchange in Asia' = BSE, born as the Native Share & Stock Brokers' Association.

Example: Which is Asia's oldest stock exchange?

The BSE, Bombay (1875) — founded as the Native Share & Stock Brokers' Association; the NSE followed only in 1992.

Type 4: Multilateral banks and fundscommon2 practice Q
How to spot it:

'The New Development Bank is headquartered at', 'which bank do BRICS countries own', 'the ADB was set up in', matching multilaterals with HQ and membership.

  1. NDB (2015, Shanghai) = the BRICS bank; first president K.V. Kamath.
  2. AIIB (2016, Beijing) — India an early member and second-largest shareholder.
  3. IMF = balance-of-payments support, quotas and SDRs; World Bank = long-term development lending; both born at Bretton Woods, 1944.

Example: The New Development Bank, set up by BRICS nations in 2015, is headquartered in —

Shanghai — with K.V. Kamath as its first president; it funds infrastructure and sustainable development.

Type 5: Indices, exchanges and payment railscommon2 practice Q
How to spot it:

'The Sensex comprises', 'Nifty belongs to which exchange', 'UPI is operated by', matching index ↔ exchange and product ↔ operator.

  1. Sensex — 30 stocks, BSE; Nifty 50 — NSE; both free-float market-cap weighted.
  2. NPCI (2008) operates UPI, RuPay, IMPS, FASTag, NACH; UPI went live in 2016.
  3. Depositories: NSDL and CDSL hold shares electronically — a frequent fourth option in such questions.

Example: UPI is built and operated by —

NPCI (National Payments Corporation of India, est. 2008) — the umbrella body behind UPI (live 2016), RuPay, IMPS and FASTag.

Shortcut tricks

⚡ Regulator HQ pairs

RBI-SEBI-NABARD = Mumbai; IRDAI = Hyderabad; SIDBI = Lucknow; PFRDA = New Delhi.

Example: SIDBI headquarters?

Lucknow (set up 1990).

⚡ Bretton-Woods twins

IMF + World Bank both born at Bretton Woods (1944), both in Washington DC; WTO (1995, Geneva) replaced GATT (1947).

Example: Where is the WTO headquartered?

Geneva.

⚡ Asian banks map

ADB 1966 → Manila; AIIB 2016 → Beijing; NDB (BRICS) 2015 → Shanghai. India founding member in all three.

Example: NDB headquarters?

Shanghai.

Where students lose marks

  • Placing SEBI in New Delhi — it is Mumbai; PFRDA is the Delhi one.

  • Saying India is an OECD member — India is not (it engages as a Key Partner).

  • Assuming the IMF chief is always a European — tradition, not rule; Georgieva (Bulgarian) is the current MD.

Practice sets — 12 questions

Sets of 10, mixed across the question types above. Each answer comes with a step-by-step explanation.

Topic test · 12 questions

Suggested time 5 min · wrong answers go to your mistake notebook automatically.