• 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.
• 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.
Mains Paper 2: Polity
Prelims level: Financial Stability and Development Council
Mains level: Government policies and interventions for development