Question

Q. Which of the following reforms were recommended by the Financial Sector Legislative Reforms Commission (FSLRC)?

Select the correct answer using the codes given below:

• A.
  1 and 2 only
• B.
  1, 2 and 3 only
• C.
  3 and 4 only
• D.
  1, 2, 3 and 4

Answer 1

The correct option is D

1, 2, 3 and 4
Explanation:

Financial Sector Legislative Reforms Commission (FSLRC) was set up by the Indian Government in pursuance of the announcement made in Union Budget 2010-11 to help rewriting and harmonizing the financial sector legislation, rules and regulations. It recommended the following:

Statement 1 is correct: It proposed a Unified Financial Agency for regulation and supervision of all non-bank and payments related markets by merging SEBI, FMC, IRDA and PFRDA.

Statements 2 and 3 are correct: It proposed two new entities:

• Debt Management Agency, as an Independent debt management agency.
• Financial Redressal Agency for redressing consumer complaints.

Statement 4 is correct: It proposed a Resolution Corporation for resolving works across the entire financial system.