Economy

FINANCIAL STABILITY AND DEVELOPMENT COUNCIL

Why in News

“Fresh measures to curb unauthorized online lending apps.”

 The Financial Stability and Development Council (FSDC) has been constituted via GOI notifi cation

dated 30th December, 2010.

 The Council focuses on issues relating to fi nancial stability, fi nancial sector development, inter–

regulatory coordination, fi nancial literacy, fi nancial inclusion and macro prudential supervision of

the economy including the functioning of large fi nancial conglomerates.

 Non-statutory apex body under the Ministry of Finance.

 The Council is chaired by the Union Finance Minister.

 Decisions are not legally binding.

 Its members are Governor, Reserve Bank of India; Finance Secretary and/or Secretary, Department

of Economic Aff airs; Secretary, Department of Financial Services; Chief Economic Adviser, Ministry

of Finance; Chairman, Securities and Exchange Board of India; Chairman, Insurance Regulatory and

Development Authority and Chairman, Pension Fund Regulatory and Development Authority.

 No funds are separately allocated to the Council for undertaking its activities.

FAIR AND REMUNERATIVE PRICE (FRP)

 FRP is the price declared by the government, which

mills are legally bound to pay to farmers for the

cane procured from them.

 Delays in payment can attract an interest up to

15% per annum, and the sugar commissioner can

recover unpaid FRP as dues in revenue recovery by

attaching properties of the mills.

 The payment of FRP across the country is governed

by the Sugarcane Control order, 1966 issued under

the Essential Commodities Act (ECA), 1955 which

mandates payment within 14 days of the date of delivery of the cane.

 It has been determined on the recommendation of the Commission for Agricultural Costs and

Prices (CACP) and announced by the Cabinet Committee on Economic Aff airs (CCEA). 1.CACP is an attached offi ce of the 

Ministry of Agriculture and Farmers 

Welfare.

 It is an advisory body whose 

recommendations are not binding 

on the Government.

 CCEA is chaired by the Prime 

Minister of India.