Correct Answer: Reserve Bank of India (RBI)

Solution : The correct answer is (a) Reserve Bank of India (RBI)

The correct institution responsible for regulating and supervising the functioning of universal banks in India is the Reserve Bank of India (RBI). Universal banks in India are commercial banks that offer a wide range of financial services, including accepting deposits, providing loans, offering investment services, and conducting other banking activities.

The RBI is the central banking institution in India and the primary regulatory authority for banks. It formulates and implements regulations and guidelines to ensure the stability, soundness, and efficient functioning of the banking system. The RBI issues licenses to banks, sets prudential norms, supervises their operations, and oversees aspects such as capital adequacy, liquidity management, risk management, governance, and compliance with regulatory requirements.