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 macro-prudential supervision of the economy. Which of the sta

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Q: 31 (IAS/2016)
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 macro-prudential supervision of the economy.
Which of the statements given above is/are correct?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,194,122,24,50,194,48

keywords: 

{'union finance minister': [0, 0, 1, 0], 'development council': [0, 0, 0, 4], 'financial stability': [0, 0, 0, 5], 'organ': [3, 0, 1, 0], 'niti aayog': [2, 0, 0, 2], 'economy': [1, 3, 8, 35]}

The correct answer is Option 3: 2 and 3 only.

Statement 1: "It is an organ of NITI Aayog."

This statement is incorrect. The Financial Stability and Development Council (FSDC) is not an organ of NITI Aayog. NITI Aayog, or the National Institution for Transforming India, is a policy think-tank of the Government of India, while FSDC is a separate entity.

Statement 2: "It is headed by the Union Finance Minister."

This statement is correct. The FSDC is chaired by the Union Finance Minister of India. The Finance Minister serves as the ex-officio Chairman of FSDC and provides overall guidance and direction to the council.

Statement 3: "It monitors macro-prudential supervision of the economy."

This statement is correct. The FSDC is responsible for monitoring and overseeing the macro-prudential supervision of the economy. It assesses and addresses risks to the financial stability of the country, including systemic risks arising from the financial sector.

Additional Information:

The Financial Stability and Development Council (FSDC) was established in 2010 by the Government of India as an apex-level body for the purpose of strengthening and institutionalizing the framework for maintaining financial stability, financial sector development, inter-regulatory coordination, and monitoring macro-prudential supervision of the economy. The FSDC includes representatives from various financial sector regulators in India, such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA), among others.

In conclusion, the correct statements are:

Statement 2: "It is headed by the Union Finance Minister."

Statement 3: "It monitors macro-prudential supervision of the economy."

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