Question

With reference to ‘Financial Stability and Development Council’, consider the following statements :

1. It is an organ of NITI Aayog.
2. It is headed by the Union Finance Minister.
3. It monitors macroprudential supervision of the economy.

Which of the statements given above is/are correct?

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

Answer 1

The correct option is C

2 and 3 only
The Financial Stability and Development Council (FSDC) is a non-statutory apex council under the Ministry of Finance constituted by the Executive Order in 2010.

It is chaired by the Finance Minister and its members include the heads of all Financial Sector Regulators (RBI, SEBI, PFRDA & IRDA), Finance Secretary, Secretary of Department of Economic Affairs (DEA), Secretary of Department of Financial Services (DFS), and Chief Economic Adviser.

The objective of FSDC is to
1 Strengthen and institutionalize the mechanism for maintaining financial stability
2 Enhancing inter-regulatory coordination and promoting financial sector development.
3 Monitor macro-prudential supervision of the economy.
4 It will assess the functioning of the large financial conglomerates