Financial Stability and Development Council (FSDC)
Source | Press Information Bureau
GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman chaired the 22nd Meeting of the Financial Stability and Development Council (FSDC).
- As part of the meeting, the council reviewed the current global and domestic macro-economic situation, financial stability and vulnerabilities issues.
- It also discussed the major issues likely to be faced by banks and other financial institutions as also regulatory and policy responses, Liquidity / Solvency of NBFCs/HFCs/MFIs and other related issues.
What you need to know about Financial Stability and Development Council (FSDC)?
- Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India.
- The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008.
- Finally in 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
- An apex-level FSDC is not a statutory body.
- No funds are separately allocated to the council for undertaking its activities.
- Chairperson: The Union Finance Minister of India is the chairperson of the Council. He/She may invite any person whose presence is deemed necessary for any of its meeting(s).
- Governor Reserve Bank of India (RBl),
- Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA),
- Secretary, Department of Financial Services (DFS),
- Secretary, Ministry of Corporate Affairs,
- Secretary, Ministry of Electronics and Information Technology,
- Chief Economic Advisor, Ministry of Finance,
- Chairman, Securities and Exchange Board of India (SEBI),
- Chairman, Insurance Regulatory and Development Authority (IRDA),
- Chairman, Pension Fund Regulatory and Development Authority (PFRDA),
- Chairman, Insolvency and Bankruptcy Board of India (IBBI).
- SECRETARY OF COUNCIL: Additional Secretary, Ministry of Finance, DEA, will be the Secretary of the Council.
ROLES AND RESPONSIBILITIES
The roles and responsibilities of the Council include maintenance of:
- Financial Stability
- Financial Sector Development
- Inter-Regulatory Coordination
- Financial Literacy
- Financial Inclusion
- Macro prudential supervision of the economy including the functioning of large financial conglomerates
It is also responsible for Coordinating India’s international interface with financial sector bodies like the Financial Action Task Force (FATF), Financial Stability Board (FSB) and any such body as may be decided by the Finance Minister from time to time.
Read More: CoAST India Platform | A GIS-Based Dashboard
Subscribe to our newsletter!
INDIATHINKERS is now on TELEGRAM as ExamGuideUpsc. Join our Channel to get the latest posts updates and other important quiz and pdf materials.