The government is contemplating setting up a Crisis Management Group (CMG) headed by Reserve Bank Deputy Governor to deal with the impact of global financial turmoil.
The issue is likely to be discussed at a meeting to develop a crisis management framework for the Finance Ministry here on Monday.
RBI has suggested the "need for a closely knit nimble footed CMG with representations from the regulatory bodies, namely, RBI, SEBI (Securities and Exchange Board of India), IRDA (Insurance Regulatory and Development Authority), PFRDA (Pension Fund Regulatory and Development Authority) and the Government of India, Ministry of Finance".
The Deputy Governor of RBI nominated for the purpose by the Governor may act as chairman of the Group.
The chairpersons of the other regulatory bodies shall nominate members on behalf of their respective organisations at the senior level so as to facilitate quick decision making, according to a note prepared by the apex bank.
"We want to set up an early warning mechanism in the event of a crisis. We are working on it," a senior Finance Ministry official told PTI.
The meeting will be chaired by Department of Economic Affairs Secretary R Gopalan, and is likely to be attended by Chief Economic Advisor Kaushik Basu and other senior Finance Ministry officials.
It will be left to the judgement of the Group to determine what constitutes a crisis situation requiring the crisis management framework to be activated, the note said.
Moreover, the internal crisis management set up within the RBI shall maintain a contingency contact list of key personnel at sufficiently senior level.
This will range from systemically important market participants, stock exchanges, market infrastructure institutions like Clearing Corporation of India Ltd (CCIL), etc., which will be regularly updated.
This group of key personnel will act as Contingency Contact Group (CCG) which will facilitate quick sharing of information, market intelligence and speedy action on operational aspects as per the decisions taken by the CMG to effectively deal with the crisis situations.