16th meeting of Financial Stability Development Council held in New Delhi

The 16th meeting of the Financial Stability and Development Council (FSDC) was held on 5 January 2017 in New Delhi. The meeting was chaired by Union Finance Minister Arun Jaitley.

The meeting, which was attended by heads of all financial sector regulators, discussed the problems of the Indian economy.

The major issues discussed in the meeting are non-performance assets (NPAs) of banks, steps taken to improve financial literacy, the status of financial inclusion measures andproblems and opportunities associated with financial technology.

Besides, the participants in the meeting also discussed recently announced demonetisation measures and their impact on common man and the Indian economy as a whole.

About Financial Stability and Development Council

• Genesis: The idea was mooted by the Committee on Financial Sector Reforms in 2008. The committee was headed by former Reserve Bank of India (RBI) Governor Raghuram Rajan.

• After the consideration of the committee’s report, the Union Government formed the Financial Stability and Development Council (FSDC) in December 2010.

• Objectives: The objectives of the FSDC include institutionalising mechanisms to maintain financial stability, financial sector development, inter-regulatory coordination and monitoring macro-prudential regulation of economy.

• Composition: The FSDC is chaired by the Union Finance minister. Apart from the chairperson, the council includes the heads of financial sector regulatory authorities like the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance and Regulatory Authority of India (IRDA) and the Pension Fund Regulatory Authority of India (PFRDA) as members.

• The council is authorised to invite experts in the financial sector to its meeting if required.

• FSDC Sub-Committee: The FSDC Sub-committee has been set up under the chairmanship of RBI governor.

• The Sub-Committee meets more often than the full Council. All the members of the FSDC are also the members of the Sub-committee.

• Additionally, all four Deputy Governors of the RBI and Additional Secretary, DEA, are also members of the Sub Committee.