FSLRC was established to recommend reforms in India's financial sector laws. It aimed to simplify financial regulations, improve consumer protection and strengthen the financial system.
Financial Sector Legislative Reforms Commission (FSLRC) aimed to streamline and modernize the laws governing India's financial sector.
The overall goal is to enhancing financial stability and promoting growth.
Which of the statements given above is/are correct?
Correct Answer:
(C) Both 1 and 2
The Financial Sector Legislative Reforms Commission (FSLRC) was a high-level committee established by the Indian government in March 2011 to review and reform the financial sector's legal and regulatory framework. Headed by retired Supreme Court Judge B.N. Srikrishna, the FSLRC aimed to streamline and modernize the laws governing India's financial sector, with the goal of enhancing financial stability and promoting growth.
Ques: 2
Who among the following heads the Financial Sector Legislative Reforms Commission:
Correct Answer:
(B) B.N.Srikrishna
The Financial Sector Legislative Reforms Commission (FSLRC) was chaired by Justice (Retd.) B.N. Srikrishna. The commission had ten members with expertise in finance, economics, law, and other relevant fields.
Ques: 3
Consider the following statements:
The financial sector consists of all institutions dealing with financial products.
The financial sector is responsible for adequate money flow.
Which of the statements given above is/are correct?
Correct Answer:
(C) Both 1 and 2
The financial sector consists of all institutions dealing with financial products. They provide financial services to citizens or businesses.
The financial sector reforms bring changes to this sector. It can be anything from operation guidelines to the entry of foreign entities.
The financial sector covers banks, insurance businesses, investment funds, NBFCs, etc. These companies can be government-owned or private.
The financial sector is responsible for adequate money flow. They allow money from savers to reach borrowers.
For example, banks and stock exchanges allow people to invest or save money. They further use these deposits to fund companies or individuals.
Ques: 4
Raghuram Rajan committee on financial reforms gave proposals of:
Correct Answer:
(C) Creating more efficient and liquid markets
The Raghuram Rajan committee on financial reforms was a committee constituted by the government of India in 2007. It gave proposals on the following:
Macroeconomic and Financial development
Broadening Access to finance
Levelling the playing field
Creating more efficient and liquid markets
A growth-friendly regulatory framework
Creating a robust infrastructure for credit
Ques: 5
What are the recommendations of the Financial Sector Legislative Reforms commissions:
Proposal for the Indian Financial Code
Establishment of a Monetary Policy Committee
Public debt management
Choose the correct answer using the codes given below:
Correct Answer:
(D)
All of the above
Key recommendations:
Replacing a substantial portion of existing financial laws
Monetary Policy committee
Public debt management
Indian Financial code
Streamline and modernize the Indian Financial system