Q. Consider the following statements about the proposed Public Debt Management Agency:

1. It aims to manage the public debt of the central and state governments
2. It will replace the existing SEBI (Securities and Exchange Board of India)

Which of the above statements is/are correct?
Answer: 1 Only
Notes: First statement is correct. Second statement is incorrect. Recently, the finance ministry proposed to set up a full-fledged independent public debt management agency, which will divest the RBI's role of public debt management. The main aim of setting up the Public Debt Management Agency (PDMA) is to resolve issues relating to conflict of interest as RBI decides on the key interest rates as well as undertakes buying and selling of government bonds. Currently, the Internal Debt Management Department of RBI manages the public debt of Government of India/ State Governments.

This question is part of UPSC Daily 20 MCQ Series Course on GKToday Android app.