Why this is in the news
On 23 October 2026 Union Finance Minister Smt. Nirmala Sitharaman chaired the 30th meeting of the Financial Stability and Development Council (FSDC) in New Delhi. For Prelims, the meeting is a good occasion to revise the Council itself: who chairs it, who sits on it, what it can and cannot do.
What is the FSDC?
- The FSDC is the apex-level forum for financial stability and inter-regulatory coordination. It was set up by the Government of India by a notification dated 30 December 2010, after the announcement in Union Budget 2010-11. Its first meeting was held on 31 December 2010.
- It replaced the High Level Coordination Committee on Financial Markets (HLCCFM).
- Chair: the Union Finance Minister.
- Mandate (DEA): financial stability, financial sector development, inter-regulatory coordination, financial literacy, financial inclusion, macro-prudential supervision of the economy including large financial conglomerates, and India's interface with international financial bodies.
- Secretariat: the Financial Stability and Cyber Security Division of the Department of Economic Affairs, Ministry of Finance. The Secretary of the FSDC works from DEA.
- Sub-Committee: chaired by the Governor, RBI. It meets between Council meetings and does the detailed work. The RBI's Financial Stability Department is its secretariat.
Who attended the 30th meeting (PIB)
The PIB release lists these as attending: the RBI Governor; Secretaries of DEA, Department of Financial Services, Department of Revenue, MeitY and Ministry of Corporate Affairs; the Chief Economic Adviser; the heads of SEBI, IRDAI, IFSCA, PFRDA and IBBI (acting chairperson); the DG of CERT-In; and the Secretary of the FSDC. This is the attendance list for that meeting, not a formal statement of membership.
Statutory basis
The FSDC was created by an executive notification, not by a dedicated Act of Parliament. Do not confuse it with the Joint Committee under Chapter III-E of the RBI Act, 1934 (inserted in 2010), which settles differences of opinion between regulators; the Finance Minister chairs that Joint Committee too, but it is a separate body.
Key facts: 30th meeting (PIB, 23 Oct 2026)
| Item | Fact |
|---|---|
| Date and place | 23 October 2026 (Friday), New Delhi |
| Chair | Smt. Nirmala Sitharaman, Union Finance Minister |
| Macro-financial review | Council reviewed macro-financial stability amid geopolitical uncertainty, the AI boom and a sharp rise in global bond yields; stressed vigilance and proactive steps; decided to strengthen inter-regulatory coordination |
| Cyber | Council reviewed cyber resilience and took note of the Financial Sector Cyber Security Strategy (FSCSS), formulated by an Inter-Ministerial Group of regulators and cyber agencies with DEA, DFS and MeitY. It also covered protection of Critical Information Infrastructure and cyber preparedness of Regional Rural Banks |
| Tokenisation | Council discussed measures to promote Fintech innovation and explored the prospects of tokenisation of financial assets and other real-world assets. PIB records this as discussion and exploration, not a decision |
| Budget and past decisions | Strategy for strengthening the investment ecosystem incl. GIFT-IFSC; simpler, digital KYC and onboarding for NRIs and FPIs; scaling DPIs such as Account Aggregator and the Unified Lending Interface with focus on MSMEs; lower cost of intermediation; rationalising Credit Guarantee Schemes |
| Unclaimed assets | FM urged quicker refund of unclaimed assets; "Your Money, Your Right" campaign noted |
| Meeting frequency | FM urged meetings at more frequent intervals with a predefined schedule |
| Previous meeting | 29th meeting: 10 June 2025, Mumbai |
Exam angle
- Prelims: chair, Sub-Committee chair, year of setting up, nature (executive, not statutory), the body it replaced, and the difference from the RBI Act Joint Committee. Also the "what was discussed vs what was decided" distinction: tokenisation was discussed, FSCSS was "taken note of".
- Mains GS-III: why a multi-regulator body is needed (SEBI, IRDAI, PFRDA, IFSCA and RBI regulate different parts of one financial system), cyber risk as a systemic risk, and the case for regular, scheduled meetings.
Prelims Practice Questions
Question 1: Consider the following statements about the Financial Stability and Development Council (FSDC) of India:
I. It is chaired by the Governor of the Reserve Bank of India.
II. Its Sub-Committee is chaired by the Governor of the Reserve Bank of India.
III. It was set up by the Government through a notification in December 2010.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
Answer and Explanation
Answer: (b)
Statement I is incorrect: the Union Finance Minister chairs the FSDC. Statement II is correct: the Sub-Committee is chaired by the RBI Governor. Statement III is correct: the Council was notified on 30 December 2010.
Question 2: Consider the following statements:
I. The FSDC replaced the High Level Coordination Committee on Financial Markets.
II. The FSDC is a body created by a dedicated Act of Parliament.
Which of the statements given above is/are correct?
(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II
Answer and Explanation
Answer: (a)
Statement I is correct. Statement II is incorrect: the Council was set up by a Government notification (30 December 2010). The Joint Committee under Chapter III-E of the RBI Act, 1934 is a different, statutory body.
Question 3: With reference to the 30th meeting of the FSDC held in October 2026, consider the following:
I. The Council took note of the Financial Sector Cyber Security Strategy.
II. The Council discussed the prospects of tokenisation of financial assets.
III. The Council met in Mumbai.
Which of the statements given above are correct?
(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III
Answer and Explanation
Answer: (a)
I and II match the PIB release. III is wrong: the 30th meeting was in New Delhi; the 29th (June 2025) was in Mumbai.
Sources
Meeting date, chair, outcomes, attendees, 29th meeting reference: PIB, 23 Oct 2026,
29th meeting (10 Jun 2025, Mumbai)
Mandate, secretariat, FSDC and Sub-Committee structure: DEA
Notification 30 Dec 2010, first meeting 31 Dec 2010, HLCCFM replaced
RBI Financial Stability Department as Sub-Committee secretariat