The 26^th Meeting of the Financial Stability and Development Council (FSDC) was chaired by the Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman in Mumbai today.

The Council, inter alia, deliberated on the Early Warning Indicators for the economy and our preparedness to deal with them, improving the efficiency of the existing Financial/Credit Information Systems, issues of governance and management in Systemically Important Financial Institutions including Financial Market Infrastructures, strengthening cyber security framework in financial sector, Common KYC for all financial Services and related matters, update on Account Aggregator and next steps, Issues relating to financing of Power Sector, strategic role of GIFT IFSC in New Aatmanirbhar Bharat, inter-regulatory Issues of GIFT-IFSC, and need for utilisation of the services of Registered Valuers by all Government Departments.

It was noted that there is a need to monitor the financial sector risks, the financial conditions and market developments on a continuous basis by the Government and the regulators so that  appropriate and timely action can be taken so as to mitigate any vulnerability and strengthen financial stability.

The Council also took note of the preparation in respect of financial sector issues to be taken up during India’s G20 Presidency in 2023. 

The meeting was attended by Minister of State for Finance Dr. Bhagwat Kishanrao Karad; Minister of State for Finance Shri Pankaj Chaudhary; Reserve Bank of India Governor Shri Shaktikanta Das; Finance Secretary and Secretary in the Department of Expenditure (MoF) Dr. T. V. Somanathan; Secretary in the Department of Economic Affairs (MoF) Shri Ajay Seth; Secretary, Department of Revenue (MoF) Shri Tarun Bajaj; Secretary, Department of Financial Services (MoF) Shri Sanjay Malhotra; Chief Economic Adviser, Ministry of Finance Dr. V. Anantha Nageswaran; Chairperson, Securities and Exchange Board of India Ms. Madhabi Puri Buch; Chairperson, Insurance Regulatory and Development Authority of India Shri Debasish Panda; Chairperson, Pension Fund Regulatory and Development Authority Shri Supratim Bandyopadhyay; Chairperson, Insolvency and Bankruptcy Board of India Shri Ravi Mittal; Chairperson, International Financial Services Centres Authority, Shri Injeti Srinivas and the Secretary of the FSDC, Department of Economic Affairs.

Financial stability monitoring emphasised continuous surveillance and coordinated measures to mitigate systemic risks. Financial stability monitoring and preparedness were central, emphasising continuous surveillance of early warning indicators, financial sector risks and market developments to enable timely regulatory and governmental action to mitigate vulnerabilities; discussions also covered enhancements to Financial/Credit Information Systems, governance in systemically important institutions and market infrastructures, cyber security strengthening, Common KYC, Account Aggregator progress, power sector financing, and the strategic role and inter-regulatory issues of the GIFT IFSC.