With reference to ‘Financial Stability and Development Council’, consider the following statements:
- It is an organ of NITI Aayog.
- It is headed by the Union Finance Minister.
- It monitors macro-prudential supervision of the economy.
Which of the statements given above is/are correct?
Correct Answer: Option C
Statement 1: The Financial Stability and Development Council (FSDC) was established in December 2010 to strengthen financial stability, enhance inter-regulatory coordination, and promote financial sector development. This was before NITI Aayog was formed. Therefore, the FSDC is not an organ of NITI Aayog.
Statement 2: The Union Finance Minister is the Chairman of the FSDC. Its members include heads of financial sector regulators (RBI, SEBI, PFRDA, IRDA, and FMC), the Finance Secretary, the Secretary of the Department of Economic Affairs, the Secretary of the Department of Financial Services, and the Chief Economic Adviser. Therefore, Statement 2 is correct.
Statement 3: The FSDC monitors macro-prudential supervision of the economy, including the functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues. It also focuses on financial literacy and inclusion. Therefore, Statement 3 is correct.
Statement 1 is not correct. Statements 2 and 3 are correct. Hence, option c is the correct answer.
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