Financial Stability and Development Council (FSDC) meet

The Financial Stability and Development Council (FSDC) presided over Finance Minister reviewed the current global and domestic economic situation and financial sector performance.

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Why is it in the news ?

  • The Financial Stability and Development Council (FSDC) presided over Finance Minister reviewed the current global and domestic economic situation and financial sector performance.
  • RBI Governor Urjit Patel, financial sector regulators and top officials of the Finance Ministry attended the meeting.

More in the news

  • The council discussed the issue of real interest rate, current liquidity situation, including segmental liquidity position in NBFCs.
  • The panel decided that the regulators and the government will keep a close watch on developments and take all necessary measures.
  • The panel also deliberated on the issues and challenges of Crypto Assets/Currency.
  • An appropriate legal framework  is to devise to ban use of  private crypto currencies in India.
  • The council also suggested encouraging the use of Distributed Ledger Technology, as announced in the Budget 2018-19.

Cyber Security

  • FSDC took note of the developments regarding strengthening of Cyber Security in Financial Sector.
  • This  includes progress made towards setting up of a Computer Emergency Response Team in the Financial Sector (CERT-Fin) under a Statutory Framework.
  • The Council also deliberated on the need for identifying and securing critical information infrastructure in financial sector.

Financial Stability and Development Council (FSDC)

  • Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India.
  • The FSDC is headed by the Finance Minister and comprises the RBI Governor, the SEBI Chairman, and heads of regulators such as PFRDA, IRDAI.
  • Finance Secretary, Department of Economic Affairs, Secretary, Department of Financial Services and Chief Economic Adviser are also members of FSDC.
  • It works to strengthen and institutionalise the mechanism of maintaining financial stability.
Other Objectives of FSDC are:
  • Financial stability
  • Financial sector development
  • Financial literacy
  • Financial inclusion
  • • Macro prudential supervision of the economy.