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RAS question

The Financial Stability and Development Council (FSDC) is chaired by:

Correct answer: (B) Finance Minister.

The Financial Stability and Development Council is chaired by the Union Finance Minister.

  1. (A)

    Prime Minister

  2. (B)

    Finance Minister

  3. (C)

    SEBI Chairman

  4. (D)

    RBI Governor

Explanation

The Financial Stability and Development Council sits under the Union Finance Minister's chairmanship: the official Department of Economic Affairs structure chart lists "Union Finance Minister (Chairman)" among FSDC members. That is why the answer is the Finance Minister, not a regulator. The same chart separates the Council from the FSDC Sub Committee, where the Governor of the RBI is listed as Chairman. The Council's membership also includes financial regulators such as RBI, SEBI, IRDAI, PFRDA and IBBI, along with senior finance officials and the Chief Economic Adviser. Its mandate covers financial stability, financial sector development, inter-regulatory coordination, financial literacy, financial inclusion and macro-prudential supervision.

Why the other options are wrong

  • (A) The Prime Minister is not the FSDC chair; the official structure names the Union Finance Minister as Chairman.
  • (C) The SEBI Chairman is listed as a member of the FSDC structure, not as the chair of the Council.
  • (D) The RBI Governor chairs the FSDC Sub Committee, while the main FSDC is chaired by the Union Finance Minister.

Concept

This tests institutional architecture in the Indian financial sector, especially which authority chairs coordination bodies. It recurs in RAS because finance-regulator roles are often confused between the Council and its Sub Committee.

Source

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