Updated February 21st, 2024 at 18:33 IST

Finance Minister heads 28th FSDC meeting, addresses financial stability

During the meeting, the FSDC highlighted the imperative of maintaining constant vigilance and taking proactive measures to identify emerging financial stability

Reported by: Business Desk
Finance Minister Nirmala Sitharaman | Image:PTI/ File Photo
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Sitharaman heads FSDC meeting: Finance Minister Nirmala Sitharaman chaired the 28th meeting of the Financial Stability and Development Council (FSDC) in New Delhi on Wednesday. The council, comprising key stakeholders in the financial sector, placed a strong emphasis on enhancing inter-regulatory coordination to bolster inclusive economic growth, the government release stated on Wednesday. 

During the meeting, the FSDC highlighted the imperative of maintaining constant vigilance and taking proactive measures to identify emerging financial stability risks, considering both domestic and global macro-financial dynamics. 

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A strategic agenda was set to streamline and digitize the Know Your Customer (KYC) process across the financial sector, ensuring uniform norms and the seamless use of KYC records.

Facilitating Fundraising

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Additionally, the council discussed initiatives to facilitate fundraising by social enterprises through the establishment of social stock exchanges, aiming to channel financial support toward impactful ventures. Measures to counter the negative impact of unauthorized lending through online applications were also deliberated upon, with a concerted effort to curb their proliferation.

The meeting addressed global and domestic macro-financial conditions, urging members to stay vigilant and proactive. Strengthening inter-regulatory coordination was highlighted as a crucial step to foster the continued development of the financial sector, ensuring its role in providing essential financial resources for inclusive economic growth.

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The FSDC Sub-Committee led by the Governor of the Reserve Bank of India and the council took note of actions taken on previous decisions. The meeting saw the participation of key figures, including the Governor of RBI, the Finance Secretary, the Secretary of the Department of Economic Affairs, and other high-ranking officials from diverse financial institutions.

This strategic session highlights the government's commitment to navigating financial challenges, promoting regulatory harmony, and advancing the nation's economic resilience in a dynamic global world order. 

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Published February 21st, 2024 at 18:31 IST