BANKING AFFAIRS

Detailed explanation-1: -With a view to strengthening and institutionalizing the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development, the Financial Stability and Development Council (FSDC) was set up by the Government as the apex level forum in December 2010.

Detailed explanation-2: -FSDC was set up to replace the High-Level Coordination Committee on Financial Markets ((HLCCFM) i.e High-Level Committee on Capital Markets. High-Level Coordination Committee on Financial Markets (HLCCFM): It is a high-level forum for interface among the financial sector regulators. It was established in the year 1995.

Detailed explanation-3: -It is chaired by the Finance Minister and its members include the heads of all Financial Sector Regulators (RBI, SEBI, PFRDA & IRDA), Finance Secretary, Secretary of Department of Economic Affairs (DEA), Secretary of Department of Financial Services (DFS), and Chief Economic Adviser.

Detailed explanation-4: -The Financial Stability and Development Council (FSDC) is an autonomous agency established by the Government of India. The Raghuram Rajan Committee proposed the formation of such a super regulatory organisation in 2008.

Detailed explanation-5: -The 25th meeting of the Financial Stability and Development Council (FSDC) was held in Mumbai on 22 February 2022, under the Chairpersonship of Union Finance Minister Smt. Nirmala Sitharaman.