Financial Stability and Development Council (FSDC)

The high-level FSDC headed by Finance Minister Nirmala Sitharaman discussed a host of issues concerning the economy and underlined the need for keeping a continuous vigil on the financial sector by the government as well as different regulators.

Financial Stability and Development Council (FSDC) is a not-statutory apex-level body constituted in 2010 by the government of India.

The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008.

The new body envisages to strengthen and institutionalise the mechanism of maintaining financial stability, financial sector development, inter-regulatory coordination along with monitoring macro-prudential regulation' of economy.

No funds are separately allocated to the council for undertaking its activities.

The Chairman of the Council is the Union Finance Minister and its members include - the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC), Finance Secretary and/or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services, and Chief Economic Adviser.

The Council can invite experts to its meeting if required.

Responsibilities: Financial Stability, Financial Sector Development, Inter-Regulatory Coordination, Financial Literacy, Financial Inclusion, Macro prudential supervision of the economy including the functioning of large financial conglomerates.

Coordinating India's international interface with financial sector bodies like the Financial Action Task Force (FATF), Financial Stability Board (FSB) etc.