Context: Union Minister for Finance chaired the 28th Meeting of the Financial Stability and Development Council (FSDC). FSDC deliberated on issues like curbing unauthorised lending apps' operations, strengthening inter-regulatory coordination, simplifying, and digitalising KYC process and adopt uniform KYC norms.
What is Financial Stability and Development Council?
- Set up by the Union Government in 2010 as a non-statutory body, based on earlier recommendation of Raghuram Rajan committee.
- Chairperson- Union Finance Minister
- Members- heads of financial sector regulators (RBI, SEBI, PFRDA, IRDA, IBBI, IFSCA), secretary of Department of Economic Affairs, Secretary of Department of Financial Services, chief economic adviser.
- It also has a sub-committee called sub-committee of FSDC which is chaired by the Governor of RBI.
- FSDC comes under the Department of Economic Affairs, Ministry of Finance.
Objectives of FSDC:
- Strengthening and institutionalizing the mechanism for maintaining financial stability.
- Enhancing inter-regulatory coordination.
- Promoting financial sector development.
- Also focuses on financial literacy and financial inclusion.