The idea to create FSDC was first mooted by the Raghuram Rajan Committee on Financial Sector Reforms in 2008.
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Financial Stability and Development Council (FSDC)
- FSDC is an apex-level Council set up by Indian Government in 2010 by the announcement made in the Union Budget 2010–11.
- It is a non-statutory body.
- The objective of the council is to strengthen and institutionalize the mechanism for maintaining financial stability and enhancing inter-regulatory coordination.
- Formerly the purpose was served from the High Level Coordination Committee on Financial Markets (HLCCFM); which is replaced by FSDC in 2010.
- The Chairman of the FSDC is the Finance Minister of India.
- Members include:
- Heads of the financial sector regulatory authorities (i.e, SEBI, IRDA, RBI, PFRDA and FMC)
- Finance Secretary and/or Secretary, Department of Economic Affairs (Ministry of Finance)
- Secretary, (Department of Financial Services, Ministry of Finance)
- The Chief Economic Adviser
- A sub-committee of FSDC has also been set up under the chairmanship of Governor RBI.
- Maintenance of Financial Stability
- Financial Sector Development
- Inter-regulatory coordination along with monitoring macro-prudential regulation of economy.
- It acts as an apex level forum to strengthen and institutionalize the mechanism for maintaining financial stability.
- It also enhances inter-regulatory coordination and promoting financial sector development in the country.
- It focuses on financial literacy and financial inclusion.
- It monitors macro-prudential supervision of the economy.
- It assesses the functioning of the large financial conglomerates.