With reference to ‘Financial Stability and Development 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 macro-prudential supervision of the economy. Which of the statements given above is/are correct?

QUESTION

Medium

Economy

Prelims 2016

With reference to ‘Financial Stability and Development Council’, consider the following statements:

It is an organ of NITI Aayog.
It is headed by the Union Finance Minister.
It monitors macro-prudential supervision of the economy.

Which of the statements given above is/are correct?

Select an option to attempt

Explanation

Statement 1 is Incorrect: The FSDC is not an organ of NITI Aayog. It's a separate apex-level body under the Ministry of Finance.

Statement 2 is Correct: The FSDC is headed by the Union Finance Minister.

Statement 3 is Correct: The FSDC plays a crucial role in monitoring macro-prudential supervision of the economy. Macro-prudential supervision focuses on preventing systemic risks within the financial system that could destabilize the entire economy.

Therefore, the correct answer is 2 and 3 only.

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