The Financial Stability Development Council (FSDC), headed by finance minister Nirmala Sitharaman, on Tuesday asked regulators to keep up constant vigil on the financial sector, as it discussed various challenges posed by external and internal factors. The 25th FSDC meeting, held in Mumbai, attended by various financial sector regulators, including RBI governor Shaktikanta Das and Sebi chief Ajay Tyagi, comes against the backdrop of mounting tension between the US and Russia over Ukraine.
The FSDC also deliberated on measures needed to further develop the financial sector and to achieve inclusive economic growth while maintaining macroeconomic stability.
“The Council noted that the 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,” according to a finance ministry statement.
The meeting also deliberated on operational issues relating to currency management and also took stock of the activities undertaken by the FSDC sub-panel chaired by the RBI governor and the action taken by members on the past decisions of FSDC, the ministry said.
The meeting was also attended by MoS for finance Bhagwat Kishanrao Karad, finance secretary TV Somanathan, economic affairs secretary Ajay Seth, revenue secretary Tarun Bajaj and financial services secretary Sanjay Malhotra, among others.
This was the first meeting of the FSDC after the presentation of Budget for FY23 on February 1. The last such meeting was held on September 3 last year.