FM Chairs 24th Meeting Of FSDC

WHY IN THE NEWS?

Finance Minister, Nirmala Sitharaman, chaired the 24th meeting of Financial Stability and Development Council (FSDC) at Vigyan Bhavan, New Delhi.

Financial Stability and Development Council (FSDC)

FSDC is an apex-level body that was set by the government of India in order to create a super regulatory body. Its establishment was first recommended by the Raghuram Rajan Committee in 2008. Finally in 2010, Pranab Mukherjee (the then Finance Minister of India) decided to set up this autonomous body to deal with macro prudential and financial regularities of the entire financial sector in India. It is not a statutory body. No funds are allocated separately to the council to undertake its activities.

Background

In order to strengthen and institutionalize the mechanism of maintaining financial stability, to enhance inter-regulatory coordination and to promote financial sector development, FSDC was set up as the apex level forum in December 2010.

Function of the FSDC

This council is considered as India’s initiative to be better conditioned in preventing any economic crisis in future.

Members of the council

• Chairperson: Union Finance Minister of India
• Other Members:

1. Governor of Reserve Bank of India
2. Finance Secretary and/ or Secretary of Department of Economic Affairs
3. Secretary of Department of Financial Services
4. Secretary of Ministry of Corporate Affairs
5. Secretary of Ministry of Electronics and Information Technology
6. Chief Economic Advisor to Ministry of Finance
7. Chairman of Securities and Exchange Board of India
8. Chairman of Insurance Regulatory and Development Authority
9. Chairman of Pension Fund Regulatory and Development Authority
10. Chairman of Insolvency and Bankruptcy Board of India
11. Additional Secretary to Ministry of Finance