The high-level Financial Stability and Development Council (FSDC), headed by Finance Minister Nirmala Sitharaman, on Thursday stressed on continuous monitoring of risks in the financial sector so that timely action can be taken to mitigate any vulnerability in the backdrop global uncertainties.
The FSDC meeting, which was attended by financial sector regulators and officials, also took note of the preparation in respect of financial sector issues to be taken up during India’s G20 Presidency in 2023.
“It was noted that there is a need to monitor the financial sector risks, the financial conditions and market developments on a continuous basis by the Government and the regulators so that appropriate and timely action can be taken so as to mitigate any vulnerability and strengthen financial stability,” the finance ministry said in a statement.
The council also deliberated on the early warning indicators for the economy and the preparedness to deal with them, improving the efficiency of the existing financial/ credit information systems, and issues of governance and management in systemically important financial institutions.
During the meeting, strengthening cyber security framework in financial sector and common KYC for all financial services and related matters too were discussed.
Other matters taken up by the council included update on account aggregator and next steps; issues relating to financing of power sector; strategic role of GIFT IFSC in Aatmanirbhar Bharat; inter-regulatory issues of GIFT-IFSC; and need for utilisation of the services of registered valuers by all government departments.
Among others, the 26th meeting of FSDC was attended by ministers of state for finance Bhagwat Kishanrao Karad and Pankaj Chaudhary, and Reserve Bank of India (RBI) Governor Shaktikanta Das.
Central banks across the world are raising interest rates to mitigate inflationary pressures emanating from supply disruptions amid the ongoing Russia-Ukraine war.