Nirmala Sitharaman Reviewed Current Financial Situation

Finance Minister Nirmala Sitharaman took stock of the current economic situation at a meeting of the Financial Stability and Development Council (FSDC).

The Council reviewed the current global and domestic macro-economic situation and financial stability and vulnerabilities issues, including inter-alia, those concerning NBFCs and Credit Rating Agencies, said an official statement.

The Council reviewed the action taken by members on the decision taken by FSDC earlier and held discussions on the proposals submitted for further strengthening of the resolution framework and framework for cyber security of the financial sector.

The Council also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor, RBI and the initiatives taken by the various regulators in the financial sector.

Finance secretary Rajeev Kumar said the entire financial system and other issues came up during the meeting.

He did not specify the details but said the RBI along with other regulators are holistically looking at the financial sector issues.

The Q2 GDP growth is expected in November end and it will be decider to see what further directions and policy measures are needed. The government has announced several short and long-term measures to boost the economy in three phases between August 23 and September 14.

The Q1 GDP growth fell to 6-year low in the current fiscal at 5 per cent led by a slowdown in the manufacturing sector.

FSDC is a body of financial regulators.