22. Consider the following statements related to Financial Stability and Development Council
i. Financial Stability and Development Council is an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
ii. It is headed by The Union Finance Minister of India
Which of the above statements is/are correct?
22. Consider the following statements related to Financial Stability and Development Council
i. Financial Stability and Development Council is an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
ii. It is headed by The Union Finance Minister of India
Which of the above statements is/are correct?
The correct option is C c) Both
Ans 22 C
Explanation: Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the RaghuramRajan Committee in 2008. Finally in 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India. An apex-level FSDC is not a statutory body. The recent global economic meltdown has put pressure on governments and institutions across the globe to regulate their economic assets. This council is seen as India's initiative to be better conditioned to prevent such incidents in future. The new body envisages to strengthen and institutionalise the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of economy.
Composition of Council:
• Chairperson: The Union Finance Minister of India
•Members:
• Governor Reserve Bank of India (RBl),
• Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA),
• Secretary, Department of Financial Services (DFS),
• Chief Economic Advisor, Ministry of Finance,
• Chairman, Securities and Exchange Board of India (SEBI),
• Chairman, Insurance Regulatory and Development Authorit (IRDA),
• Chairman, Pension Fund Regulatory and Development Authority (PFRDA),
• Chairman, Forward Markets Commission (FMC)
c) Both
Ans 22 C
Explanation: Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the RaghuramRajan Committee in 2008. Finally in 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India. An apex-level FSDC is not a statutory body. The recent global economic meltdown has put pressure on governments and institutions across the globe to regulate their economic assets. This council is seen as India's initiative to be better conditioned to prevent such incidents in future. The new body envisages to strengthen and institutionalise the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of economy.
Composition of Council:
• Chairperson: The Union Finance Minister of India
•Members:
• Governor Reserve Bank of India (RBl),
• Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA),
• Secretary, Department of Financial Services (DFS),
• Chief Economic Advisor, Ministry of Finance,
• Chairman, Securities and Exchange Board of India (SEBI),
• Chairman, Insurance Regulatory and Development Authorit (IRDA),
• Chairman, Pension Fund Regulatory and Development Authority (PFRDA),
• Chairman, Forward Markets Commission (FMC)
