19thMeeting of the Financial Stability and Development Council (FSDC) held under the Chairmanship of the Union Finance Minister

Newdelhi:30/10/18:The Nineteenth Meeting of the Financial Stability and Development Council (FSDC) under the Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri ArunJaitleyreviewedthe current global and domestic economic situation and financial sector performance. The Council discussed at length the issue of real interest rate, current liquidity situation, including segmental liquidity position in NBFCs and mutual fund space. The Council decided that the Regulators and the Government would keep a close watch on the developing situation and take all necessary measures.

The FSDC Meeting was held here today under the Chairmanship of the Union Minister of Finance, Shri ArunJaitley which was attended by Dr. Urjit R. Patel, Governor, Reserve Bank of India (RBI); Dr. Hasmukh Adhia, Finance Secretary and Secretary, Department of Revenue; Shri Subhash Chandra Garg, Secretary, Department of Economic Affairs;Shri Rajiv Kumar, Secretary, Department of Financial Services;Shri Injeti Srinivas, Secretary, Ministry of Corporate Affairs; Shri Ajay Prakash Sawhney Secretary, Ministry of Electronics and Information Technology;Shri Ajay Tyagi, Chairman, Securities and Exchange Board of India;Shri Subhash Chandra Khuntia, Chairman, Insurance Regulatory and Development Authority of India; Shri Hemant G. Contractor, Chairman, Pension Fund  Regulatory and Development Authority;Dr. M. S. Sahoo, Chairperson, Insolvency and Bankruptcy Board of India and other senior officers of the Government of India and Financial Sector Regulators.

FSDC took note of the developments regardingstrengthening of Cyber Security in Financial Sector including progress made towards setting up of a Computer Emergency Response Team in the Financial Sector (CERT-Fin) under a Statutory Framework. The Council also deliberated on the need for identifying and securing critical information infrastructure in financial sector.

The Council also deliberated on the issues and challenges of Crypto Assets/Currency and was briefed about the deliberations in the High-level Committee chaired by the Secretary (Economic Affairs) to devise an appropriate legal framework to ban use ofprivate crypto currenciesin India and encouraging the use of Distributed Ledger Technology, as announced in the Budget 2018-19.

Other issues discussed include market developments and financial stability implications of the use of RegTech and SupTech by Financial Firms and Regulatory and Supervisory Authorities, and implementing the Recommendations of the Sumit Bose Committee Report on measures, such as, promoting appropriate disclosure regime for financial distribution costs.

The Council also took note of the activities undertaken by the FSDC Sub-Committee Chaired by Governor, RBI and the action taken by Members on the decisions taken in earlier Meetings of the Council.