Pitching for merging oversight functions of market, commodity, insurance and pension regulators, Chairman of the Financial Sector Legislative Reforms Commission (FSLRC) B N Srikrishna said, India needs a drastic and complete overhaul of the existing financial regulatory structure to become a $30-40 trillion economy by 2025. Srikrishna also pitched for making Reserve Bank of India (RBI) more accountable so that it can help the government for better administering and governing.
The FSLRC was set up to rewrite financial sector laws and to bring them in tune with current requirements. The commission had recommended the creation of a Monetary Policy Committee (MPC) that would determine the policy interest rate. It has also suggested creation of the Unified Financial Agency (UFA) that would subsume the functions of key agencies such as the Securities and Exchange Board of India, the Pension Fund Regulatory and Development Authority, the Forward Markets Commission and the Insurance Regulatory and Development Authority.
Moreover, the FSLRC had also suggested other financial measure to the government including setting up of a debt management office (DMO) for raising resources for the government expense and doing away with the multiple agency architecture for scanning foreign capital inflows.
