FSDC
- ECONOMY
News: FSDC-SC resolves to remain vigilant
against external vulnerabilities
What's
in the news?
●
RBI Governor Shaktikanta Das-headed
Sub-Committee of the Financial Stability and Development Council (FSDC-SC)
resolved to remain vigilant against any build-up in vulnerabilities.
Key
takeaways:
●
With a view to strengthening and
institutionalising the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and
promoting financial sector development, the FSDC was set up by the
government as the apex level forum in December 2010.
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 (RBI),
Finance Secretary 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
Other
Key features:
●
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).