FM Nirmala Sitharaman visits Mumbai; attends 25th FSDC meeting to discuss major macro-financial challenges

The 25^th meeting of the Financial Stability and Development Council (FSDC) was held in Mumbai, on Tuesday, February 22, 2022, under the Chairpersonship of Union Finance Minister Nirmala Sitharaman. As per reports, she is on a two-day post-Budget outreach visit to Mumbai, where she plan to meet with representatives of industry, financial market functionaries and bankers.

It is being said that the officials deliberated on the various mandates of the FSDC and major macro-financial challenges arising in view of global and domestic developments. The Council noted that Government and all regulators need to maintain constant vigil on the financial conditions and functioning of important financial institutions, especially considering that it could expose financial vulnerabilities in the medium and long-term. Discussions were held on measures required for further development of the financial sector and to achieve an inclusive economic growth with macroeconomic stability.

Authorities also discussed operational issues relating to currency management and took note of the activities undertaken by the FSDC Sub-Committee chaired by the RBI Governor and the action taken by members on the past decisions of FSDC.

The meeting was also attended by Dr. Bhagwat Kishanrao Karad, MoS (Finance); Shaktikanta Das, Governor, Reserve Bank of India; Dr. T. V. Somanathan, Finance Secretary and Expenditure Secretary;  Ajay Seth, Economic Affairs Secretary; Tarun Bajaj, Revenue Secretary; Sanjay Malhotra, Financial Services Secretary;  Ajay Prakash Sawhney, Secretary, Ministry of Electronics and Information Technology; Rajesh Verma, Secretary, Ministry of Corporate Affairs; Dr. V. Anantha Nageswaran, Chief Economic Adviser, Ministry of Finance and other officials.

FDSC has been set up by the government in consultation with financial market regulators, to strengthen and institutionalize the mechanism for maintaining financial stability, enhance inter-regulatory coordination and promote financial sector development. Without prejudice to the autonomy of regulators, the Council monitors macro-prudential supervision of the economy, including functioning of large financial conglomerates, and addresses inter-regulatory coordination and financial sector development issues. It also focuses on financial literacy and financial inclusion.