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?
Detailed Explanation:
Answer: Option 3 — 2 and 3 only
❌ Statement 1 – Incorrect: The Financial Stability and Development Council (FSDC) is not an organ of NITI Aayog. It is an apex-level independent body constituted under the Ministry of Finance to strengthen and institutionalize the mechanism for maintaining financial stability.
✅ Statement 2 – Correct: The FSDC is chaired by the Union Finance Minister. The Council includes heads of financial sector regulators (RBI, SEBI, IRDA, PFRDA), Finance Secretary, and other senior officials.
✅ Statement 3 – Correct: The FSDC monitors macro-prudential supervision of the economy, including the functioning of large financial conglomerates. It assesses and addresses systemic risks to financial stability and coordinates among various financial sector regulators.
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