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Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired the 28th Meeting of the Financial Stability and Development Council (FSDC) in New Delhi.

What is Financial Stability and Development Council (FSDC)?

  • It is an apex-level forum constituted by the Government of India in December 2010.
  • Status: FSDC is not a statutory body. No funds are separately allocated to the council for undertaking its activities.
  • Objective: Strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.
  • Composition:
  • It is chaired by the Union Finance Minister of India.
  • Its members include the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC) Finance Secretary and/or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services, and Chief Economic Adviser.
  • The Council can invite experts to its meeting if required
  • Functions:
  • It monitors macroprudential supervision of the economy, including the functioning of large financial conglomerates.
  • It addresses inter-regulatory coordination and financial sector development issues.
  • It also focuses on financial literacy and financial inclusion.   
  • Sub-committee of FSDC:
  • A sub-committee of FSDC has also been set up under the chairmanship of Governor RBI.
  • It discusses and decides on a range of issues relating to financial sector development and stability, including substantive issues relating to inter-regulatory coordination.