Q. Consider the following statements regarding “Financial Stability and Development Council (FSDC)”:
1.The chairman of the council is Prime Minister.
2.The council deals with macro prudential supervision of the economy including the functioning of large financial conglomerates.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

Explanation: With a view to strengthening and institutionalizing the mechanism for maintaining financial stability and development, the Financial Stability and Development Council (FSDC) was set up as the apex level forum in 2010.

  • The Chairman of the Council is the finance minister and its members include the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC); Finance Secretary and/or Secretary, Department of Economic Affairs; Secretary, Department of Financial Services; and Chief Economic Adviser.
  • The Council deals with issues relating macro prudential supervision of the economy including the functioning of large financial conglomerates.

Source: Laxmikanth Governance