Economy2016
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 macroprudential supervision of the
economy. Which of the statements given above is/are correct?
Explanation
The correct option is 2 and 3 only. The Financial Stability and Development Council (FSDC) is not an organ of NITI Aayog; rather, it operates under the Ministry of Finance, with the Union Finance Minister as its head. It plays a crucial role in monitoring macroprudential supervision, aimed at ensuring financial stability and addressing systemic risks in the economy, which reflects the proactive approach to managing potential financial crises in India. The FSDC's focus on enhancing the soundness of the financial system aligns with broader goals of sustainable economic development, a key area of interest in UPSC preparations.
