Q: With reference to ‘Financial Stability and Development Council’, consider the following statements
a) It is an organ of NITI Aayog.
b) It is headed by the Union Finance Minister.
c) It monitors macro prudential supervision of the economy.
The correct answer is 2 and 3 only.
The Financial Stability and Development Council (FSDC)
- It was established by Executive Order in 2010 and serves as the Ministry of Finance’s non-statutory apex council. Hence, Statement 1 is not correct.
- Its members comprise the heads of all financial sector regulators (RBI, SEBI, PFRDA, and IRDA), the finance secretary, the secretaries of the departments of economic affairs (DEA), financial services (DFS), and chief economic adviser.
- It is presided over by the finance minister. Hence, Statement 2 is correct.
- The objective of FSDC is to Strengthening and institutionalising the system for preserving financial stability is FSDC’s primary goal. Hence, Statement 2 is correct.
- Improving inter-regulatory coordination and encouraging the growth of the financial sector.
- Keep an eye on the macroprudential control of the economy.
- It will evaluate how well the major financial corporations are operating.
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