25th FSDC meeting held at Mumbai

Tags: Economics/Business

The 25th meeting of the Financial Stability and Development Council (FSDC) was held in Mumbai on 22 February 2022, under the Chairpersonship of Union Finance Minister Smt. Nirmala Sitharaman. 

The Council discussed measures required for further development of the financial sector and to achieve inclusive economic growth with macroeconomic stability.

The 25th FSDC meeting was also attended by

•  Dr. Bhagwat Kishanrao Karad, Minister of State ,Finance;

• Shaktikanta Das, Governor, Reserve Bank of India; 

• Dr. T. V. Somanathan, Finance Secretary and Expenditure Secretary;

•  Ajay Seth, Economic Affairs Secretary; 

• Tarun Bajaj, Revenue Secretary; 

• Sanjay Malhotra, Financial Services Secretary; 

• Ajay Prakash Sawhney, Secretary, Ministry of Electronics and Information Technology;

•  Shri Rajesh Verma, Secretary, Ministry of Corporate Affairs; 

• Dr. 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; 

• Injeti Srinivas, Chairperson, International Financial Services Centers Authority; 

• Mrs. T. L. Alamelu, Member, Insurance and Regulatory Development Authority of India; and the Secretary of the FSDC, Department of Economic Affairs, Ministry of Finance.

Financial Stability and Development Council (FSDC)

It was set up on the recommendation of the Raghu Ram Rajan committee on “ Financial Sector Reform”.

FSDC  was set up by the Government of India in 2010.

Aim of the FSDC 

It was set up to  strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.

The Chairman of the FSDC is the Finance Minister 

Who are the members of the FSDC ?

Ministers, Secretaries of the Government of India, Chief of the financial sector regulators and Chief Economic Advisor are the members of the FSDC.

They are as follows 

• Minister of State , Ministry of Finance,

• Insurance sector regulator : IRDAI (Insurance and Regulatory Authority of India ), Chairman 

• Banks regulator: RBI(Reserve Bank of India ) Governor 

• Capital Market regulator: SEBI(Securities Exchange Board  of India ),Chairman 

• Pension Market regulator: PFRDA(Pension Fund and Regulatory Development Authority of India ),Chairman 

• Regulator of IFSC(International Financial Service Center ): International Financial Services Centers Authority, Chairperson .

Secretary , Government of India 

• Finance Secretary and Expenditure Secretary; Ministry of Finance 

•  Economic Affairs Secretary; Ministry of Finance 

• Revenue Secretary; Ministry of Finance 

• Financial Services Secretary; Ministry of Finance 

• Secretary, Ministry of Electronics and Information Technology;

• Secretary , Ministry of Corporate Affair;

• Secretary of the FSDC, Department of Economic Affairs, Ministry of Finance.

 And the Chief Economic Advisor, Ministry of Finance .

Function of the FSDC 

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.

 Sub-Committee of FSDC

The FSDC Sub-committee has also been set up under the chairmanship of Governor, RBI. 

All the members of the FSDC are also members of the Sub-committee.

 All four Deputy Governors of the RBI  are also members of the Sub Committee. 

Note 

IRDAI Chairperson : Subhash Chandra Khuntia. He was not present in the meeting. 

Important Full Form for the Exam:

FSDC : Financial Stability and Development Council;

IRDAI : Insurance and Regulatory Authority of India;  

IFSC : International Financial Service Centre;

PFRDA : Pension Fund and Regulatory Development Authority of India