Finance Minister Nirmala Sitharaman will review the state of the economy amid global and domestic challenges at a meeting of the Financial Stability and Development Council (FSDC) on Monday.
The 27th high-level panel meeting to be held here will be attended by all financial sector regulators, including RBI Governor Shaktikanta Das, the sources said.
This would be the first meeting of the FSDC after the approval of the budget of Rs 45 lakh crore for 2023-24 with increased emphasis on capital expenditure with an outlay of Rs 10,00,961 crore.
The FSDC is the lead body of sector regulators, headed by the Union finance minister.
The meeting will review the current global and national economic situation and financial stability issues, including those related to banking and NBFCs in view of the bankruptcies of Silicon Valley Bank and Signature Bank and the liquidity pressure facing Credit Suisse, according to the sources.
The council would review the progress of previously approved measures for further development of the financial sector and to achieve inclusive economic growth with macroeconomic stability, they said.
RBI in its latest policy bimonthly revised the economic growth projection for the current fiscal year marginally up to 6.5 percent, from its previous estimate of 6.4 percent.
Introducing the first bimonthly monetary policy of the fiscal year 2023-24 in April, the RBI governor said that GDP growth in the first quarter of 2023-24 is expected to be 7.8 percent.
Growth for the second, third, and fourth quarters of the current fiscal year has been projected at 6.2 percent, 6.1 percent, and 5.9 percent, respectively.
The last meeting of the high-level panel took place in September 2022.
During the last meeting, the Council deliberated on early warning indicators for the economy and readiness to address them, improving the efficiency of existing credit/financial information systems and governance and management issues in systemically important financial institutions, including financial market infrastructures, and Strengthening of the cyber security framework in the financial sector.
Also, common KYC for all financial services and related matters, update on account aggregator and next steps, issues related to energy sector finance, GIFT IFSC strategic role in New Aatmanirbhar Bharat, GIFT-IFSC inter-regulatory issues and The need for the use of the services of registered appraisers by all government departments was also discussed.
The FSDC meeting will also review the activities carried out by the FSDC sub-committee chaired by the RBI Governor and action taken by members on previous FSDC decisions.
In addition to the Governor of the RBI, the Chairman of the Securities and Exchange Board of India, Madhabi Puri Buch, the Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), Debasish Panda, the Chairman of the Board of Insolvency and Bankruptcy of India (IBBI), Ravi Mital, and the newly appointed Pension Funds Regulatory and Development Authority. Chairman Deepak Mohanty will attend the meeting.
The sources said the FSDC meeting will also be attended by Minister of State for Finance Bhagwat Kishanrao Karad, Finance Secretary TV Somanathan, Economic Affairs Secretary Ajay Seth, Revenue Secretary Sanjay Malhotra, Financial Services Secretary Vivek Joshi and other senior officials from the Ministry of Finance.
(Only the headline and image in this report may have been modified by Business Standard staff; all other content is auto-generated from a syndicated feed.)
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