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UPSC FINANCIAL STABILITY AND DEVELOPMENT COUNCIL - English

FINANCIAL STABILITY AND DEVELOPMENT COUNCIL

Why in News?

Recently, the Union Minister of Finance and Corporate Affairs chaired the 26th Meeting of the 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.
• 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), and Chief Economic Adviser.
• In 2018, the government reconstituted FSDC to include the Minister of State responsible 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) and the Revenue Secretary.
• FSDC sub-committee is headed by the Governor of RBI.
• The Council can invite experts to its meeting if required.
• To strengthen and institutionalize the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.
• To monitor macro-prudential supervision of the economy. It assesses the functioning of large financial conglomerates.

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