Government to set up Financial Stability and Development Council (FSDC)
The Central Government is at consensus to establish Financial Stability & Development Council (FSDC) to strengthen and institutionalize the mechanism for maintaining financial Stability and Development.
What would be the role of FSDC?
FSDC will perform following role:
- To engage in macro prudential supervision of the economy, including the functioning of large financial conglomerates and address inter-regulatory coordination issues.
- To focus on financial literacy and financial inclusion.
- To periodically look into issue relating to financial development.
Who would be the head of the Council?
The Council would have one Sub-Committee which would be headed by Governor, RBI. The Secretariat of the Council would be in the Department of Economic Affairs, Ministry of Finance.