May 29, 2020

Union Finance Minister chaired the 22nd Meeting of the Financial Stability and Development Council (FSDC) to review the current global and domestic macro-economic situation, financial stability and vulnerabilities issues etc.


  • 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.

Source : LiveMint