New Delhi: The 27th meeting of the Financial Stability and Development Council (FSDC) was conducted by Finance Minister Nirmala Sitharaman and joined by RBI Governor Shaktikanta Das along with many other regulatory bodies’ heads.

During the meeting, Ajay Seth, Secretary of the Department of Economic Affairs, said the global financial situation is “daunting” but the Indian financial sector is well protected and well regulated. However, he warned India to be cautious and be aware of early warning indicators that show signs of financial sector stress.

This meeting of FSDC happened for the first time after Budget 2023-24 was presented on February 1. It is also the first time that the council has addressed banking-related issues erupted in the US and Europe.

Policies relating to the financial sector’s betterment were discussed. With this, the council also took into account that the legislative reforms needed to further expand the financial sector may be formulated and implemented fast to not only provide financial access to the people but as well as to increase their overall economic well-being.

Sitharaman also talked to the regulators about adopting a focused approach to minimise the compliance burden further and make sure of a secure, smooth and efficient regulatory environment.

Advised the regulators more on being proactive and checking the cyber-security preparedness of the information technology systems to lessen the risk of cyber-attacks, protect sensitive financial data, and maintain overall system integrity.

Discussions

Measures taken report on budget announcements that were made since 2019 were considered during the meeting, Sithraman said.

The council also talked about the approach that is needed to implement the announcements made in the Union Budget 2023-24, along with their timelines.

Centring on issues like early warning indicators for the economy and the country’s preparedness to deal with them, minimising compliance burden on the regulated entities in the financial sector by enhancing regulatory quality, debt levels of firms and households in India, simplification and time-saving KYC framework to meet the needs of Digital India, unique experience for retail investors in government securities, Bimakrit Bharat Unique Value proposition to take insurance to the last mile, and provide a helping hand to resolve inter-regulatory issues for GIFT IFSc to play a significant role in Atmanirbhar Bharat, Finance Minister said in a statement.