Financial Stability And Development Council (FSDC)
News: FinMin, RBI divided on NBFC liquidity situation.
Source: Business Standard
Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008. Finally in 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
FSDC is not a statutory body. The recent global economic meltdown has put pressure on governments and institutions across the globe to regulate their economic assets. This council is seen as India's initiative to be better conditioned to prevent such incidents in future.
The new body envisages to strengthen and institutionalize the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of economy. No funds are separately allocated to the council for undertaking its activities.
Composition of the council
Chairperson: The Union Finance Minister of India
Governor Reserve Bank of India (RBl),
Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA),
Secretary, Department of Financial Services (DFS),
Secretary, Ministry of Corporate Affairs,
Secretary, Ministry of Electronics and Information Technology,
Chief Economic Advisor, Ministry of Finance,
Chairman, Securities and Exchange Board of India (SEBI),
Chairman, Insurance Regulatory and Development Authority (IRDA),
Chairman, Pension Fund Regulatory and Development Authority (PFRDA),
Chairman, Insolvency and Bankruptcy Board of India (IBBI),
Additional Secretary, Ministry of Finance, DEA, will be the Secretary of the Council
The Chairperson may invite any person whose presence is deemed necessary for any of its meeting(s).
Financial Sector Development
Macro prudential supervision of the economy including the functioning of large financial conglomerates
Coordinating India's international interface with financial sector bodies like the Financial Action Task Force (FATF), Financial Stability Board (FSB)and any such body as may be decided by the Finance Minister from time to time.