The Union Government has reconstituted Financial Stability and Development Council (FSDC) to include secretaries from revenue department as well as Ministry of Information Technology (MeitY). It will include Chairman of the Insolvency and Bankruptcy Board of India (IBBI). This decision will make FSDC more broad-based to incorporate changes in economic regulatory framework of the country.
Inclusion of MeitY Secretary in FSDC becomes significant given massive digitisation push in country and rising apprehensions around safety of personal data as both public and private sectors are collecting and using personal data on an unprecedented scale and for multiple purposes. Moreover, inclusion of revenue secretary in follows increasing safeguards being put in place by Department of Revenue to check tax evasion (both direct and indirect taxes).
Financial Stability and Development Council (FSDC)
FSDC is super regulatory body for regulating financial sector which is vital for bringing healthy and efficient financial system in economy of the country. Its mandate is to strengthen and institutionalise mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation of economy. Union Finance Minister is chairman of FSDC. Its members are heads of financial sector regulatory authorities (i.e, RBI, SEBI, IRDA, PFRDA), Finance Secretary and Secretary, Department of Economic Affair; Secretary, Department of Financial Services, and Chief Economic Adviser. FSDC was set up in 2010 by then Finance Minister Pranab Mukherjee to strengthen and institutionalise mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.