Fiscal Responsibility and Development Council

WHY IN NEWS?

Union Finance Minister chaired the 22nd Meeting of the Financial Stability and Development Council (FSDC) to review the current global and domestic macro-economic situation, financial stability and vulnerabilities.

ABOUT FISCAL RESPONSIBILITY AND DEVELOPMENT COUNCIL

• Financial Stability and Development Council (FSDC) is the apex body which deals with macroprudential and financial regularities in the entire financial sector of India.
• The Council is chaired by the Union Finance Minister and its members are Governor, Reserve Bank of India; Finance Secretary, Department of Economic Affairs; Secretary, Department of Financial Services; Chief Economic Adviser, Ministry of Finance; Chairman, Securities and Exchange Board of India; Chairman, Insurance Regulatory and Development Authority; Chairman, Pension Fund Regulatory and Development Authority. It also includes the chairman of the Insolvency and Bankruptcy Board (IBBI) and Secretary, Ministry of electronics and information technology (MeitY)
• FSDC was set up in 2010 as per the recommendations of the Raghuram Rajan Committee as part of the efforts to be better conditioned to prevent instances such as the global economic meltdown of 2008 in future.
• FSDC envisions to strengthen and institutionalise the mechanism of:
  • Maintaining financial stability
  • Financial sector development
  • Inter-regulatory coordination
  • Monitoring macro-prudential regulation of the economy.