With reference to ‘Financial Stability and Develo- pment 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?
✓ Correct answer: c) 2 and 3 only
ExplanationStatement 1 is incorrect : The Financial Stability and Development Council (FSDC) was set up by the government in December 2010. It serves as the top forum for financial matters.The FSDC was established well before the NITI Aayog came into existence.Statement 2 is correct: The Chairman of the Financial Stability and Development Council (FSDC) is the Union Finance Minis- ter.Statement 3 is correct : The Council monitors macro-prudential supervision of the economy, which includes functioning of large financial conglomerates.The Chairman of the Financial Stability and Development Council (FSDC) is the Union Finance Minister and its mem- bers include :The heads of financial sector Regulators (RBI, SEBI, PFRDA & IRDAI)Finance Secretary and/or Secretary, Department of Economic Affairs,Secretary, Department of Financial Services,Chief Economic Adviser.The Council can invite experts to its meeting if required.Functions of the FSDC:To improve inter-regulatory coordination, institu-tionalise financial sector development, and strengthen the system for preserving financial s
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