fbpx

The Financial Stability and Development Council (FSDC) meeting held

  • IASbaba
  • June 2, 2020
  • 0
UPSC Articles
Print Friendly, PDF & Email

The Financial Stability and Development Council (FSDC) meeting held

Part of: GS-Prelims and GS-III – Economy

In News:

  • Recently, The Financial Stability and Development Council (FSDC) meeting was held through video conferencing. 
  • The meeting was chaired by the Indian Finance Minister. 

Key takeaways 

  • It was noted that the COVID-19 pandemic poses a serious threat to the stability of the global financial system since its impact and timing of recovery was still uncertain. 
  • It highlighted the need for the government and regulators to remain vigilant on financial conditions that could expose systemic vulnerabilities. 
  • It also assured that the government and regulators would continue to provide liquidity and capital support to domestic financial institutions.
  • Liquidity and solvency positions of non-banking financial companies, housing finance companies and micro-finance institutions were reviewed. 

Important value additions 

The Financial Stability and Development Council (FSDC) 

  • It is a non-statutory apex council under the Ministry of Finance. 
  • It was constituted by the Executive Order in 2010.
  • Its constitution was proposed by the Raghuram Rajan committee (2008) on financial sector reforms
  • It is chaired by the Finance Minister and its members include:
    • The heads of all Financial Sector Regulators (RBI, SEBI, PFRDA & IRDA)
    • Finance Secretary
    • Secretary of Department of Economic Affairs (DEA) 
    • Secretary of Department of Financial Services (DFS)
    • Chief Economic Adviser
    • Minister of State for the Department of Economic Affairs (DEA)
    • Secretary of Department of Electronics and Information Technology, 
    • Chairperson of the Insolvency and Bankruptcy Board of India (IBBI)
    • Revenue Secretary.
  • The Council can invite experts to its meeting if required. 
  • Objectives:
    • To strengthen and institutionalize the mechanism for maintaining financial stability
    • Enhancing inter-regulatory coordination
    • Promoting financial sector development
    • Assess the functioning of the large financial conglomerates.

For a dedicated peer group, Motivation & Quick updates, Join our official telegram channel – https://t.me/IASbabaOfficialAccount

Search now.....