Mumbai: The Financial Stability and Development Council (FSDC) on Tuesday met under the chairpersonship of Union Finance Minister Nirmala Sitharaman. The Council noted the need for a constant vigil on financial conditions and the functioning of financial institutions in the country.
The Council deliberated on the various mandates of the FSDC and major macro-financial challenges arising in view of global and domestic developments, Finance Ministry said in a statement.
The Council noted that the Government and all regulators need to maintain a constant vigil on the financial conditions and functioning of important financial institutions, especially considering that it could expose financial vulnerabilities in the medium and long-term, it said.
The Council also discussed measures required for further development of the financial sector and to achieve inclusive economic growth with macroeconomic stability.
Nirmala Sitharaman is on a two-day post-Budget outreach visit to Mumbai, where she is meeting with representatives of industry, financial market functionaries and bankers, the Finance Ministry said. The Council, chaired by the Finance Minister, also discussed operational issues relating to currency management.
It also took note of the activities undertaken by the FSDC Sub-Committee chaired by the RBI Governor and the action taken by members on the past decisions of FSDC.
The Financial Stability and Development Council has been set up by the government in consultation with financial market regulators, to strengthen and institutionalise the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development. Without prejudice to the autonomy of regulators, the Council monitors macro-prudential supervision of the economy, including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues.
It also focuses on financial literacy and financial inclusion. The 25th FSDC meeting was also attended by Bhagwat Kishanrao Karad, Union Minister of State for Finance; Shaktikanta Das, Governor, Reserve Bank of India; T V Somanathan, Finance Secretary; Ajay Seth, Economic Affairs Secretary; Tarun Bajaj, Revenue Secretary; Sanjay Malhotra, Financial Services Secretary; V Anantha Nageswaran, Chief Economic Adviser, Ministry of Finance; Ajay Tyagi, Chairperson, Securities and Exchange Board of India; Supratim Bandyopadhyay, Chairperson, Pension Fund Regulatory and Development Authority; and Injeti Srinivas, Chairperson, International Financial Services Centres Authority.