A meeting of the Sub Committee of the Financial Stability and Development Council (FSDC) was held today in New Delhi. Dr. Raghuram G. Rajan, Governor, Reserve Bank of India, chaired the meeting. The meeting was attended by Shri Sumit Bose, Finance Secretary; Dr. Arvind Mayaram, Secretary, Department of Economic Affairs; Shri Rajiv Takru, Secretary, Department of Financial Services, Shri U. K. Sinha, Chairman, Securities and Exchange Board of India (SEBI); Shri T. S. Vijayan, Chairman, Insurance Regulatory and Development Authority (IRDA); Shri Ramesh Abhishek, Chairman, Forward Market Commission (FMC); Dr. Anup Wadhawan, Chairman, Pension Funds Regulatory and Development Authority (PFRDA); Dr. K. P. Krishnan, Additional Secretary, DEA; Deputy Governors of RBI, Dr. K.C. Chakrabarty, Shri H. R. Khan and Dr. Urjit Patel; Executive Director of RBI, Shri G. Gopalakrishna; and other officials.
The Sub Committee had fruitful discussions on various issues like the implementation of the non-legislative recommendations of the FSLRC and setting up of a repository for providing investors with a single view of all financial asset classes, as announced in the Vote of Account for 2014-15.
The Sub Committee discussed the report of the Working Group on Resolution Regimes in India (chaired by Shri Anand Sinha and Dr. Arvind Mayaram) and deliberated on the next steps in setting up an effective resolution regime for the financial sector.
The Sub Committee also discussed the capital requirements of the banking sector over the next five years in view of the Basel III regulations and requirements for supervisory capital and decided to set up a High Powered Inter Regulatory Committee to explore ways of enabling banks to meet these requirements.
The Sub Committee deliberated on various inter regulatory issues including certain areas where greater harmonisation of regulations across segments for similar activities was desirable.