Economics • Banking & FinanceHard
What is the structural mandate and composition of the 'Financial Stability and Development Council' established in India?
A. It is a statutory corporate body chaired by the Governor of the Reserve Bank of India to oversee retail banking fraud investigations
B. It is an apex-level apex forum chaired by the Union Finance Minister to deliberate on macro-prudential supervision and financial inclusion✓ Correct Answer
C. It is an autonomous judicial tribunal tasked with arbitrating commercial disputes between foreign institutional investors and domestic bourses
D. It is a specialized research wing of NITI Aayog responsible for auditing state-level fiscal deficit targets and cooperative bank portfolios
💡 Solution & Explanation
The Financial Stability and Development Council is an apex-level forum chaired by the Union Finance Minister, set up by the Government of India to strengthen and institutionalize financial stability monitoring. Its members include the heads of financial sector regulators such as the Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority, and Pension Fund Regulatory and Development Authority. It addresses inter-regulatory coordination issues and macro-prudential regulation without possessing independent statutory powers of its own. The council was established following recommendations of the Raghuram Rajan Committee on Financial Sector Reforms.
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