New Delhi (NVI): Finance Minister Nirmala Sitharaman today chaired the 23rd meeting of the Financial Stability and Development Council (FSDC) to review major macroeconomic developments and financial stability issues, both global and domestic, through video conference.
The meeting reviewed these issues with special reference to vulnerability related issues and noted that the policy measures taken by the Central Government and the financial sector regulatory authorities have ensured faster economic recovery in India as reflected in the reduced contraction of GDP in Q2 of 2020-21, according to a statement issued by Ministry of Finance.
The economy has gained momentum and the path to recovery will be faster than what was predicted earlier, the statement read.
“The discussions were held on further measures which may be required to be taken to ensure consistent support of the financial sector for achieving faster real economic growth and achieving the overall macroeconomic targets, while continuing to maintain financial stability,” it added.
The Council also discussed the budget proposals submitted by Reserve Bank of India (RBI) and other Regulators.
It was noted that there is a need to keep a continuous vigil by the Government and all regulators on the financial conditions that could expose financial vulnerabilities in the medium and long-term.
In addition to this, the Council discussed the challenges involved in smooth transition of London Interbank Offer Rate (LIBOR) based contracts and noted that a multipronged strategy involving relevant stakeholder institutions and departments is required in this regard.
The Council also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor of RBI and the action taken by members on FSDC decisions earlier.
The meeting was also virtually attended by Anurag Singh Thakur, Union Minister of State for Finance and Corporate Affairs; Ajay Bhushan Pandey, Finance Secretary and several other senior officers of the Government of India and Financial Sector Regulators.
-CHK
