Introduction
The Financial Stability and Development Council (FSDC) is an apex body established by the Indian government. The Raghuram Rajan Committee proposed the formation of a super regulatory body in 2008. Finally, in 2010, India’s then-Finance Minister, Pranab Mukherjee, decided to create an independent body to deal with macroprudential and financial regularities in the country’s financial sector. The new body aims to reinforce and institutionalize the mechanisms for financial stability, financial sector growth, inter-regulatory cooperation, and macro-prudential regulation monitoring in the economy.
An FSDC at the top is a non-statutory apex body under the Ministry of Finance in 2010. Governments and organizations all over the world are under pressure to control their economic assets as a result of the recent global economic crisis. This council is seen as India’s effort to improve its readiness to deter future incidents. There are no separate funds allocated for the council to carry out its functions.It’s operations and funds are decided during the time of Union Budget.
FSDC: Composition
Chairperson: The Union Finance Minister of India
Council Members:
- 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)
- Additional Secretary, Ministry of Finance, DEA, will be the Secretary of the Council
For all of its meetings, the Chairperson has the authority to invite someone whose participation is considered appropriate.
FSDC: Responsibilities
The following are the FSDC’s responsibilities:
- Bringing financial stability to the sector
- The Financial Sector’s Development
- Inter-Regulatory Bodies Coordination
- Educating people about money
- Ensure financial accessibility
- The economy is subject to macroprudential regulation, which includes the operation of large financial conglomerates.
- Coordinating India’s foreign interactions with financial sector bodies such as the Financial Action Task Force (FATF), the Financial Stability Board (FSB), and other bodies as the Finance Minister can determine from time to time
23rd Meeting of the Financial Stability and Development Council
Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs, chaired the 23rd Meeting of the Financial Stability and Development Council (FSDC) via video conference held in December 2020. The meeting discussed major macroeconomic developments and financial stability concerns (both global and domestic), with a focus on vulnerability-related issues, and noted that policy steps taken by the Government of India and financial sector regulatory authorities have resulted in a faster economic recovery in India, as evidenced by the GDP contraction in Q2 of 2020-21.
According to the discussions, further steps may be needed to ensure consistent financial sector support in order to achieve faster real economic growth and meet overall macroeconomic goals while maintaining financial stability. The Council also addressed the RBI’s and other regulators’ budget proposals.
Also Read:
SBI Clerk 2021: How to Prepare for Quantitative Aptitude?
May 7: Historical Important Events of May 7
Get Free Online Test Series, GK updates in form of Beepedia, as well as latest updates for Bank PO, Bank Clerk, SSC, RBI, NABARD, and Other Government Jobs.
