GS Paper - 3 (Economy)

The FSDC sub-committee headed by Reserve Bank Governor Shaktikanta Das on 13 January 2022 reviewed the economic situation in the backdrop of the COVID-19 pandemic and resolved to keep a close watch on the unfolding developments with a view to ensure financial stability.

What

  1. The meeting of the Financial Stability and Development Council (FSDC) Sub-Committee (FSDC-SC) was held via video conferencing and attended by all financial sector regulators including SEBI, IRDAI, PFRDA and IBBI.
  2. The members resolved to maintain a close watch on the unfolding developments and act proactively to ensure that financial institutions and financial markets remain resilient amidst the challenges posed by the resurgence of the pandemic.
  3. The sub-committee reviewed the major developments in the global and domestic economy as well as in various segments of the financial system and discussed the assessments of members about the scenario emerging from the third wave of the pandemic.
  4. Among others, it discussed various inter-regulatory issues and matters relating to the use of Aadhaar-based e-KYC and Aadhaar Enabled Payment System by regulated entities.
  5. It also reviewed the activities of various technical groups under its purview and the functioning of State Level Coordination Committees (SLCCs) in various states and Union Territories.

Flashback

  1. The Financial Stability and Development Council (FSDC) has been constituted vide GOI notification dated 30th December, 2010.
  2. The Council deals, inter-alia, with issues relating to financial stability, financial sector development, inter–regulatory coordination, financial literacy, financial inclusion and macro prudential supervision of the economy including the functioning of large financial conglomerates.
  3. No funds are separately allocated to the Council for undertaking its activities.
  4. The Council and its Sub-Committee (chaired by Governor, Reserve Bank of India) deliberate on agenda items proposed by any of the members of the Council.