Rising against stressful financial situation, FM Sitharaman at FSDC focuses to resolve issues concerning banking, NBFCs

New Delhi, November 07: Amid stressful financial situation in India, Finance Minister Nirmala Sitharaman on Thursday reviewed the state of economy at the meeting of the Financial Stability and Development Council (FSDC) in the national capital.

 

"The meeting was very constructive and it took stock of entire financial system and other issues," said Finance Secretary Rajiv Kumar after the meeting that lasted nearly two hours. "RBI and other regulators are looking at financial at it holistically", he added when asked about stress in the financial sector.

 

 

The meeting reviewed the current global and domestic economic situation and financial stability issues, including those concerning banking and NBFCs. It also took stock of various governmental measures to boost the sagging growth which hit a six-year low of 5 per cent in the first quarter of the current fiscal.

 

RBI Governor, Securities and Exchange Board of India chairman Ajay Tyagi, Insurance Regulatory and Development Authority of India chairman Subhash Chandra Khuntia, Insolvency and Bankruptcy Board of India chairman M S Sahoo and Pension Fund Regulatory and Development Authority Ravi Mittal graced the meeting with the Finance Minister chairing the meet.

Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India. The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008.

 

This council is seen as India's initiative to be better conditioned to prevent such incidents in future. The new body envisages to strengthen and institutionalise the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of economy.