Nirmala Sitharaman Asks Regulators To Maintain Vigil On Financial Sectors Amid Global Tensions

In the backdrop of the mounting Russia-Ukraine conflict, finance minister Nirmala Sitharaman on Tuesday asked regulators to maintain constant vigil on the financial sector.

She expressed these views during the meeting of the financial stability and development council (FSDC), which was attended by various financial sector regulators and also the Reserve Bank of India (RBI) governor Shaktikanta Das.

The council also discussed measures required for further development of the financial sector and to achieve an inclusive economic growth with macroeconomic stability.

"The council deliberated on the various mandates of the FSDC and major macro-financial challenges arising in view of global and domestic developments. It noted that the government and all regulators need to maintain constant vigil on the financial conditions and functioning of important financial institutions, especially considering that it could expose financial vulnerabilities in the medium and long-term," the finance ministry said in a statement.

The council discussed measures required for further development of the financial sector and to achieve an inclusive economic growth with macroeconomic stability, official sources said.

The meeting was also attended by junior finance minister Bhagwat Karad, finance secretary T V Somanathan, economic affairs secretary Ajay Seth, revenue secretary Tarun Bajaj, financial services secretary Sanjay Malhotra and Securities and Exchange Board of India (SEBI) chairman Ajay Tyagi among others.

This was the first meeting of the high-level panel after the presentation of the budget. The previous meeting was held on September 3, 2021.

The FSDC has been set up by the government in consultation with financial market regulators, to strengthen the mechanism for maintaining financial stability, enhance inter-regulatory coordination and promote financial sector development.