The Financial Stability and Development Council (FSDC) chaired by Finance Minister Arun Jaitley has said that the country seems to be much better placed today on the back of improvement in its macro-economic fundamentals. The council also noted that the government’s measures to eliminate the shadow economy and tax evasion are likely to have a positive impact on the country’s gross domestic product and fiscal consolidation in the long run.
At its 16th meeting, the FSDC, which has all financial sector regulators as members, reviewed major issues and challenges facing the economy after the demonetisation of high-value currency notes from November 9, 2016. The council also reviewed the present status of NPAs in banks and measures taken by the government and RBI for dealing with the stressed assets and discussed on further action in this regard.
The FSDC discussed about the various initiatives taken by the Government and Regulators for promoting financial inclusion/financial literacy efforts and discussed further measures for promoting the same. Issues pertaining to fintech, digital innovations and cyber security were discussed. The council took note of the initiatives taken in this regard by the government and the regulators. Also, the regulators offered their suggestions/ proposal for the upcoming Budget for 2017-18, which were deliberated upon by the Council.