New Delhi, Feb 21 (IANS) Finance Minister Nirmala Sitharaman chaired the meeting of the Financial Stability and Development Council (FSDC) on Wednesday to discuss issues related to India’s macro financial stability and the preparedness to deal with them. The FSDC also discussed plans to formulate a strategy to simplify and digitalise the KYC process in the financial sector, along with the issue of kickstarting fund-raising by social enterprises through social stock exchanges.
During the meeting, the FSDC also addressed the harmful effects of unauthorised lending through online apps and discussed measures to curb their further spread. The ongoing inter-regulatory issues were taken up to support GIFT IFSC in its strategic role to become one of the world’s premier international financial centres and perform its envisioned role of facilitating foreign capital and financial services for the domestic economy.
The FSDC considered the domestic and global macro-financial situation and emphasised the need for constant vigilance and proactive efforts towards detecting emerging financial stability risks. The members also decided to strengthen inter-regulatory coordination to further develop the financial sector to provide the requisite financial resources for inclusive economic growth.
The meeting was attended by Minister of State for Finance Bhagwat Kishanrao Karad, Shaktikanta Das, Governor, Reserve Bank of India, and senior finance ministry officials. The members also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor, RBI, and the action taken by members on the previous decisions of the FSDC.
The government’s focus on addressing macro financial stability and the readiness to deal with emerging financial stability risks was evident in the FSDC meeting chaired by Finance Minister Nirmala Sitharaman. The discussion on simplifying and digitalising the KYC process, curbing unauthorised lending through online apps, and strengthening inter-regulatory coordination highlights the government’s commitment to maintaining the resilience of the financial sector. The outcomes of the meeting reflect the government’s proactive approach towards ensuring a stable and inclusive financial sector for India’s economic growth.
