some of them have gone to the courts, too (the            The FSLRC (Financial Sector Legislative
     judgement on the court cases to clarify the RBI      Reforms Commission), set up (headed by Justice
     vs. State Government issue are before the Supreme    B. N. Srikrishna) to examine the regulatory
     Court).                                              structure and the laws governing the financial
                                                          sector, submitted its report by early 2013. In a
     sPeciAl stAtutes for certAin finAnciAl               broad sense, the commission has recommended
     intermeDiAries                                       for changeover from an ‘area-based’ division
     Some key financial services intermediaries like SBI  of regulators to a ‘task-based’ division. Major
     (and its Associate Banks before their consolidation  highlights of the recommendations are as follows:
     with SBI in 2017-18), Public Sector Banks, LIC            (i) Developing a ‘horizontal structure’
     and GIC are governed by their own statutes. These             whereby, the basic regulatory/monitoring
     statutes give a special status to these institutions          functions to be done by a UIA (Unified
     vis-á-vis the other institutions performing the               Financial Agency)—in place of each
     same functions. Earlier, IFCI, UTI and IDBI also              agency (like SEBI, IRDA, etc.) looking
     operated under special statutes, but now there                after one financial type and area. It will
     special statutes have been repealed.                          eliminate regulatory overlap (due to which
                                                                   the ULIP controversy happened between
     estAblishment of fsDc                                         the SEBI and IRDA).
     Few years back, an important addition was made to        (ii) Setting up a FRA (Financial Redressal
     the regulatory architecture—the Financial Sector              Agency) to handle consumer complaints,
     Development Council (FSDC) was set up which                   regardless of area. It means, regulator not
     replaced the High Level Committee on Capital                  to oversee the consumer complaints.
     Markets. The council is convened by Ministry of
     Finance and does not have statutory authority—          (iii) FSAT (Financial Sector Appellate
     it is structured as a council of regulators—Finance           Tribunal) to be set up to hear the appeals
     Minister as chairman. It has a permanent                      of entire financial sector.
     secretariat.                                            (iv) Advice to set up three other agencies
           The council resolves inter-agency disputes;             which will oversee banking, besides the
     look after the regulation of financial conglomerates          RBI.
     that fall under various regulators’ purview; and          The advices of the commission are under
     performs wealth management functions dealing         government’s consideration with some of them in
     with multiple products.                              the process of getting adopted, too.