Financial Stability and Development Council (FSDC)

Financial Stability and Development Council (FSDC)

News: Fresh measures to curb unauthorised online lending apps’ operations are going to be implemented, following deliberations on the issue at the Financial Stability and Development Council (FSDC).

About
• The Council made a reiteration of the push for regulators to simplify and digitize the KYC (Know Your Customer) process and adopt uniform KYC norms so that those KYC records can provide customers ‘interusability’ across the financial sector.
• The FSDC also discussed issues related to macro financial stability and the country’s preparedness to deal with any challenges that may come up.

Financial Stability and Development Council (FSDC)
• Set up in: December 2010, by an executive order.
• Aim: To strengthen and institutionalize the mechanism for maintaining financial stability, enhancing interregulatory coordination and promoting financial sector development.
• Parent body: Department of Economic Affairs, Ministry of Finance.
• FSDC Secretariat: Department of Economic Affairs.
• Chairman of the Council: The Finance Minister of India
• Members: Heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC), Finance Secretary and/or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services, and Chief Economic Adviser.
• Functions of the FSDC:
• To identify and address potential threats to financial stability,
• To formulate and implement financial sector development policies,
• To coordinate the activities of financial sector regulators,
• To promote financial inclusion and literacy, and
• To advise the Government on financial sector matters.