FINANCIAL STABILITY AND DEVELOPMENT COUNCIL (FSDC)

Why in News?                                                                                                        

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired the 28^th 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.