Financial Stability and Development Council

• Union Minister for Finance and Corporate Affairs Nirmala Sitharaman recently chaired the 24th meeting of the Financial Stability and Development Council.

• The meeting deliberated on the various mandates of the FSDC, viz., Financial Stability, Financial Sector Development, Inter-regulatory Coordination, Financial Literacy, Financial Inclusion, and Macro prudential supervision of the economy including the functioning of large financial conglomerates etc.

About:

• Financial Stability and Development Council (FSDC) is an apex-level body constituted in 2010 to strengthen and institutionalize the mechanism for maintaining financial stability.

• It is not a statutory body.

• It is chaired by the Union Finance Minister of India.

• Its members include the heads of financial sector regulators (RBI, SEBI, PFRDA, IRDA), Finance Secretary and/or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services, and Chief Economic Adviser.

• The Council monitors macro prudential supervision of the economy, including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues.

• It also focuses on financial literacy and financial inclusion.

• No funds are separately allocated to the Council for undertaking its activities.

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Mains Paper 2: Polity

Prelims level: Financial Stability and Development Council

Mains level: Government policies and interventions for development

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