The Committee on Financial Sector Assessment is Co-chaired by whom?
- (a)Governor of Reserve Bank of India and Finance Minister of India
- (b)Deputy Governor of Reserve Bank of India and Finance Secretary Government of India
- (c)Governor and Deputy Governor of Reserve Bank of India
- (d)Prime Minister of India and Governor of Reserve Bank of India
Correct — B, the Deputy Governor of the Reserve Bank of India and the Finance Secretary, Government of India. The Committee on Financial Sector Assessment (CFSA), set up jointly by the Government of India and the RBI in 2006, was co-chaired by Dr. Rakesh Mohan, then Deputy Governor of the RBI, together with the Finance Secretary, Government of India. It carried out a self-assessment of India's financial sector against international standards and codes, submitting its report in 2009.
- (a)Governor of Reserve Bank of India and Finance Minister of India — The co-chairs were the Deputy Governor (not the Governor) and the Finance Secretary (not the Finance Minister).
- (c)Governor and Deputy Governor of Reserve Bank of India — This was a joint Government-RBI body, so one co-chair came from the Finance Ministry — not two officials from the RBI.
- (d)Prime Minister of India and Governor of Reserve Bank of India — Neither the Prime Minister nor the Governor co-chaired the committee.
The CFSA (2006-2009) was India's first comprehensive self-assessment of financial-sector stability, benchmarking banking, securities and insurance regulation against international standards and codes. Because it was a joint RBI-Government exercise, it was co-chaired from both sides — an RBI Deputy Governor and the Finance Secretary.
The trap is to pick the most senior-sounding names (Governor plus Finance Minister). The CFSA was an expert, official-level review, so its co-chairs were the Deputy Governor and the Finance Secretary, not the institutional heads.
- CFSA was set up in 2006 by the Government of India and the RBI; report submitted in 2009.
- Co-chairs: the Deputy Governor of the RBI (Dr. Rakesh Mohan) and the Finance Secretary, Government of India.
- Mandate: assess financial-sector stability and compliance with international standards and codes.
- Modelled on the IMF-World Bank Financial Sector Assessment Programme (FSAP).
- Choosing 'Governor plus Finance Minister' by seniority — it was the Deputy Governor plus the Finance Secretary
- Confusing the CFSA with the FSDC or the RBI's Financial Stability Report
As a 'who chaired/co-chaired committee X' factual — link CFSA to the RBI Deputy Governor and the Finance Secretary, 2006-09.
No directly related past PYQ was found.
- practice — not a real PYQ
The Committee on Financial Sector Assessment (CFSA) was set up jointly by the Reserve Bank of India and which body?
- (a)SEBI
- (b)Government of India
- (c)NITI Aayog
- (d)International Monetary Fund
Answer(b) Government of India.
- practice — not a real PYQ
The apex body chaired by the Union Finance Minister to strengthen inter-regulatory coordination and monitor financial stability in India is the:
- (a)Financial Stability and Development Council (FSDC)
- (b)Committee on Financial Sector Assessment
- (c)Financial Sector Legislative Reforms Commission
- (d)Securities Appellate Tribunal
Answer(a) Financial Stability and Development Council (FSDC).