Financial Stability and Development Council (FSDC)

Financial Stability and Development Council : The Financial Stability and Development Council (FSDC) has been established by the Government of India dated 30th December, 2010. Among other things, the Council is involved in the control of financial stability, development of the financial sector, coordination between regulations, financial literacy, financial inclusion, and the macro-level stability of the economy, including the operation of large financial conglomerates. No separate funds have been allocated to the council to carry out its activities.

Financial Stability and Development Council

Financial Stability and Development Council Key Highlights

• The Council emphasized economic early warning indicators and readiness to address them, improvement of existing financial and credit information systems, and issues related to governance and management in systemically important financial institutions.
• It was recognized that the government and regulatory authorities must continuously monitor financial sector risks, financial conditions, and market developments in order to take appropriate and timely measures to reduce and strengthen potential vulnerabilities. financial stability.
• The Council noted preparations on financial sector issues to be raised during India's G20 Presidency in 2023.

FSDC Composition

• It is headed by the Finance Minister and its members include the heads of all financial sector regulators (RBI, SEBI, PFRDA and IRDA), the Finance Secretary, the Secretary of the Department of Economic Affairs (DEA), the Secretary of the Department of Financial Services (DFS) and the Chief Economic Adviser.
• In 2018, the government restructured the FSDC to include a minister of state in the Department of Economic Affairs (DEA), a secretary in the Department of Electronics and
• Information Technology and a chairman of the Insolvency and Bankruptcy Board of India (IBBI). . and Revenue Department. Secretary
• The FSDC sub-committee is chaired by the RBI Governor.
• If necessary, the Council can invite experts to its meeting.

Responsibilities of Financial Stability and Development

• Financial Stability
• Financial Sector Development
• Inter-regulatory Coordination
• Financial Literacy
• Financial Inclusion
• Overview of the macro-level stability of the economy including the activities of large financial conglomerates
• Coordination of India's international interface with financial institutions sectoral bodies such as Financial Action Task Force (FATF), Financial Stability Board (FSB), and some other bodies appointed by the Minister of Finance from time to time.
• The institutional structure of India's financial inclusion/literacy program is unique in that it has an apex body in the Financial Stability and Development Council (FSDC), headed by the Finance Minister, Government of India, whose mandate includes a focus on achieving financial inclusion/literacy goals.

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