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

Answer: (c) 2 and 3 only

The Financial Stability and Development Council (FSDC) is an apex body of the Government of India, chaired by the Union Finance Minister, that monitors macro-prudential supervision of the economy. It belongs to the Finance Ministry's set-up, not to NITI Aayog, so statements 2 and 3 are correct.

• ✗ 1. The Government set up the FSDC by a notification of 30 December 2010, from the Union Budget 2010-11 announcement; the Department of Economic Affairs in the Finance Ministry services it. It is not an organ of NITI Aayog.
• ✓ 2. The Chairman of the FSDC is the Finance Minister of India; its members are the heads of the financial regulators and senior Finance Ministry officials.
• ✓ 3. Without prejudice to the autonomy of regulators, the Council monitors macro-prudential supervision of the economy, including the functioning of large financial conglomerates.

Remember · FSDC (30 Dec 2010): non-statutory apex council chaired by the Union Finance Minister; watches financial stability, macro-prudential supervision and inter-regulatory coordination.

Question and answer: UPSC's official GS Paper I (2016, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). · Report an error