With reference to 'Financial Stability and Development Council', consi

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?

1 and 2 only

3 only

2 and 3 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2016

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The correct option is C, as statements 2 and 3 are correct, while statement 1 is incorrect.

– Statement 1 is incorrect. The Financial Stability and Development Council (FSDC) was established by the Government of India in December 2010. It is not an organ of NITI Aayog. It is a high-level body within the Ministry of Finance.
– Statement 2 is correct. The FSDC is chaired by the Union Finance Minister of India.
– Statement 3 is correct. One of the key mandates of the FSDC is to monitor macroprudential supervision of the economy, focusing on financial sector stability and inter-regulatory coordination.

The FSDC also aims to strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination, promoting financial sector development, and resolving inter-regulatory disputes. Its members include the heads of financial sector regulators (RBI, SEBI, PFRDA, IRDAI) and other senior officials.

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