Financial institutions

The FSDC calls for constant vigilance on the functioning of financial institutions

The Financial Stability and Development Board (FSDC) met on Tuesday under the chairmanship of Union Finance Minister Nirmala Sitharaman. The Council noted the need for constant vigilance on the financial conditions and functioning of financial institutions in the country.

“The Board deliberated on the different mandates of the FSDC and the main macro-financial challenges that arise in view of global and national developments,” the finance ministry said in a statement.

The Council noted that the government and all regulators must maintain constant vigilance over the financial conditions and operation of significant financial institutions, especially as this could expose financial vulnerabilities in the medium to long term, he said. declared.

The Council also discussed the measures needed to further develop 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 meets with representatives from industry, financial market officials and bankers, the finance ministry said.

The Council, chaired by the Minister of Finance, also discussed operational issues relating to currency management. He also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor of the RBI and the follow-up given by the members to the previous decisions of the FSDC.

The Financial Stability and Development Board was established by the government in consultation with financial market regulators, to strengthen and institutionalize the mechanism for maintaining financial stability, improving inter-regulatory coordination and promoting financial sector development.

Without prejudice to the autonomy of regulators, the Council oversees macroprudential oversight of the economy, including the operation of large financial conglomerates, and deals with issues of interregulatory coordination and financial sector development. It also emphasizes 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; TV Somanathan, finance secretary; Ajay Seth, Secretary for Economic Affairs; Tarun Bajaj, Revenue Secretary; Sanjay Malhotra, Financial Services Secretary; V Anantha Nageswaran, Chief Economic Advisor, Ministry of Finance; Ajay Tyagi, Chairman, Securities and Exchange Board of India; Supratim Bandyopadhyay, Chairman, Pension Funds Regulatory and Development Authority; and Injeti Srinivas, President, International Financial Services Centers Authority.