The Union Government has proposed setting up Financial Data Management Centre (FDMC) based on recommendation of a committee set up under the Department of Economic Affairs (DEC).
The Committee was headed by Ajay Tyagi, Additional Secretary in Union Finance Ministry and has submitted its report and a draft bill titled The Financial Data Management Centre Bill, 2016.
Functions of FDMC
- Standardise data from all financial sector regulators in a single database and provide analytical insights based on the data to ensure stability in the economy.
- Take measures to standardise data from regulators, enable financial service providers to submit data in a standardised electronic format, analyse data and maintain a financial system database.
- Establish, operate and maintain the financial system database along with collecting financial regulatory data and providing access to it.
- Provide analytical support to the Financial Stability and Development Council (FSDC) on issues relating to financial stability.
In 2015, FSDC first had suggested the creation of such a body, after Reserve Bank of India (RBI) had objected to share company-specific data with FSDC. RBI had given reason that FSDC is not a statutory bod in nature, and sharing such data would be a breach of confidentiality. To resolve this issue, Union Finance Minister Arun Jaitley in his 2016-17 Budget Speech announced setting up of statutory FDMC under the aegis of the FSDC to facilitate integrated data aggregation and analysis in the financial sector.