SME Times News Bureau | 29 May, 2020
Union Minister for Finance Nirmala Sitharaman
chaired the 22nd Meeting of the Financial Stability and Development
Council (FSDC) and reviewed prevailing microeconomic situation in the country in
New Delhi Thursday.
The meeting was attended by Shaktikanta
Das, Governor, Reserve Bank of India, SEBI Chairperson Ajay Tyagi, IRDAI
Chairman Subhash Chandra Khuntia, PFRDA Chairperson Supratim Bandyopadhyay, and
the Chairperson of the Insolvency and Bankruptcy Board of India M.S. Sahoo
Chairperson, (IBBI) among other officials and secretaries of the Finance
The meeting reviewed the current global and
domestic macro-economic situation, financial stability and vulnerabilities
issues, major issues likely to be faced by banks and other financial
institutions as also regulatory and policy responses, Liquidity / Solvency of
NBFCs/HFCs/MFIs and other related issues. Besides, market volatility, domestic
resource mobilisation and capital flows issues were also discussed by the
The Council noted that the COVID-19 Pandemic crisis
poses a serious threat to the stability of the global financial system as the
ultimate impact of the crisis and the timing of recovery, is uncertain at this
point of time.
While, decisive monetary and fiscal policy actions
aimed at containing the fallout from the pandemic, have stabilised investor
sentiment in the short-run, there is a need to keep a continuous vigil by
Government and all regulators on the financial conditions that could expose
financial vulnerabilities in the medium and long-term.
The efforts of the Government and regulators are
focused on avoiding a prolonged period of dislocation in financial markets.
The Council took note of the initiatives taken by
the Government and the regulators in the recent months to help revive the
Government and the RBI have announced various
fiscal and monetary measures to pre-emptively limit the economic damage and
would continue to address the liquidity and capital requirements of the financial
The Council also reviewed the action taken by
members on the decision taken by FSDC earlier.