Union Finance Minister Chairs 28th Meeting of Financial Stability and Development Council

New Delhi: Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, presided over the 28th Meeting of the Financial Stability and Development Council (FSDC) in New Delhi today. The FSDC deliberated on crucial issues related to macro financial stability and India’s preparedness to address them. Inter-regulatory matters were also discussed, focusing on supporting the Gift City International Financial Services Centre (GIFT IFSC) to become a premier global financial hub.

Among the key topics discussed were the formulation of strategies for implementing FSDC decisions and Union Budget announcements. This included the establishment of uniform Know Your Customer (KYC) norms, inter-usability of KYC records across the financial sector, and the simplification and digitalization of the KYC process. The meeting also emphasized the need to initiate fundraising by social enterprises through social stock exchanges and implement measures to curb the harmful effects of unauthorized lending through online apps.

The FSDC, recognizing the importance of constant vigilance, assessed the domestic and global macro-financial situation. Members pledged to continue proactive efforts to detect emerging financial stability risks and take necessary measures to maintain the resilience of the financial sector. Strengthening inter-regulatory coordination was emphasized to foster the financial sector’s development, ensuring the provision of requisite financial resources for inclusive economic growth.

Additionally, the FSDC took note of the activities conducted by the FSDC Sub-Committee chaired by the Governor of the Reserve Bank of India (RBI) and reviewed actions taken by members on previous FSDC decisions.

The meeting was attended by Union Minister of State for Finance Dr. Bhagwat Kishanrao Karad, Shri Shaktikanta Das (Governor, RBI), Dr. T.V. Somanathan (Finance Secretary and Secretary, Department of Expenditure, Ministry of Finance), Shri Ajay Seth (Secretary, Department of Economic Affairs, MoF), Dr. Vivek Joshi (Secretary, Department of Financial Services, MoF), Shri Sanjay Malhotra (Secretary, Department of Revenue, MoF), Dr. Manoj Govil (Secretary, Ministry of Corporate Affairs), Shri S. Krishnan (Secretary, Ministry of Electronics and Information Technology), Dr. V. Anantha Nageswaran (Chief Economic Adviser, MoF), Ms. Madhabi Puri Buch (Chairperson, Securities and Exchange Board of India), Shri Debasish Panda (Chairperson, Insurance Regulatory and Development Authority of India), Dr. Deepak Mohanty (Chairperson, Pension Fund Regulatory and Development Authority), Shri Ravi Mital (Chairperson, Insolvency and Bankruptcy Board of India), Shri K. Rajaraman (Chairperson, International Financial Services Centres Authority), and the Secretary of the FSDC, Department of Economic Affairs, MoF.