FSDC Full Form

What is the full form of FSDC?

FSDC stands for Financial Stability and Development Council. The Indian government formed the Financial Stability and Development Council (FSDC), a high-level institution. The idea of creating such a super-regulatory organisation was first put forth by the Raghuram Rajan Committee in 2008. Finally, in 2010, India's then-finance minister, Pranab Mukherjee, agreed to establish an independent organisation to handle macroprudential and financial regularities throughout the whole Indian financial sector. Apex-level FSDCs are not statutory organizations.

This Story also Contains

1. What is the full form of FSDC?
2. FSDC Functions
3. Responsibilities of FSDC
4. Financial Stability

The recent global economic crisis has put pressure on governments and institutions all over the world to manage their economic assets. This council is considered India's effort to improve its readiness to stop similar occurrences in the future. The new organization plans to institutionalize and reinforce the mechanisms for maintaining financial stability, the growth of the financial sector, inter-regulatory coordination, and monitoring macro-prudential control of the economy. The council receives no special funding for carrying out its activities. Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs presided over the Financial Stability and Development Council's 26th meeting on September 15, 2022. (FSDC).

FSDC Functions

In order to address macroprudential and financial regularities across India's entire financial system, the Financial Stability and Development Council was founded.

• The organisation works to strengthen and institutionalise the systems that support financial stability, the expansion of the financial industry, inter-regulatory cooperation, and macro-prudential economic regulation oversight.

• It should be made clear that the council receives no outside money for performing its duties.

Responsibilities of FSDC

The following contains some of the responsibilities of the FSDC:

• Establishing financial sector stability.

• Financial Sector Development.

• Inter-Regulatory body coordination.

• Financial literacy promotion.

• Financial inclusion is ensured.

• Macroprudential control over the economy, mainly how well the biggest financial giants operate.

• They are coordinating India's worldwide participation with financial organizations such as the Financial Action Task Force (FATF), the Financial Stability Board (FSB), and other organizations that the Finance Minister may periodically decide to include.

Financial Stability

Financial stability refers to the ability of financial institutions, both individually and collectively, to carry out their duties effectively, endure external shocks, and avoid developing internal flaws. The Reserve Bank of India's "India Financial Stability Report," published in March 2010, defines financial stability as "a state in which the financial sector consistently delivers important services to the real economy."