FINANCIAL STABILITY AND DEVELOPMENT COUNCIL (FSDC)

About:

• Background: It was setup in 2010 by Indian Government as an executive body. It replaced the High Level Coordination Committee on Financial Markets (HLCCFM). The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008.
  
  
• Status: FSDC is not a statutory body. No funds are separately allocated to the council for undertaking its activities.
  
  
• Objective: Its objectives are to strengthen and institutionalize the mechanism for maintaining financial stability and Enhancing inter-regulatory coordination.
  
  
• Composition: It is chaired by the Union Finance Minister of India. The other 12 members are
  • Governor, RBI,
    
    
  • Chairman, SEBI,
    
    
  • Chairman, IRDA,
    
    
  • Chairman, PFRDA,
    
    
  • Minister of state responsible for the Department of Economic Affairs (DEA),
    
    
  • Secretary of Department of Electronics and Information Technology’,
    
    
  • Revenue secretary,
    
    
  • Finance Secretary and/or Secretary, Department of Economic Affairs;
    
    
  • Secretary, Department of Financial Services;
    
    
  • Secretary, Ministry of Corporate Affairs,
    
    
  • Chief Economic Adviser and
    
    
  • Chairperson of the Insolvency & Bankruptcy Board of India (IBBI).
    
    
  
  
  
• Sub-committee of FSDC: A sub-committee of FSDC has also been set up under the chairmanship of Governor RBI. It discusses and decides on a range of issues relating to financial sector development and stability including substantive issues relating to inter-regulatory coordination.