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With reference to Financial Stability and Development Council (FSDC), consider the following statements:
1. The idea for its establishment was given by the Raghuram Raj an Committee.
2. It is a Statutory Body.
3. It is headed by the RBI Governor.
Which of the statements given above is/are correct?
  • a)
    1 and 3 only
  • b)
    2 and 3 only
  • c)
    1 only
  • d)
    2 only
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
With reference to Financial Stability and Development Council (FSDC), ...
Statement 1 is correct: Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008. Finally in 2010, the then Finance Ministry decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
Statement 2 is not correct: An apex-level FSDC is not a statutory body.
Statement 3 is not correct: It is headed by the Union Finance Minister of India. Its members include-
  • Governor Reserve Bank of India (RBI),
  • Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA),
  • Secretary, Department of Financial Services (DFS), o Secretary, Ministry of Corporate Affairs,
  • Secretary, Ministry of Electronics and Information Technology,
  • Chief Economic Advisor, Ministry of Finance,
  • Chairman, Securities and Exchange Board of India (SEBI),
  • Chairman, Insurance Regulatory and Development Authority (IRDA),
  • Chairman, Pension Fund Regulatory and Development Authority (PFRDA),
  • Chairman, Insolvency and Bankruptcy Board of India (IBBI).
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With reference to Financial Stability and Development Council (FSDC), consider the following statements:1. The idea for its establishment was given by the Raghuram Raj an Committee.2. It is a Statutory Body.3. It is headed by the RBI Governor.Which of the statements given above is/are correct?a)1 and 3 onlyb)2 and 3 onlyc)1 onlyd)2 onlyCorrect answer is option 'C'. Can you explain this answer?
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