Financial Stability and Development Council (FSDC) 19/06/2019 – Posted in: Press Information Bureau

Financial Stability and Development Council

(Ministry of Finance)

 

WHAT

The 20th Meeting of the Financial Stability and Development Council (FSDC) was held today under the Chairmanship of the Union Minister of Finance and Corporate Affairs.

 

HIGHLIGHTS

  • The Meeting reviewed the current global and domestic economic situation and financial stability issues including, inter-alia, those concerning Banking and NBFCs.
  • FinMin also discussed the problems faced by banks and non-bank lenders, stability of the financial sector and cyber security of the country with regulators here.
  • Apart from suggestions for FY20 Union Budget, the failure of corporate governance in some of the financial sector entities and ways to address it was also discussed.
  • The meeting also reviewed current global and domestic economic situation.

 

FINANCIAL STABILITY AND DEVELOPMENT COUNCIL

  • It is the apex body of financial sector regulators. The council, headed by the finance minister.
  • The FSDC was set up to create an institutional structure and mechanism for financial stability, financial sector development and inter-regulatory coordination.
  • It is charged with financial literacy, financial inclusion and macro prudential supervision of the economy, including the functioning of large financial conglomerates.
  • FSDC was constituted in 2010.
  • The council will act as a co-ordination agency between the various financial sector regulators- the RBI, SEBI, IRDA and the PFRDA.
  • This Council would monitor macro-prudential supervision of the economy, including the functioning of large financial conglomerates, and address inter-regulatory coordination issues.

 

RESPONSIBILITIES OF FSDC

  1. Financial Stability
  2. Financial Sector Development
  3. Inter-Regulatory Coordination
  4. Financial Literacy
  5. Financial Inclusion
  6. Macro prudential supervision of the economy including the functioning of large financial conglomerates
  7. 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.

 

Source: PIB

 

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