New Delhi: The Financial Stability and Development Council (FSDC) comprising market regulators that met under the chairmanship of finance minister Arun Jaitley on Tuesday agreed to be in a state of preparedness for managing any external or internal vulnerability to the Indian economy.
In the 17th meeting of FSDC, chief economic adviser in the finance ministry Arvind Subramanian made a presentation on the state of the economy.
“The Council noted that India has macro-economic stability today on the back of improvements in its macro-economic fundamentals, structural reforms with the launch of the Goods and Services Tax (GST), action being taken to address the Twin Balance Sheet (TBS) challenge, extraordinary financial market confidence, reflected in high and rising bond and especially stock valuations and long-term positive consequences of demonetization. The Council also discussed the issues and challenges facing the Indian economy and Members agreed on the need to keep constant vigil and be in a state of preparedness of managing any external and internal vulnerabilities," the finance ministry said in a statement.
The Council also took note of the progress of Financial Sector Assessment Program for India, jointly conducted by the International Monetary Fund and the World Bank.
“Council directed that the assessment report should be finalized by the end of this calendar year," the statement said.
FSDC took note of the developments and progress made in setting up of Computer Emergency Response Team in the Financial Sector (CERT-Fin) and Financial Data Management Centre and discussed measures for time-bound implementation of the institution building initiative.
A brief report on the activities undertaken by the FSDC sub-committee chaired by Reserve Bank of India (RBI) governor Urjit Patel was placed before the FSDC.
The Council discussed the Central KYC Registry (CKYCR) system, took note of the initiatives taken in this regard by the members and discussed the issues in respect of operationalization of CKYCR. The Council also deliberated on strengthening the regulation of the Credit Rating Agencies (CRAs).
Apart from CEA Subramanian and RBI governor Patel, the meeting was attended by the four secretaries of the finance ministry, secretaries of corporate affairs, electronics and chairmen of insurance, pension and securities market regulators.