India needs to ensure fin stability, inclusion balance: FSB

Says steps have been taken in recent years to develop the country's macroprudential policy framework

India needs to do additional work for having a comprehensive macroprudential policy framework with "clearer boundaries" for various authorities including the Reserve Bank of India (RBI), while ensuring a balance between financial stability and inclusion, global body Financial Stability Board (FSB) said on Wednesday.

While observing that "important steps" have been taken in recent years to develop the country's macroprudential policy framework, FSB said the authorities also need to consider potential policy trade-offs in the future.

According to FSB additional work is needed to flesh out and operationalise a comprehensive macroprudential policy framework.

"Much of this work relates to making macroprudential policy-setting more explicit, with clearer boundaries between authorities and with other policies, as well as in balancing the objectives of promoting financial development and inclusion," its peer review report of India said.

FSB works towards promoting effective regulatory, supervisory and other financial sector policies in the interest of financial stability.