RBI Governor-headed FSDC sub-committee reviews economic situation

The FSDC sub-committee reviewed the economic situation in the backdrop of the COVID pandemic and resolved to keep a close watch on the unfolding developments with a view to ensure financial stability

The FSDC sub-committee headed by Reserve Bank Governor Shaktikanta Das on Thursday reviewed the economic situation in the backdrop of the COVID-19 pandemic and resolved to keep a close watch on the unfolding developments with a view to ensure financial stability.

The meeting of the Financial Stability and Development Council (FSDC) Sub-Committee (FSDC-SC) was held via video conferencing and attended by all financial sector regulators including SEBI, IRDAI, PFRDA and IBBI.

"The members resolved to maintain a close watch on the unfolding developments and act proactively to ensure that financial institutions and financial markets remain resilient amidst the challenges posed by the resurgence of the pandemic," the RBI said in a release.

The sub-committee reviewed the major developments in the global and domestic economy as well as in various segments of the financial system and discussed the assessments of members about the scenario emerging from the third wave of the pandemic.

Among others, it discussed various inter-regulatory issues and matters relating to the use of Aadhaar-based e-KYC and Aadhaar Enabled Payment System by regulated entities.

It also reviewed the activities of various technical groups under its purview and the functioning of State Level Coordination Committees (SLCCs) in various states and Union Territories.

The meeting was attended T V Somanathan, Finance Secretary and Secretary, Department of Expenditure; Ajay Seth, Secretary, Department of Economic Affairs; Tarun Bajaj, Secretary, Department of Revenue; Rajesh Verma, Secretary, Ministry of Corporate Affairs; Ajay Prakash Sawhney, Secretary, Ministry of Electronics and Information Technology; and Shashank Saksena, Secretary, Financial Stability and Development Council.

Other members of the Sub-Committee, including Ajay Tyagi, Chairman, Securities and Exchange Board of India (SEBI) and Supratim Bandyopadhyay, Chairman, Pension Fund Regulatory and Development Authority (PFRDA), also attended the meeting.

Besides, RBI deputy governors Michael Debabrata Patra and T Rabi Sankar; and executive directors O P Mall, J K Dash and Rohit Jain participated in the meeting.

Vandita Kaul, Additional Secretary represented the Department of Financial Services; T Alamelu, Whole Time Member, Insurance Regulatory and Development Authority of India (IRDAI) and Navrang Saini, Chairman (Additional Charge), Insolvency and Bankruptcy Board of India (IBBI) attended the meeting on behalf of their respective institutions.