{"id":1867,"date":"2024-03-30T00:55:59","date_gmt":"2024-03-29T19:25:59","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1867"},"modified":"2024-04-03T07:09:38","modified_gmt":"2024-04-03T01:39:38","slug":"q-with-reference-to-financial-stability-and-development-council-consider-the-following-statements","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-with-reference-to-financial-stability-and-development-council-consider-the-following-statements","title":{"rendered":"Q.\u00a0With reference to \u2018Financial Stability and Development Council\u2019, consider the following statements:"},"content":{"rendered":"\n
    \n
  1. It is an organ<\/strong> of NITI Aayog.<\/li>\n\n\n\n
  2. It is headed by<\/strong> the Union Finance Minister<\/li>\n\n\n\n
  3. It monitors macro-prudential supervision of the economy.<\/li>\n<\/ol>\n\n\n\n

    Which of the statements given above is\/ are correct?<\/p>\n\n\n\n

      \n
    • 1 and 2 only<\/li>\n\n\n\n
    • 3 only<\/li>\n\n\n\n
    • 2 and 3 only<\/li>\n\n\n\n
    • 1, 2 and 3<\/li>\n<\/ul>\n\n\n\n
      \n

      Answer:<\/strong> (c) 2 and 3 only<\/strong><\/p>\n<\/blockquote>\n\n\n\n

      Financial Stability and Development Council:<\/h5>\n\n\n\n
        \n
      • It is a non-statutory apex council<\/strong>\u00a0under the\u00a0Ministry of Finance<\/strong>\u00a0constituted by the\u00a0Executive Order in 2010.<\/strong>\n
          \n
        • The Raghuram Rajan committee (2008) on financial sector reforms first proposed the creation of FSDC.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • Objective<\/strong>:\n
            \n
          • Strengthening and institutionalizing<\/strong> the mechanism for maintaining financial stability,<\/strong> enhancing inter-regulatory coordination<\/strong> and promoting financial sector development.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Composition:<\/strong>\n
              \n
            • It is chaired by the Finance Minister and its members include the heads of all Financial Sector Regulators (RBI, SEBI, PFRDA & IRDA),<\/strong>\u00a0Finance Secretary, Secretary of Department of Economic Affairs (DEA), Secretary of Department of Financial Services (DFS), and Chief Economic Adviser.\n
                \n
              • In 2018, the government reconstituted FSDC to include the Minister of State<\/strong> responsible for the Department of Economic Affairs (DEA), Secretary of Department of Electronics and Information Technology, Chairperson of the Insolvency and Bankruptcy Board of India (IBBI)<\/strong> and the Revenue Secretary.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
              • The Council can invite experts to its meeting if required.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
              • Functions:<\/strong>\n
                  \n
                • To strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.<\/li>\n\n\n\n
                • To monitor macro-prudential supervision<\/strong> of the economy. It assesses the functioning of large financial conglomerates.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                • Sub-committee of FSDC<\/strong>:\n
                    \n
                  • A sub-committee of FSDC has also been set up under the chairmanship of Governor RBI.<\/strong><\/li>\n\n\n\n
                  • It discusses and decides on a range of issues<\/strong> relating to financial sector development and stability, including substantive issues relating to inter-regulatory coordination.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                    Which of the statements given above is\/ are correct? Answer: (c) 2 and 3 only Financial Stability and Development Council:<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[57],"class_list":["post-1867","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-57"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":57,"label":"2016"}]},"featured_image_src_large":false,"author_info":{"display_name":"Ashish Singh","author_link":"https:\/\/lotusarise.com\/qna\/author\/sociology-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1867"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1867\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1867"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}