FSDC-SC resolves to remain vigilant against external vulnerabilities

RBI Governor Shaktikanta Das-headed Sub-Committee of the Financial Stability and Development Council (FSDC-SC) on Monday resolved to remain vigilant against any build-up in vulnerabilities in the financial system as well as in the broader economy amid uncertain global environment.

With a view to strengthening and institutionalising the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the FSDC was set up by the government as the apex level forum in December 2010.

The FSDC Sub-Committee has been set up under the chairmanship of governor, RBI. It meets more often than the full Council.

The Sub-Committee reviewed major global and domestic macroeconomic and financial developments, issues of inter-regulatory coordination relating to the Indian financial sector activities of various technical groups under its purview, the Reserve Bank said in a statement on 30th Meeting of the FSDC Sub-Committee.

It also reviewed the functioning of State Level Coordination Committees (SLCCs) in various states/UTs.

"The FSDC-SC resolved to remain vigilant against any build-up in vulnerabilities in all segments of the Indian financial system as well as in the broader economy, especially from global spillovers in a dynamic and uncertain world, and to preserve financial system stability for attaining strong, sustainable and inclusive growth," the RBI said.

The meeting was attended by the members of the Sub-Committee -- T V Somanathan, Finance Secretary and Secretary, Department of Expenditure; Vivek Joshi, Secretary, Department of Financial Services; Sanjay Malhotra, Secretary, Department of Revenue; and Manoj Govil, Secretary, Ministry of Corporate Affairs.

Madhabi Puri Buch, Chairperson, Securities and Exchange Board of India (SEBI); Debasish Panda, Chairman, Insurance Regulatory and Development Authority of India (IRDAI); Deepak Mohanty, Chairman, Pension Fund Regulatory and Development Authority (PFRDA); K Rajaraman, Chairman, International Financial Services Centres Authority (IFSCA), and Ravi Mittal, Chairman, Insolvency and Bankruptcy Board of India (IBBI) also attended the meeting.

Besides, RBI deputy governors -- Michael Debabrata Patra, M Rajeshwar Rao, T Rabi Shankar, Swaminathan J, and Reserve Band Executive Director O P Mall, too were present at the FSDC-SC meeting.