Fresh measures to curb unauthorised online lending apps operations could be on anvil , following deliberation on the issue at the financial stability and Development Council (FSDC) chaired by Nirmala Sitaraman .

The Financial Stability and Development Council (FSDC) is a high-level body in India that was established to address issues related to financial stability, financial sector development, inter-regulatory coordination, and macroprudential supervision of the financial markets in the country. The council was set up in December 2010 in response to the global financial crisis of 2008, with the aim of strengthening and institutionalizing the mechanism for maintaining financial stability in India.

Key objectives of the FSDC include:

1. Enhancing Financial Stability: The council works to identify and mitigate systemic risks within the financial system to ensure overall stability.
2. Promoting Financial Sector Development: FSDC focuses on the development and modernization of various segments of the financial sector, including banking, insurance, capital markets, and non-banking financial companies (NBFCs).
3. Inter-Regulatory Coordination: It facilitates coordination among different financial sector regulators in India, such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), and others.
4. Monitoring Macroprudential Supervision: The council monitors and assesses macroeconomic and financial developments to formulate policies aimed at maintaining financial stability.

The FSDC is chaired by the Finance Minister of India and includes heads of various financial sector regulators, representatives from the Ministry of Finance, and other senior officials. It meets periodically to review the overall financial stability scenario, discuss emerging challenges, and formulate policy responses.

Overall, the FSDC plays a crucial role in coordinating efforts across different regulatory authorities to ensure the stability and development of India's financial system.

The Financial Stability and Development Council (FSDC) holds significant importance in the financial landscape of India for several reasons:

1. Enhancing Financial Stability: FSDC plays a crucial role in monitoring and ensuring the stability of the financial system in India. By identifying potential risks and vulnerabilities within the system, FSDC helps in formulating policies and measures to mitigate these risks, thereby safeguarding the overall stability of the financial sector.
2. Promoting Financial Sector Development: FSDC is instrumental in promoting the development and modernization of various segments of the financial sector, including banking, insurance, capital markets, and non-banking financial companies (NBFCs). By focusing on the growth and efficiency of these sectors, FSDC contributes to the overall economic development of the country.
3. Inter-Regulatory Coordination: One of the key roles of FSDC is to facilitate coordination among different financial sector regulators in India, such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and others. This coordination ensures coherence and consistency in regulatory policies and actions, minimizing regulatory arbitrage and enhancing the effectiveness of regulatory oversight.
4. Monitoring Macroprudential Supervision: FSDC monitors macroeconomic and financial developments to assess systemic risks and vulnerabilities within the financial system. By adopting a macroprudential approach to supervision, FSDC aims to identify and address risks that could potentially threaten the stability of the entire financial system, rather than focusing solely on individual institutions.
5. Policy Formulation and Response: FSDC serves as a platform for policymakers to discuss and formulate coordinated policy responses to emerging challenges and developments in the financial sector. By bringing together key stakeholders, including regulators, government officials, and industry experts, FSDC facilitates informed decision-making and timely policy interventions to address evolving financial market dynamics.

Overall, the significance of FSDC lies in its role as a coordinating body that ensures financial stability, promotes sectoral development, fosters regulatory coherence, and facilitates proactive policy responses to safeguard the integrity and resilience of India's financial system.

The Financial Stability and Development Council (FSDC) in India plays a significant role in ensuring the stability and development of the country's financial sector. Some of the key features and significance of FSDC include:

1. High-Level Coordination: FSDC serves as a high-level coordinating body comprising heads of various financial sector regulators, senior officials from the Ministry of Finance, and other stakeholders. This ensures comprehensive coordination and cooperation among different regulatory bodies and government agencies involved in overseeing the financial sector.
2. Macroprudential Supervision: FSDC focuses on macroprudential supervision, which involves monitoring and assessing systemic risks that could threaten the stability of the entire financial system. By analyzing macroeconomic trends, market developments, and potential risks, FSDC formulates policies to address vulnerabilities and enhance the resilience of the financial sector.
3. Policy Formulation and Implementation: FSDC plays a key role in formulating and implementing policies related to financial stability and development. It examines various regulatory and policy issues affecting the financial sector and proposes measures to address them. This includes policy initiatives to enhance the regulatory framework, improve risk management practices, and promote financial inclusion and innovation.
4. Risk Assessment and Mitigation: FSDC conducts regular risk assessments of the financial system to identify potential threats and vulnerabilities. By analyzing factors such as credit risk, market risk, liquidity risk, and operational risk, FSDC develops strategies to mitigate these risks and safeguard financial stability.
5. Monitoring Systemic Risks: FSDC closely monitors domestic and international developments that could pose systemic risks to the financial system. This includes monitoring global economic trends, financial market conditions, and regulatory developments in other jurisdictions. By staying abreast of emerging risks, FSDC can take proactive measures to mitigate potential threats to financial stability.
6. Policy Advocacy and Coordination: FSDC serves as a platform for advocating policies that promote financial stability and development. It facilitates coordination and collaboration among various stakeholders, including regulators, policymakers, financial institutions, and market participants, to address common challenges and achieve shared objectives.

Overall, FSDC plays a crucial role in ensuring the stability, resilience, and development of India's financial sector by promoting effective coordination, risk management, and policy formulation across different regulatory domains.