26 Feb 2022 Financial Stability and Development Council
Financial Stability and Development Council – Today Current Affairs
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If our markets remain volatile, i.e. financial stability, then investors will not want to take risk and thus economic activity will start decreasing.
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It will not be considered good for any economy. Also, how to develop our financial sector; how should there be coordination between the big agencies related to finance; How to make people financially literate and involve them in the organized financial system.
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These are all such issues on which development is not possible without taking care of them. To address such issues, an organization has been formed named – Financial Stability and Development Council (FSDC). Today Current Affairs.
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In fact, on February 22, the 25th meeting of the Financial Stability and Development Council was held in Mumbai under the chairmanship of Union Finance Minister Smt. Nirmala Sitharaman.
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After the budget, the Finance Minister Smt. Sitharaman was on a two-day visit to the city of Mumbai, where she held meetings with industry representatives, financial market functionaries and bankers on a wide range of issues.
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In the meeting, FSDC deliberated on its various mandates and various macro-financial challenges arising in view of global and domestic developments.
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In a macro-level meeting, the Council observed that there is a need for the Government and all regulators to continuously monitor the financial conditions and functioning of important financial institutions.
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The Council discussed operational issues related to currency management. It also took note of the activities done by the FSDC Sub-Committee chaired by the RBI Governor and the action taken by the members on the past decisions of the FSDC.
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The Financial Stability and Development Council was constituted on 30 December 2010 on the basis of the recommendations of the Raghuram Rajan Committee. It is headed by the Finance Minister. The Hindu Analysis.
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Its members include the Governor of the Reserve Bank of India, the Finance Secretary, the Secretary, Department of Economic Affairs, the Secretary, Department of Financial Services, the Chief Economic Adviser to the Ministry of Finance, the Chairman of SEBI, the Chairman of IRDA and PFRDA.
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The function of FSDC is to provide judicious supervision of small issues related to the economy including financial stability, development of the financial sector, inter-regulatory coordination, financial literacy, and financial inclusion and functioning of large financial companies. It is to be noted that no separate fund is allocated to this council for its activities.
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