Decision No 1: Financial Sector Regulators agree on an MoU to monitor Financial Conglomerates;
Decision No 2: Approve National Strategy for Financial Education.
India’s Financial sector regulators (Reserve Bank of India, Securities and Exchange Board of India, Insurance Regulatory and Development Authority and Pension Fund Regulatory and Development Authority) signed a Memorandum of Understanding (MoU) for co-operation in the field of consolidated supervision and monitoring of financial groups identified as financial conglomerates.
The Sub Committee of the Financial Stability and Development Council (FSDC) also approved the National Strategy for Financial Education (NSFE). The NSFE has been revised incorporating the feedback received from public consultations and from a global peer review.
Way back in 1998, ‘Raghuram Rajan Committee’, had suggested to create a super regulatory body.
Over the years, many discussions took place within the Central Government, and in October 2010, the proposal to create Financial Stability & Development Council (FSDC) was taken.
The than Finance Minister Shri Pranab Mukherjee held a meeting with the Regulators and officials of Ministry of Finance on the creation of Financial Stability & Development Council (FSDC).
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.
Composition of the council
Chairperson: The Union Finance Minister of India
- Governor Reserve Bank of India (RBl),
- Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA),
- Secretary, Department of Financial Services (DFS),
- Chief Economic Advisor, Ministry of Finance,
- Chairman, Securities and Exchange Board of India (SEBI),
- Chairman, Insurance Regulatory and Development Authority (IRDA),
- Chairman Pension Fund Regulatory and Development Authority (PFRDA),
- Joint Secretary (Capital Markets), DEA, will be the Secretary of the Council,
- The Chairperson may invite any person whose presence is deemed necessary for any of its meeting(s).
In the near future, hopefully FSDC will have its own website.