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?

References state FSDC is not a statutory body and NITI Aayog is non-constitutional and non-statutory, which is central to judging institutional relationships.

High-yield for UPSC governance questions: distinguishing how bodies are created (executive resolution, statute, or Constitution) determines powers, accountability and hierarchy. Helps answer questions on institutional design, oversight and legal status. Prepare by memorising examples (e.g., FSDC, NITI Aayog) and the implications of each status.

Evidence describes FSDC as an apex-level forum set up by the Government, chaired by the finance minister with members from financial regulators — indicating its independent inter-regulatory role rather than being an organ of NITI Aayog.

Useful for GS3 and governance: questions often ask about regulatory architecture, inter-regulatory coordination and institutional roles. Knowing FSDC's purpose and membership helps distinguish it from planning/advisory bodies. Learn by noting mandate, membership and creation mode.

References describe NITI Aayog as an advisory think-tank with a Governing Council of chief ministers and as non-statutory — relevant to whether other bodies (like FSDC) fall under it.

Frequently tested: differences between Planning Commission and NITI Aayog, their powers and roles in federal governance. Mastering this helps answer questions on cooperative federalism, policy advisory mechanisms and institutional change. Study by comparing functions, composition and examples of attached/autonomous bodies.

Reference [1] identifies FSDC's origin (Dec 2010), non‑statutory status, role as apex financial forum, and its member composition.

Understanding the institutional architecture of FSDC is high‑yield for Economy/Governance topics—questions often ask about bodies' statutory status, origin, and membership. It connects to regulation (RBI, SEBI, IRDA, IBBI) and helps answer comparative questions on financial oversight. Study strategy: memorise origin, statutory status, chair and typical members; relate to other financial institutions.

Reference [1] shows the finance minister chairs FSDC; reference [2] shows the Union Finance Minister chairs the GST Council—indicating a recurring role.

Knowing which central minister chairs key economic councils is frequently tested in prelims and useful in mains answers on governance and fiscal federalism. It links institutional roles across economic governance (e.g., councils vs commissions). Preparation: compile a short table of major councils and their chairpersons (FSDC, GST Council, etc.) and revise regularly.

The statement asks about FSDC's role; reference [1] explicitly names macroprudential supervision as an FSDC function.

High-yield for UPSC questions on financial regulation and stability. Understanding this concept helps answer questions about systemic risk, regulation of conglomerates, and the difference between micro- and macroprudential policies. Prepare by mapping stated institutional responsibilities (like FSDC) to these policy objectives and practising application-style questions on systemic risk management.

Reference [2] links the biannual FSR to assessments made by the FSDC sub-committee on financial stability risks.

Useful for questions on monitoring mechanisms and accountability: shows how institutional assessments are produced and disseminated. Master by reviewing the role and frequency of such reports, and how they reflect inter-agency assessments; this enables answering questions on institutional coordination and evidence-based policy.