23rd Meeting of FSDC- Key Highlights
Finance Minister Nirmala Sitharaman chaired the 23rd Meeting of the Financial Stability and Development Council (FSDC) through video conference on December 15, 2020.
- The 23rd meeting reviewed the major macro-economic developments.
- It also reviewed the Financial Stability issues. Special reference was given to the vulnerability related issues.
- The meeting also highlighted that the policy measures that the government has taken and the financial sector regulatory authorities have ensured faster economic recovery in India. This recovery was reflected in the reduced contraction of GDP in second quarter of 2020-21.
- Meeting also highlights that; the economy has gained momentum. It states, the path to recovery will be faster than it was predicted earlier.
- Discussions were also held on the further measures which are required to be taken in order to ensure the consistent support of the financial sector. This would help in achieving the faster real economic growth. It would also help in achieving the overall macroeconomic targets.
- The budget proposals submitted by RBI and other Regulators were also discussed during the meeting.
Financial Stability and Development Council (FSDC)
FSDC is an apex-level body that has been constituted by the government of India. The setting up of this super regulatory body was first put forward by in 2008 by the Raghuram Rajan Committee. Based on the recommendations, this body was set up in 2010 by the then Finance Minister of India, Pranab Mukherjee. The body deals with the macro prudential and financial regularities for the entire financial sector of India. FSDC is not a statutory body. This body helps in to regulate the economic assets of the country in a better manner. It seeks to strengthen and institutionalise the mechanism to maintain the financial stability, financial sector development and inter-regulatory coordination. Funds are not allocated separately for the council to undertake its activities.