Finance Minister Nirmala Sitharaman on Wednesday, February 21, chaired the 28th meeting of the Financial Stability and Development Council (FSDC) in New Delhi. The FSDC deliberated on issues related to macro financial stability and India’s preparedness to deal with them. Its members also decided to strengthen inter-regulatory coordination.
Bhagwat Karad, Minister of State for Finance, also joined the FSDC meeting, along with distinguished dignitaries and officials representing various financial regulatory bodies, including RBI governor and secretaries of finance, expenditure, economic affairs, revenue, and financial services. Apart from these, chief economic advisor, Sebi chairperson, PFRDA chief and IFSCA chairman also attended the meeting.
“The FSDC, inter alia, deliberated on issues related to macro financial stability and India’s preparedness to deal with them. The ongoing inter-regulatory issues were also discussed to support GIFT IFSC in its strategic role to become one of the world’s premier international financial centres and perform its envisioned role of facilitating foreign capital and financial services for the domestic economy,” the finance ministry said in a statement.
According to the statement, the FSDC also discussed various issues related to the formulation of a strategy for implementing the decisions of the FSDC and the Union Budget announcements:
- Prescribing uniform KYC norms, inter-usability of KYC records across the financial sector, and simplification and digitalisation of the KYC process;
- Kickstarting fund-raising by social enterprises through social stock exchanges;
- To arrest the harmful effects of unauthorised lending through online apps and measures to curb their further spread.
“The FSDC considered the domestic and global macro-financial situation and emphasised that the members need to maintain constant vigilance and continue their proactive efforts towards detecting emerging financial stability risks and taking the necessary measures to maintain the resilience of the financial sector. The FSDC members also decided to strengthen inter-regulatory coordination to further develop the financial sector so that it continues to provide the requisite financial resources for inclusive economic growth,” the ministry said.
The FSDC also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor, RBI, and the action taken by members on the previous decisions of the FSDC.
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