New council not to usurp RBI's role: Subbarao

The Reserve Bank of India’s (RBI) independence and monetary policy role would not be impacted by the creation of the Financial Stability Development Council (FSDC), Governor D Subbarao said.

“There will be no change in RBI’s role. We will also be a member of the FSDC...The independence of our monetary policy role will not be impacted by the council,” he said. On February 26, Finance Minister Pranab Mukherjee had announced the creation of FSDC in a bid to boost greater coordination among regulators.

Subbarao said the council would go a long way in bringing better synergies among regulators across sectors, which would help in better implementation of policies.