30 Jun 2020

Financial Stability and Development Council (FSDC)Quick read

  • It is a super regulatory body constituted by the government of India which deals with macro prudential and financial regularities in the entire financial sector of India.
  • FSDC has replaced the High Level Coordination Committee on Financial Markets  (HLCCFM), which was facilitating regulatory coordination, though informally, prior to the setting up of FSDC.
  • It is not a statutory body and only a recommendatory body
  • Chairperson: The Union Finance Minister of India
  • Members: Heads of the financial sector regulatory authorities (i.e., RBI, SEBI, IRDA, and PFRDA), Finance Secretary and/or Secretary, Department of Economic Affairs (Union Finance Ministry), Secretary, Department of Financial Services, and Chief Economic Adviser. FSDC can invite experts to its meeting if required.
  • The objectives of FSDC would be to deal with issues relating to: Financial stability • Financial sector development • Inter-regulatory coordination • Financial literacy • Financial inclusion • Macro prudential supervision of the economy including the functioning of large financial conglomerates. • Coordinating India’s international interface with financial sector bodies such as the Financial Action Task Force (FATF) and Financial Stability Board (FSB).
  • FSDC was formed to bring greater coordination among financial market regulators.

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