FM Sitharaman chairs 24th Financial Stability and Development Council meet

Finance Minister Nirmala Sitharaman on Friday chaired the 24th meeting of the Financial Stability and Development Council (FSDC) at Vigyan Bhawan, New Delhi. The meeting was held to discuss the state of the financial sector and a strategy to support the nascent recovery of the pandemic-hit economy.

Apart from Finance Minister Nirmala Sitharaman and Union Minister Of State For Finance Pankaj Chaudhary, Secretaries and members of the Financial Stability and Development Council (FSDC) also attended the meeting on Friday.

Attendees deliberated on the various mandates of the FSDC such as financial stability, financial sector development, inter-regulatory coordination, financial literacy, financial inclusion, and macro-prudential supervision of the economy, including the functioning of large financial conglomerates etc, a Finance Ministry statement.

During the meeting of the FSDC, it was noted that there is a need for the government and all regulators to keep a continuous vigil on the financial conditions.

Among other things, the Financial Stability and Development Council discussed issues relating to the management of stressed assets, strengthening institutional mechanism for financial stability analysis, financial inclusion and framework for the resolution of financial institutions.

In August, Sitharaman had announced a Rs 6 lakh crore National Monetisation Pipeline (NMP) that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways.

The council also considered issues related to Insolvency and Bankruptcy Code (IBC) processes, banks' exposure to various sectors and the government, data sharing mechanisms of government authorities, internationalisation of Indian Rupee and pension sector related issues.

The FSDC also took note of the activities undertaken by the council's sub-committee, which is chaired by RBI Governor Shaktikanta Das, and the action taken by members on the past decisions of FSDC, according to the Ministry of Finance.

The previous FSDC meeting was held on December 15, 2020.

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