FSDC underlines need to monitor financial sector risks, discusses early warning signals for economy

New Delhi, Sep 15

The Financial Stability and Development Council (FSDC) on Thursday noted that there is a need to monitor financial sector risks, fiscal conditions, and market developments on a continuous basis by the government and the regulators, so that appropriate action can be taken to mitigate any vulnerability and strengthen financial stability.

The FSDC meeting in Mumbai, chaired by Finance Minister Nirmala Sitharaman, also discussed early warning indicators for the economy and the government's preparedness to deal with them, official sources said.

Strengthening of the cyber security framework in financial sector as well as enabling common know your customer (KYC) for all financial services and related matters, were also some of the key issues which were discussed in the meeting.

The strategic role of GIFT IFSC (Gujarat International Finance Tec City - International Financial Services Centre) in Aatmanirbhar Bharat, inter-regulatory issues related to it, and the need for utilisation of the services of registered valuers by all government departments, were also discussed during the meeting.

GIFT IFSC aspires to become India's gateway for inbound and outbound requirements of the international financial services. The government operationalised IFSC at GIFT Multi Services SEZ in April 2015.

The Union Budget for 2016 provided competitive tax regime for the IFSC at GIFT SEZ. It is built to evolve as a hub for international financial services activities.

Meanwhile, the Council also took note of the preparation in respect of financial sector issues to be taken up during India's G20 Presidency in 2023.

The meeting was attended by Ministers of State for Finance Bhagwat Karad and Pankaj Chaudhary, RBI Governor Shaktikanta Das, Finance Secretary and Secretary in the Department of Expenditure T.V. Somanathan, Secretary in the Department of Economic Affairs Ajay Seth, Revenue Secretary Tarun Bajaj, and Financial Services Secretary Sanjay Malhotra.

Chief Economic Adviser V. Anantha Nageswaran, Security and Exchange Board of India Chairperson Madhabi Puri Buch, Insurance Regulatory and Development Authority of India Chairperson Debasish Panda, Pension Fund Regulatory and Development Authority Chairperson Supratim Bandyopadhyay and Insolvency and Bankruptcy Board of India Chairperson Ravi Mittal as well as International Financial Services Centres Authority Chairperson and FSDC Secretary Injeti Srinivas were also present in the meeting.