Question

75. Consider the following statement with references to Financial Stability and Development Council
1. FSDC is regulator of regulators.
2. It addresses inter-regulatory coordination issues among financial sector regulatory authorities.
3. The Union Finance Minister is the ex-officio chairman of FSDC.
4. Financial literacy and financial inclusion are not the direct mandate of it.
Which of the above statement(s) is/are correct?

• A. Only 1, 2 and 3
• B. Only 2, 3 and 4
• C. Only 1, 2 and 4
• D. All of the above

Answer 1

The correct option is A Only 1, 2 and 3

FSDC is super regulatory body for regulating financial sector. Without prejudice to the autonomy of regulators, this Council would monitor macro prudential supervision of the economy, including the functioning of large financial conglomerates. In this way it is regulator of regulators. It will address inter-regulatory coordination issues and thus spur financial sector development. It will also focus on financial literacy and financial inclusion. What distinguishes FSDC from other such similarly situated organizations across the globe is the additional mandate given for development of financial sector. Chairman of the FSDC is the Finance Minister of India and its members include the heads of the financial sector regulatory authorities (i.e, SEBI, IRDA, RBI, PFRDA and FMC).