About Financial Stability and Development Council (FSDC):
- It is an apex-level forum constituted by the Government of India in December 2010.
- Status: FSDC is not a statutory body. No funds are separately allocated to the council for undertaking its activities.
- Objective: Strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.
- Composition:
- It is chaired by the Union Finance Minister of India.
- Its members include the 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.
- The Council can invite experts to its meeting if required.
- Functions:
- It monitors macroprudential supervision of the economy, including the functioning of large financial conglomerates.
- It addresses inter-regulatory coordination and financial sector development issues.
- It also focuses on financial literacy and financial inclusion.
- 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.
