Financial Stability and Development Council (FSDC)

In News 

• The 25th meeting of the Financial Stability and Development Council (FSDC) was held in Mumbai, under the Chairpersonship of Union Finance Minister Smt. Nirmala Sitharaman. 
  • The Council deliberated on the various mandates of the FSDC and major macro-financial challenges arising in view of global and domestic developments.

About Financial Stability and Development Council (FSDC)

• It is a non-statutory apex council under the Ministry of Finance constituted by the Executive Order in 2010. 
  • The Raghuram Rajan Committee (2008) on financial sector reforms first proposed the creation of FSDC.
• Composition of FSDC:
  • Chairperson: The Union Finance Minister of India.
  • 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, Chief Economic Advisor, Ministry of Finance.
  • Other members include the Chairman of SEBI, IRDA, PFRDA and IBBI

• The FSDC Sub Committee is Chaired by the Governor of the RBI.
  • All the members of the FSDC are also members of the Sub-committee.

• Aims and Objectives: 
  • To strengthen and institutionalise the mechanism of maintaining financial and macroeconomic stability.
  • To enhance inter-regulatory coordination and promote financial sector development.
  • It also focuses on financial literacy and financial inclusion.
  • Coordinating India’s international interface with financial sector bodies such as the Financial Action Task Force (FATF) and Financial Stability Board (FSB).

Source: BS