Financial Stability Council Addresses Macro-Financial Concerns, Stresses Regulatory Coordination
New Delhi: Strengthening inter-regulatory coordination in financial sector to support inclusive economic growth in the country, Financial Stability and Development Council (FSDC), chaired by Union finance minister Nirmala Sitharaman, on Wednesday deliberated a range of critical issues concerning macro-financial stability, including matters related to Know-Your-Customer (KYC) norms among others. Besides, it also emphasised a constant vigil and proactive efforts towards detecting emerging financial stability risks in the domestic as well as global macro-financial situation.
Addressing the 28th meeting of FSDC, Ms Sitharaman said that financial sector regulators, including the Reserve Bank of India (RBI), need to take further measures to check spread of unauthorised lending through online apps. She further asked regulators to maintain constant vigil and be proactive towards detecting emerging financial stability risks, given the domestic and global macro-financial situation.
"The FSDC considered the domestic and global macro-financial situation and emphasised that the members need to maintain constant vigilance and continue their proactive efforts towards detecting emerging financial stability risks and taking the necessary measures to maintain the resilience of the financial sector," the finance ministry said in a statement, adding that the council members will strengthen inter-regulatory coordination to further develop the financial sector so that it continues to provide the requisite financial resources for inclusive economic growth.
As India wants to be a global economic powerhouse, platforms like the FSDC can play a pivotal role in shaping policies and regulations to navigate the complexities of the financial landscape. One of the main objectives of the FSDC meeting was to ensure macro-prudential supervision of the economy, including monitoring the functioning of large financial conglomerates.
With the government’s commitment to maintaining a robust and resilient financial system that not only fosters economic growth, but also safeguards the interests of all stakeholders, the finance ministry in its statement also said that it would kick-start fund-raising by social enterprises through social stock exchanges and take further measures to check spread of unauthorised lending through online apps.
The FSDC, established by the government in December 2010, generally serves as the apex forum aimed at fortifying financial stability, fostering inter-regulatory coordination, and advancing the development of the financial sector in the country. The meeting, held under Ms Sitharaman’s stewardship, was also attended by her deputy Dr Bhagwat Karad, minister of state for finance, along with esteemed dignitaries and top officials from various financial regulatory bodies.
