Financial Stability and Development Council
The Financial Stability and Development Council (FSDC) is an inter-ministerial body in India that was set up in 2010 to oversee the financial stability of the country. The FSDC is chaired by the Prime Minister and includes the Finance Minister, the Reserve Bank of India Governor, and the heads of other key financial institutions.
The FSDC’s mandate is to identify and address systemic risks to the financial system, and to promote financial stability and development. The FSDC does this through a variety of means, including:
- Monitoring the financial system and identifying potential risks
- Promoting coordination and cooperation among financial regulators
- Developing and implementing policies to mitigate systemic risks
- Raising public awareness of financial stability issues
The FSDC has played a key role in promoting financial stability in India. In the wake of the global financial crisis, the FSDC took a number of steps to strengthen the Indian financial system, including:
- Raising capital requirements for banks
- Strengthening liquidity management
- Improving risk management practices
These steps helped to insulate the Indian financial system from the worst effects of the global crisis.
The FSDC has also played a role in promoting financial development in India. The FSDC has supported initiatives to increase financial inclusion, to develop the capital markets, and to promote financial innovation.
The FSDC is an important body that plays a key role in promoting financial stability and development in India. The FSDC’s work has helped to make the Indian financial system more resilient to shocks and has contributed to the country’s economic growth.
Frequently Asked Questions
What is the Financial Stability and Development Council (FSDC)?
The FSDC is an inter-ministerial body in India that was set up in 2010 to oversee the financial stability of the country. The FSDC is chaired by the Prime Minister and includes the Finance Minister, the Reserve Bank of India Governor, and the heads of other key financial institutions.
What is the FSDC’s mandate?
The FSDC’s mandate is to identify and address systemic risks to the financial system, and to promote financial stability and development. The FSDC does this through a variety of means, including:
- Monitoring the financial system and identifying potential risks
- Promoting coordination and cooperation among financial regulators
- Developing and implementing policies to mitigate systemic risks
- Raising public awareness of financial stability issues
What has the FSDC done to promote financial stability?
The FSDC has played a key role in promoting financial stability in India. In the wake of the global financial crisis, the FSDC took a number of steps to strengthen the Indian financial system, including:
- Raising capital requirements for banks
- Strengthening liquidity management
- Improving risk management practices
These steps helped to insulate the Indian financial system from the worst effects of the global crisis.
What has the FSDC done to promote financial development?
The FSDC has also played a role in promoting financial development in India. The FSDC has supported initiatives to increase financial inclusion, to develop the capital markets, and to promote financial innovation.
What are the benefits of the FSDC?
The FSDC has a number of benefits, including:
- It helps to promote financial stability by identifying and addressing systemic risks.
- It promotes coordination and cooperation among financial regulators.
- It helps to develop and implement policies to mitigate systemic risks.
- It raises public awareness of financial stability issues.
What are the challenges of the FSDC?
The FSDC faces a number of challenges, including:
- It is difficult to identify and address all systemic risks.
- It can be difficult to coordinate and cooperate among financial regulators.
- It can be difficult to develop and implement policies to mitigate systemic risks.
- It can be difficult to raise public awareness of financial stability issues.
What is the future of the FSDC?
The FSDC is likely to continue to play a key role in promoting financial stability and development in India. The FSDC is likely to face a number of challenges in the future, but it is also likely to continue to make a positive contribution to the Indian economy.
MCQs
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The Financial Stability and Development Council (FSDC) is an inter-ministerial body in India that was set up in:
(A) 2008
(B) 2010
(C) 2012
(D) 2014 -
The FSDC’s mandate is to:
(A) Identify and address systemic risks to the financial system
(B) Promote financial stability and development
(C) Both (A) and (B)
(D) None