FSDC stresses on continuous monitoring of financial sector risks
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The high-level Financial Stability and Development Council (FSDC), led by Finance Minister Nirmala Sitharaman, emphasised on Thursday the importance of ongoing risk monitoring in the financial sector in order to take prompt action to reduce any vulnerabilities against the backdrop of global uncertainties.
The FSDC conference, which was attended by regulators and representatives from the financial sector, also noted the preparation for the financial sector concerns that will be discussed during India’s G20 Presidency in 2023.
According to the finance ministry, “it was noted that there is a need for the government and regulators to continuously monitor the financial sector risks, the financial conditions, and market developments so that appropriate and timely action can be taken to mitigate any vulnerabilities and strengthen financial stability.”
The council also discussed how to improve the effectiveness of the current financial and credit information systems; challenges of governance and management in systemically significant financial institutions; and early warning indicators for the economy and how prepared we are to cope with them.
Strengthening the financial sector’s cyber security framework, a universal KYC for all financial services, and other related topics were discussed at the meeting.
The council also discussed an update on account aggregator and further steps, concerns about financing the power sector, the strategic significance of GIFT IFSC in Aatmanirbhar Bharat, GIFT-IFSC inter-regulatory difficulties, and the necessity of all government departments using registered valuers’ services.
At the 26th FSDC meeting, Ministers of State for Finance Bhagwat Kishanrao Karad and Pankaj Chaudhary, as well as RBI Governor Shaktikanta Das, were present at the 26th FSDC meeting.
To counteract inflationary pressures brought on by supply interruptions brought on by the ongoing Russia-Ukraine conflict, central banks around the world are boosting interest rates.
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