Q. With reference to the Financial Stability Development Council (FSDC), consider the following statements:
1.It is an institutional body established on the recommendations of the Raghuram Rajan Committee.
2.It is chaired by the Prime Minister of India.
3.Its function is to strengthen and institutionalize the mechanism for maintaining financial stability.
Which of the statements given above are correct?
Answer: A
Notes:
FSDC is a non-statutory apex council under the Ministry of Finance constituted by the Executive Order in 2010.
The Raghuram Rajan committee (2008) on financial sector reforms first proposed the creation of FSDC.
It is chaired by the finance minister.
Its function is to strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.
It monitors various macro-prudential activities of the Indian economy and is also responsible for the promotion of financial inclusion and literacy among the masses.
