Financial Stability and Development Council (FSDC) on Thursday underscored a need to assess financial sector risks and the financial market conditions regularly by the government and the regulators so that any vulnerability can be mitigated and addressed without delay.
This assumes importance in strengthening financial stability amid global economic headwinds which saw inflation across the globe skyrocketing following supply side disturbance as a result of the Ukraine-Russia war.
The 26th FSDC meeting held in Mumbai was chaired by the union finance and corporate affairs minister Nirmala Sitharaman.
“It was noted that there is a need to monitor the financial sector risks, the financial conditions and market developments on a continuous basis by the government and the regulators so that appropriate and timely action can be taken so as to mitigate any vulnerability and strengthen financial stability,” said the ministry of finance in a statement.
The council deliberated on the early warning indicators for the economy and the preparedness to deal with them, improving the efficiency of the existing financial/credit Information systems, issues of governance and management in systemically important financial institutions.
Issues such as cyber security framework in financial sector, and the relevance of common customer identification for all financial services were also discussed. The members highlighted the importance of financing of power sector and need for utilisation of the services of registered valuers by all government departments.
The Council also took note of the preparation in respect of financial sector issues to be taken up during India’s G20 Presidency in 2023.
The meeting was attended by junior finance ministers Bhagwat Kishanrao Karad and Pankaj Chaudhary, Reserve Bank of India Governor Shaktikanta Das and a host of finance ministry officials.
Source: Economic Times