22nd Financial Stability and Development Council meeting chaired by Finance Minister

On May 28, 2020, the Union Finance Minister Nirmala Sitaraman chaired Financial Stability and Development Council meet.

Highlights

The meeting reviewed current domestic and global economic situation, financial vulnerabilities issues, liquidity of Micro financial institutions, Non-Banking Financial corporations, regulatory responses, etc. The council noted that COVID-19 posed a great threat to the global financial system and the timing of recovery is uncertain.

About the Council

The financial stability and development council is an apex body constituted by GoI. The idea was mooted in 2008 by the Raghuram Rajan Committee. The Council was set up in 2010 by the then Finance Minister Pranab Mukerjee.

The council composes of Governor of RBI, chief economic advisor, secretaries and chairman of SEBI (Securities and Exchange Board of India), IRDA (Insurance Regulatory and Development Authority), PFRDA (Pension Fund Regulatory and Development Authority), IBBI (Insolvency and Bankruptcy Board of India). The Finance Minister chairs the meeting.

Functions of the council

The Council deals with issues such as financial sector development, financial stability, inter-regulatory coordination, financial inclusion, financial literacy.

Apart from these, the council also coordinates with India’s International interfaces such as Financial Action Task Force. The Financial Minister has powers to change the functions of the council from time to time. Currently, the council is working to deal with financial issues created by COVID-19.

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