IAS Economy Practice Question . 1
A recent and significant development on the financial stability front has been the setting up of the Financial Stability and Development Council (FSDC) in India. Who heads this council?
Answer: Finance Minister
Financial Stability and Development Council (FSDC) is under the chairmanship of the Finance Minister with a wide mandate of systemic oversight, regulatory co-ordination, financial sector development and promotion of financial literacy and financial inclusion. A sub-committee under the chairmanship of Governor of the Reserve Bank acts as the operational arm of the FSDC. It provides a mechanism for co-ordination among regulators, and between regulators and the government which, as we realized during this crisis, is critically important, especially during stressed times.