Context:

=> In the city of Mumbai, the Financial Stability and Development Council’s (FSDC) 25th meeting was held. This meeting was held under the chair of Finance Minister Nirmala Sitharaman.

Overview:

=> The council discussed the different mandates of the FSDC as well as important macro-financial concerns that have arisen as a result of certain domestic and global developments.

=> The council also stated that government, as well as other authorities, must keep a close watch on the financial operations and conditions of major financial institutions since this could expose financial vulnerabilities in the long and medium-term.

=> The council also talked about the steps that need to be taken to further expand the financial sector and ensure economic growth while maintaining macroeconomic stability.

=> The council also talked about currency management operational issues as well as noted the activities of the FSDC Sub-Committee, which is chaired by the RBI Governor, as well as the actions taken in response to previous FSDC judgments.

Attendees of the Financial Stability and Development Council’s 25th meeting

The meeting was also attended by:

• Shaktikanta Das Governor of RBI
• Bhagwat Kishanrao Karad, MoS (Finance)
• Ajay Seth, Economic Affairs Secretary
• T. V. Somanathan, Finance Secretary and Expenditure Secretary
• Sanjay Malhotra, Financial Services Secretary
• Tarun Bajaj, Revenue Secretary
• Rajesh Verma, Ministry of Corporate Affairs secretary
• Ajay Prakash Sawhney, MeitY Secretary
• Ajay Tyagi, SEBI Chaiperson
• V. Anantha Nageswaran, Chief Economic Adviser,
• Injeti Srinivas, Chairperson, International Financial Services Centres Authority
• Supratim Bandyopadhyay, PFRDA Chairperson
• Dr Shashank Saksena, Secretary of the FSDC
• T. L. Alamelu IRDAI

What was reason for setting up the Financial Stability and Development Council:

The government had set up the Financial Stability and Development Council in association with financial market regulators. This was done to institutionalize and strengthen the system for maintaining financial stability, improve inter-regulatory coordination, and promote financial sector development. The Council also supervises macro-prudential supervision of the economy, especially the functioning of big financial conglomerates, and resolves inter-regulatory coordination and development issues of the financial sector. It also focuses on promoting financial awareness.

By: ASRAF UDDIN AHMED