The Financial Stability and Development Council (FSDC) meeting, chaired by Finance Minister Nirmala Sitaraman, on Tuesday discussed further measures that may be needed to ensure consistent support to the financial sector for achieving faster real economic growth and overall macroeconomic targets, while continuing to maintain financial stability.
The Council also discussed through video conference the budget proposals submitted by the RBI and other regulators.
The meeting reviewed the major macroeconomic developments and financial stability issues (global and domestic) and noted that the policy measures taken by the Centre and the financial sector regulatory authorities have ensured faster economic recovery as reflected in the reduced contraction of GDP in Q2 of 2020-21.
The economy has gained momentum and the path to recovery will be faster than what was predicted earlier, the FSDC meeting noted. It was also decided that there is a need to keep a vigil by the government and all regulators on the financial conditions that could expose financial vulnerabilities in the medium- and long-term. The Council discussed the challenges involved in smooth transition of London Interbank Offer Rate (LIBOR) based contracts and noted that a multi-pronged strategy involving relevant stakeholder institutions and departments is required in this regard, an official release said.
Among those who attended the meeting are: Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs; Ajay Bhushan Pandey, Finance Secretary; Ajay Prakash Sawhney, Secretary, Ministry of Electronics and Information Technology; Debasish Panda, Secretary, Department of Financial Services; Tuhin Kanta Pandey, Secretary (In charge), Ministry of Corporate Affairs; Tarun Bajaj, Secretary, Department of Economic Affairs; and Shaktikanta Das, Governor, Reserve Bank of India.